10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

R Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2013; or

£ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ___________ to ___________

Commission file number:  0-12742

Spire Corporation

(Exact name of registrant as specified in its charter)

Massachusetts	04-2457335
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

One Patriots Park, Bedford, Massachusetts	01730-2396
(Address of principal executive offices)	(Zip Code)

781-275-6000

(Registrant’s telephone number including area code)

Indicate by check mark whether the registrant:  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes  R     No  £

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes R  No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer £	Accelerated filer  £	Non-accelerated filer  £	Smaller reporting company R
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  £  No R

The number of shares of the registrant’s common stock outstanding as of August 6, 2013 was 9,207,874. 

TABLE OF CONTENTS

		Page
PART I.	Financial Information
Item 1.	Unaudited Condensed Consolidated Financial Statements:
	Unaudited Condensed Consolidated Balance Sheets as of June 30, 2013 and December 31, 2012	1
	Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2013 and 2012	2
	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2013 and 2012	3
	Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012	4
	Notes to Unaudited Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26
PART II.	Other Information
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	28
	Signatures	29
	Exhibit Index	30

PART I. FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements

SPIRE CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

	June 30, 2013			December 31, 2012
Assets
Current assets
Cash and cash equivalents	$	1,735		$	3,030
Accounts receivable – trade, net	1,453			2,137
Inventories, net	4,966			5,316
Deferred cost of goods sold	92			185
Deposits on equipment for inventory	87			69
Prepaid expenses and other current assets	478			617
Current assets of discontinued operations	—			718
Total current assets	8,811			12,072
Property and equipment, net	1,039			1,197
Intangible and other assets, net	401			393
Available-for-sale investments, at quoted market value (cost of $2,882 and $2,741 at June 30, 2013 and December 31, 2012, respectively)	3,211			2,963
Total assets	$	13,462		$	16,625
Liabilities and Stockholders’ Equity
Current liabilities
Current portion of capital lease obligation	$	14		$	13
Revolving line of credit	589			590
Accounts payable	1,955			1,424
Accrued liabilities	2,450			2,221
Advances on contracts in progress	1,175			1,037
Liabilities of discontinued operations	21			171
Total current liabilities	6,204			5,456
Long-term portion of capital lease obligation	1			8
Deferred compensation	3,211			2,963
Other long-term liabilities	736			746
Total long-term liabilities	3,948			3,717
Total liabilities	10,152			9,173
Stockholders’ equity
Common stock, $0.01 par value; 20,000,000 shares authorized; 9,207,874 and 9,062,633 shares issued and outstanding on June 30, 2013 and December 31, 2012, respectively	92			91
Additional paid-in capital	23,244			23,084
Accumulated deficit	(20,355		)	(15,945		)
Accumulated other comprehensive income	329			222
Total stockholders’ equity	3,310			7,452
Total liabilities and stockholders’ equity	$	13,462		$	16,625

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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SPIRE CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Net sales and revenues
Sales of goods	$	1,467		$	4,449		$	2,437		$	9,938
Contract research and service revenues	2,107			2,171			4,375			4,157
Total net sales and revenues	3,574			6,620			6,812			14,095
Cost of sales and revenues
Cost of goods sold	1,902			4,134			3,693			8,422
Cost of contract research and services	1,159			1,240			2,381			2,474
Total cost of sales and revenues	3,061			5,374			6,074			10,896
Gross margin	513			1,246			738			3,199
Operating expenses
Selling, general and administrative expenses	2,271			2,940			5,085			6,404
Internal research and development expenses	10			93			23			191
Total operating expenses	2,281			3,033			5,108			6,595
Operating loss from continuing operations	(1,768		)	(1,787		)	(4,370		)	(3,396		)
Interest expense, net	(13		)	(36		)	(29		)	(67		)
Foreign exchange gain (loss)	(1		)	1			(9		)	3
Total other expense, net	(14		)	(35		)	(38		)	(64		)
Loss from continuing operations before income tax benefit (provision)	(1,782		)	(1,822		)	(4,408		)	(3,460		)
Income tax benefit (provision) - continuing operations	—			—			(2		)	1,992
Loss from continuing operations	(1,782		)	(1,822		)	(4,410		)	(1,468		)
Loss from discontinued operations before sale of business unit	—			—			—			(430		)
Gain on sale of business unit, net of transaction expenses	—			—			—			5,449
Income tax provision - discontinued operations	—			—			—			(2,008		)
Income from discontinued operations, net of tax	—			—			—			3,011
Net income (loss)	$	(1,782	)	$	(1,822	)	$	(4,410	)	$	1,543
Basic and diluted income (loss) per share:
From continuing operations, net of tax	$	(0.19	)	$	(0.21	)	$	(0.48	)	$	(0.17	)
From discontinued operations, net of tax	—			—			—			0.35
Basic and diluted income (loss) per share	$	(0.19	)	$	(0.21	)	$	(0.48	)	$	0.18
Weighted average number of common and common equivalent shares outstanding – basic and diluted	9,207,874			8,562,633			9,144,482			8,562,633

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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SPIRE CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Comprehensive income (loss):
Net income (loss)	$	(1,782	)	$	(1,822	)	$	(4,410	)	$	1,543
Other comprehensive income (loss):
Change in fair value of available for sale marketable securities, net of tax	(132		)	(223		)	107			109
Total comprehensive income (loss)	$	(1,914	)	$	(2,045	)	$	(4,303	)	$	1,652

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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SPIRE CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Six Months Ended June 30,
	2013			2012
Cash flows from operating activities:
Net income (loss)	$	(4,410	)	$	1,543
Less: Net income from discontinued operations, net of tax	—			3,011
Loss from continuing operations	(4,410		)	(1,468		)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	243			410
Deferred tax benefit	—			(2,008		)
Deferred compensation	107			109
Share-based compensation	77			121
Provision for accounts receivable reserve	18			21
Provision for inventory reserve	175			192
Changes in assets and liabilities:
Restricted cash	—			21
Accounts receivable	666			1,133
Inventories	175			895
Deferred cost of goods sold	93			116
Deposits, prepaid expenses and other current assets	121			679
Accounts payable, accrued liabilities and other liabilities	834			(1,877		)
Deposit - related party	—			300
Advances on contracts in progress	138			(1,203		)
Net cash used in operating activities of continuing operations	(1,763		)	(2,559		)
Net cash used in operating activities of discontinued operations	(150		)	(1,724		)
Net cash used in operating activities	(1,913		)	(4,283		)
Cash flows from investing activities:
Purchase of property and equipment	(58		)	(100		)
Additions to intangible and other assets	(35		)	(11		)
Net cash used in investing activities of continuing operations	(93		)	(111		)
Net cash provided by investing activities of discontinued operations	718			6,859
Net cash provided by investing activities	625			6,748
Cash flows from financing activities:
Principal payments on capital lease obligations	(6		)	(24		)
Principal payments on revolving line of credit, net	(1		)	—
Net cash used in financing activities	(7		)	(24		)
Net increase (decrease) in cash and cash equivalents	(1,295		)	2,441
Cash and cash equivalents, beginning of period	3,030			4,758
Cash and cash equivalents, end of period	$	1,735		$	7,199
Supplemental disclosures of cash flow information:
Interest paid	$	29		$	67
Income taxes paid	$	1		$	5
Supplemental disclosures of non-cash flow information:
Liabilities settled with common stock	$	84		$	—

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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SPIRE CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2013 and 2012

1. Description of the Business

Spire Corporation ("Spire" or the "Company") develops, manufactures and markets highly-engineered products and services in two principal business areas: (i) capital equipment and systems for the photovoltaic solar industry and (ii) biomedical, generally bringing to bear expertise in materials technologies, surface science and thin films across both business areas, discussed below.

In the photovoltaic solar area, the Company develops, manufactures and markets specialized equipment for the production of terrestrial photovoltaic modules from solar cells and provide photovoltaic systems for grid connected applications in the commercial markets.  The Company's equipment has been installed in approximately 200 factories in 50 countries.  The equipment market is very competitive with major competitors located in the U.S., Japan and Europe.  The Company's flagship product is its Sun Simulator which tests module performance.  The Company's other product offerings include turn-key module lines and to a lesser extent other individual equipment.  To compete the Company offers other services such as training and assistance with module certification.  The Company also provides turn-key services to its customers to backward integrate to solar cell manufacturing.

In the biomedical area, the Company provides value-added surface treatments to manufacturers of orthopedic and other medical devices that enhance the durability, antimicrobial characteristics or other material characteristics of their products; and performs sponsored research programs into practical applications of advanced biomedical and biophotonic technologies.

On March 9, 2012, the Company completed the sale of its semiconductor business unit, which provided semiconductor foundry services, operated a semiconductor foundry and fabrication facility and was engaged in the business of wafer epitaxy, foundry services, and device fabrication for the defense, medical, telecommunications and consumer products markets (the “Semiconductor Business Unit”), to Masimo Corporation ("Masimo"). Accordingly, the results of operations and assets and liabilities of the Semiconductor Business Unit are being presented herein as discontinued operations. See Note 13 to the unaudited condensed consolidated financial statements.

Operating results will depend upon revenue growth or decline and product mix, as well as the timing of shipments of higher priced products from the Company's solar equipment line and delivery of solar systems.  Export sales, which amounted to 37% and 34% of net sales and revenues for the three and six months ended June 30, 2013, respectively, and 65% of net sales and revenues for both the three and six months ended June 30, 2012, respectively, continue to constitute a significant portion of the Company's net sales and revenues.

The Company has incurred operating losses from continuing operations.  Operating loss from continuing operations was $1.8 million and $4.4 million for the three and six months ended June 30, 2013, respectively. Operating loss from continuing operations was $1.8 million and $3.4 million for the three and six months ended June 30, 2012, respectively. Net cash used in operating activities was $1.9 million for the six months ended June 30, 2013, which includes $150 thousand of cash used in operating activities of discontinued operations. Net cash used in operating activities was $4.3 million for the six months ended June 30, 2012, which includes $1.7 million of cash used in operating activities of discontinued operations. As of June 30, 2013, the Company had unrestricted cash and cash equivalents of $1.7 million compared to $3.0 million as of December 31, 2012.  The maturity date of the Company's credit facilities is August 30, 2013. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company currently believes that its existing cash resources at June 30, 2013, will be sufficient to fund its operations into the second half of 2013; however, the Company cannot assure you of this.

The Company has various options on how to fund future operational losses or working capital needs, including but not limited to sales of equity, bank debt, the sale or license of assets and technology, or joint ventures involving cash infusions, as it has done in the past; however, there are no assurances that the Company will be able to sell equity, obtain or access bank debt, sell or license assets or technology or enter into such joint ventures on a timely basis and at appropriate values.  The Company has developed several plans including potential strategic alternatives, cost reduction efforts and expanding revenue in other solar markets to offset a decline in business due to global economic conditions.  The Company's inability to successfully implement its cost reduction strategies, expand revenue in other solar markets or to renew its credit facilities, could adversely impact the Company's ability to continue as a going concern.

Based on the forecasts and estimates underlying the Company's current operating plan, the financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

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2. Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting.  Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto for the year ended December 31, 2012, included in the Company’s Annual Report on Form 10-K filed with the SEC.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present the Company’s financial position as of June 30, 2013 and December 31, 2012 and the results of its operations for the three and six months ended June 30, 2013 and 2012. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2013.  The unaudited condensed consolidated balance sheet as of December 31, 2012 has been derived from audited financial statements as of that date.  During the second quarter of 2009, the Company began pursing an exclusive sales process of its Medical Products Business Unit.  On December 14, 2009, the Company completed the sale of the Medical Products Business Unit to Bard. During the first quarter of 2012, the Company began pursing an exclusive sales process of its Semiconductor Business Unit and on March 9, 2012, the Company completed the sale of the Semiconductor Business Unit to Masimo.   Accordingly, the results of operations and assets and liabilities of the Semiconductor Business Unit and the liabilities of the Medical Products Business Unit are being presented herein as discontinued operations.  See Note 13 to the unaudited condensed consolidated financial statements.

Summary of Significant Accounting Policies

The significant accounting policies followed by the Company are set forth in Note 2 to the Company’s consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC.

New Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2013-11 ("ASU 2013-11"), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The update requires, unless certain conditions exists, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective prospectively for reporting periods beginning after December 15, 2013, with early adoption permitted. Retrospective application is permitted. The Company is currently evaluating the impact of ASU 2013-11 yet there are no uncertain tax positions included in the unaudited condensed consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-11 ("ASU 2011-11"), Disclosures about Offsetting Assets and Liabilities. The update requires companies to disclose information about financial instruments that have been offset and related arrangements to enable users of their financial statements to understand the effect of those arrangements on their financial position. Companies will be required to provide both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities that are offset. In January 2013, the FASB issued ASU No. 2013-01 (ASU 2013-01"), Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities. The update limits the scope of the offsetting disclosures required by ASU 2011-11. ASU 2011-11 and ASU 2013-01 is effective for interim and annual periods beginning after December 31, 2012. As the requirements of these ASUs relate only to disclosures, the application of the updates did not have a material impact on the Company's unaudited condensed consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-12 ("ASU 2011-12"), Comprehensive Income: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU 2011-12 deferred the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income to net income alongside their respective components of net income and other comprehensive income. As part of this update, the FASB did not defer the requirement to report comprehensive income in either a single continuous statement or in two separate but consecutive statements. In February 2013, the FASB issued ASU No. 2013-02 ("ASU 2013-02"), Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 is effective for interim and annual periods beginning after December 31, 2012. As ASU

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2013-02 relates to disclosure requirements only, the application of this update did not have a material impact on the Company's unaudited condensed consolidated financial statements.

3. Accounts Receivable/Advances on Contracts in Progress

Net accounts receivable, trade and advances on contracts in progress consists of the following:

(in thousands)	June 30, 2013			December 31, 2012
Amounts billed	$	1,265		$	1,927
Accrued revenue	234			238
Gross accounts receivable - trade	1,499			2,165
Less:  Allowance for doubtful accounts	(46		)	(28		)
Net accounts receivable - trade	$	1,453		$	2,137
Advances on contracts in progress	$	1,175		$	1,037

Accrued revenue represents revenues recognized on contracts for which billings have not been presented to customers as of the balance sheet date. These amounts are billed and generally collected within one year.

The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to pay amounts due. The Company actively pursues collection of past due receivables as the circumstances warrant. Customers are contacted to determine the status of payment and senior accounting and operations management are included in these efforts as is deemed necessary. A specific reserve will be established for past due accounts when it is probable that a loss has been incurred and the Company can reasonably estimate the amount of the loss. The Company does not record an allowance for government receivables and invoices backed by letters of credit as collection is reasonably assured. Bad debts are written off against the allowance when identified. There is no dollar threshold for account balance write-offs. While rare, a write-off is only recorded when all efforts to collect the receivable have been exhausted. The Company received payments of zero and $5 thousand for the six months ended June 30, 2013 and 2012, respectively, against amounts which had been previously reserved for in allowance for doubtful accounts.

Advances on contracts in progress represent billings that have been presented to the customer, as either deposits or progress payments against future shipments, but revenue has not been recognized.

4. Inventories and Deferred Costs of Goods Sold

Inventories, net of $1.0 million and $860 thousand of reserves at June 30, 2013 and December 31, 2012, respectively, and deferred cost of goods sold consist of the following at: 

(in thousands)	June 30, 2013		December 31, 2012
Raw materials	$	1,524	$	1,784
Work in process	2,086		2,103
Finished goods	1,356		1,429
Net inventory	$	4,966	$	5,316
Deferred cost of goods sold	$	92	$	185

The Company wrote-off $29 thousand of excess and obsolete inventory for the six months ended June 30, 2012 and had no write-offs for the six months ended June 30, 2013.

Deferred cost of goods sold represents costs of equipment that has shipped to the customer and title has passed but not all revenue recognition criteria have yet been met.  The Company defers these costs until the related revenue is recognized.

5. Income (Loss) Per Share

The following table provides a reconciliation of the denominators of the Company’s reported basic and diluted income (loss) per share computations for the periods ended:

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	Three Months Ended June 30,		Six Months Ended June 30,
	2013	2012	2013	2012
Weighted average number of common and common equivalent shares outstanding – basic	9,207,874	8,562,633	9,144,482	8,562,633
Add:  Net additional common shares upon assumed exercise of common stock options	—	—	—	—
Adjusted weighted average number of common and common equivalents shares outstanding – diluted	9,207,874	8,562,633	9,144,482	8,562,633

For the three and six months ended June 30, 2013, 3,554 and 4,375 shares of common stock, respectively, and for the three and six months ended June 30, 2012, 878 and 2,287 shares of common stock, respectively, issuable relative to stock options were excluded from the calculation of diluted shares because their inclusion would have been anti-dilutive, due to the Company’s net loss position.

In addition, for the three and six months ended June 30, 2013, 632,446 and 622,446 shares of common stock, respectively, and for the three and six months ended June 30, 2012, 668,446 and 658,446 shares of common stock, respectively, issuable relative to stock options were excluded from the calculation of diluted shares because their inclusion would have been anti-dilutive, due to the Company's net loss position and their exercise prices exceeding the average market price of the stock for the period.

6. Operating Segments and Related Information

The Company's operations are focused on two primary business areas:  Spire Solar (comprised of solar equipment, solar systems and solar research) and Spire Biomedical (comprised of biomedical surface treatments and biophotonics research).  Spire Solar and Spire Biomedical operate out of the Company's facility in Bedford, Massachusetts. Each business area is independently managed and has separate financial results that are reviewed by the Board of Directors and Chief Executive Officer and the chief executive officers of each operating division.

During the first quarter of 2012, the Company began pursuing an exclusive sales process of our semiconductor business and on March 9, 2012, the Company completed the sale of the Semiconductor Business Unit to Masimo Corporation. The Company reported the Semiconductor Business Unit as discontinued operations beginning with our financial results presented in our Quarterly Report on Form 10-Q for the first quarter of fiscal 2012. The Semiconductor Business Unit was previously reported as our optoelectronics segment. Accordingly, the results of operations and assets and liabilities of the Semiconductor Business Unit are being presented herein as discontinued operations and are not included in the table below. See Note 13 to the unaudited condensed consolidated financial statements.

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The following table presents certain continuing operating division information in accordance with the provisions of ASC 280, Segments Reporting.

(in thousands)	Solar			Biomedical		Total Company
For the three months ended June 30, 2013
Net sales and revenues	$	1,892		$	1,682	3,574
Operating income (loss) from continuing operations	$	(1,938	)	$	170	(1,768		)
For the three months ended June 30, 2012
Net sales and revenues	$	4,881		$	1,739	6,620
Operating income (loss) from continuing operations	$	(1,999	)	$	212	(1,787		)
For the six months ended June 30, 2013
Net sales and revenues	$	3,338		$	3,474	$	6,812
Operating income (loss) from continuing operations	$	(4,730	)	$	360	$	(4,370	)
For the six months ended June 30, 2012
Net sales and revenues	$	10,734		$	3,361	$	14,095
Operating income (loss) from continuing operations	$	(3,543	)	$	147	$	(3,396	)

Operating income (loss) from continuing operations is net sales less cost of sales and selling, general and administrative expenses, but is not affected by non-operating income (expense), by income taxes or by net income (loss) from discontinued operations. In calculating operating income (loss) from continuing operations for individual business units, substantial administrative expenses incurred at the operating level that are common to more than one segment are allocated on a net sales basis. Certain corporate expenses of an operational nature are also allocated to the divisions based on factors including occupancy, employment, and purchasing volume. All intercompany transactions have been eliminated.

The following table shows net sales and revenues by geographic area (based on customer location):

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2013		%		2012		%		2013		%		2012		%
United States	$	2,261	63	%	$	2,352	35	%	$	4,534	66	%	$	4,949	35	%
Europe/Africa	454		13		444		7		790		12		2,686		19
Asia	662		19		3,824		58		1,271		19		6,407		46
Rest of the world	197		5		—		—		217		3		53		—
	$	3,574	100	%	$	6,620	100	%	$	6,812	100	%	$	14,095	100	%

Revenues from contracts with United States government agencies for the three months ended June 30, 2013 and 2012 were approximately $197 thousand and $448 thousand or 6% and 7% of total net sales and revenues, respectively.

Revenues from contracts with United States government agencies for the six months ended June 30, 2013 and 2012 were approximately $643 thousand and $872 thousand or 9% and 6% of total net sales and revenues, respectively.

Revenues from the delivery of biomedical services to two customers accounted for 20% and 11% of total net sales and revenues for the three month period ended June 30, 2013.

Revenues from the delivery of biomedical services to two customers accounted for 21% and 13% of total net sales and revenues for the six month period ended June 30, 2013.

Revenues from the delivery of solar equipment to two customers account for 22% and 13% of total net sales and revenues for the three month period ended June 30, 2013. Revenues from the delivery of biomedical services to one customer accounted for 12% of total net sales and revenues for the three month period ended June 30, 2013.

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 Revenues from the delivery of solar equipment to four customers account for 13%, 13% , 13% and 10% of total net sales and revenues for the six month period ended June 30, 2012. Revenues from the delivery of biomedical services to one customer accounted for 11% of total net sales and revenues for the six month period ended June 30, 2012.

Three customers represented approximately 22%, 12% and 12% , respectively, of net accounts receivable, trade at June 30, 2013 and one customer represented approximately 24% of net accounts receivable, trade at December 31, 2012.

7. Intangible and Other Assets

Patents amounted to $86 thousand and $111 thousand, net of accumulated amortization of $847 thousand and $822 thousand, at June 30, 2013 and December 31, 2012, respectively. Licenses amounted to $58 thousand and $60 thousand, net of accumulated amortization of $17 thousand and $15 thousand, at June 30, 2013 and December 31, 2012, respectively. Patent cost is primarily composed of cost associated with securing and registering patents that the Company has been awarded or that have been submitted to, and the Company believes will be approved by the government. License cost is composed of the cost to acquire rights to the underlying technology or know-how. These costs are capitalized and amortized over their useful lives or terms, ordinarily five years using the straight-line method. There are no expected residual values related to these patents. Amortization expense from continuing operations, relating to patents and licenses, was approximately $14 thousand and $27 thousand for the three months ended June 30, 2013 and 2012, respectively. Amortization expense from continuing operations, relating to patents and licenses, was approximately $27 thousand and $40 thousand for the six months ended June 30, 2013 and 2012, respectively.

For disclosure purposes, the table below includes future amortization expense for patents and licenses owned by the Company as well as estimated amortization expense related to patents that remain pending at June 30, 2013 of $107 thousand. This estimated expense for patents pending assumes that the patents are issued immediately, and therefore are being amortized over five years on a straight-line basis. Estimated amortization expense for the periods ending December 31, is as follows: 

(in thousands)	Amortization Expense
2013 remaining 6 months	$	38
2014	68
2015	44
2016	30
2017	27
2018	16
Thereafter	28
	$	251

Also included in other assets are refundable deposits made by the Company of approximately $150 thousand and $154 thousand at June 30, 2013 and December 31, 2012, respectively.

8. Available-for-Sale Investments

Available-for-sale investments consist of assets held as part of the Spire Corporation Non-Qualified Deferred Compensation Plan. These investments have been classified as available-for-sale investments and are reported at fair value, with unrealized gains and losses included in accumulated other comprehensive income. The unrealized gain on these marketable securities was $329 thousand and $222 thousand as of June 30, 2013 and December 31, 2012, respectively. Additionally, the Company settled $84 thousand of accrued liabilities through issuance of common stock to available-for-sale investments during the six month period ended June 30, 2013.

9. Fair Value Measurements

The hierarchy established under ASC 820-10, Fair Value Measures and Disclosures ("ASC 820-10") gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). As required by ASC 820-10, the Company's available-for-sale investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy under ASC 820-10, and its applicability to the Company's available-for-sale investments, are described below:

Level 1 - Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date. As required by ASC 820-10, the Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

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Level 2 - Pricing inputs are quoted prices for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments.

Level 3 - Pricing inputs are unobservable for the investment, that is, inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability. Level 3 includes investments that are supported by little or no market activity.    

Valuation Techniques

Fair value is a market-based measure considered from the perspective of a market participant who would buy the asset or assume the liability rather than the Company's own specific measure. All of the Company's fixed income securities are priced using a variety of daily data sources, largely readily-available market data and broker quotes. To validate these prices, the Company compares the fair market values of the Company's fixed income investments using market data from observable and corroborated sources. The Company also performs the fair value calculations for its common stock and mutual fund securities using market data from observable and corroborated sources. In periods of market inactivity, the observability of prices and inputs may be reduced for certain instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or from Level 2 to Level 3. During the six months ended June 30, 2013, none of the Company's instruments were reclassified between Level 1, Level 2, Level 3 and there have been no changes in valuation techniques.

The following table presents the financial instruments related to the Company’s available-for-sale investment carried at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 by ASC 820-10 valuation hierarchy (as defined above).

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(in thousands)	Balance as of June 30, 2013			Level 1			Level 2			Level 3
Cash and short term investments	$	70		$	70		$	—		$	—
Common stock
Basic Materials	28			28			—			—
Consumer Goods	126			126			—			—
Energy	124			124			—			—
Financial	114			114			—			—
Healthcare	140			140			—			—
Industrial Goods	141			141			—			—
Services	54			54			—			—
Technology	607			607			—			—
Transportation	9			9			—			—
Utilities	16			16			—			—
Total Common Stock	1,359			1,359			—			—
Mutual Fund
Diversified Emerging Markets	230			—			230			—
Foreign Large Blend	239			—			239			—
Foreign Large Growth	233			—			233			—
Large Growth	232			—			232			—
Small Blend	279			279			—			—
Global High Yield Income Fund	52			—			52			—
Total Mutual Fund	1,265			279			986			—
Fixed Income
Domestic	466			—			466			—
International	51			—			51			—
Total Fixed Income	517			—			517			—
Total available-for-sale investments (1)	$	3,211		$	1,708		$	1,503		$	—
Percent of total	100		%	53		%	47		%	—		%

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(in thousands)	Balance as of December 31, 2012			Level 1			Level 2			Level 3
Cash and short term investments	$	32		$	32		$	—		$	—
Common Stock
Basic Materials	15			15			—			—
Consumer Goods	58			58			—			—
Energy	29			29			—			—
Financial	61			61			—			—
Healthcare	52			52			—			—
Industrial Goods	51			51			—			—
Services	32			32			—			—
Technology	376			376			—			—
Transportation	8			8			—			—
Utilities	26			26			—			—
Total Common Stock	708			708			—			—
Mutual Fund
Diversified Emerging Markets	187			—			187			—
Precious Metals Fund	49			—			49			—
Foreign Large Blend	244			—			244			—
Foreign Large Growth	250			—			250			—
Large Growth	220			—			220			—
Small Blend Total	525			525			—			—
Global High Yield Income Fund	52			—			52			—
Total Mutual Funds	1,527			525			1,002			—
Fixed Income
Domestic	678			—			678			—
International	18			—			18			—
Total Fixed Income	696			—			696			—
Total available for-sale-investments (1)	$	2,963		$	1,265		$	1,698		$	—
Percent of total	100		%	43		%	57		%	—		%

⁽¹⁾  Changes in the fair value of available-for-sale investments are recorded in accumulated other comprehensive income, a component of stockholders’ equity, in the Company’s unaudited condensed consolidated balance sheets.

The carrying amounts reflected in the Company's unaudited condensed consolidated balance sheets for cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, and capital lease obligations approximate fair value due to their short-term maturities. The fair value of the Company's revolving line of credit has been estimated by management based on the terms that it believes it could obtain in the current market for debt of the same terms and similar remaining maturities. Due to the short-term nature of the remaining maturities, frequency of amendments to its terms and the variable interest rates, the carrying value of the revolving line of credit approximates fair value at June 30, 2013 and December 31, 2012.

10. Notes Payable and Credit Arrangements

The Company has two separate credit facilities with Silicon Valley Bank (the “Bank” or “SVB”): (i) a Second Amended and Restated Loan and Security Agreement (as amended, the "Revolving Credit Facility") and (ii) an Amended and Restated Export-Import Bank Loan and Security Agreement (as amended, the "Ex-Im Facility") pursuant to which outstanding amounts under this facility are guaranteed by the Export-Import Bank of the United States (the “EXIM Bank”). The credit facilities provide an aggregate amount of $1.5 million under both facilities, with up to $1 million available under the Revolving Credit Facility and

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up to $1.5 million available under the Ex-Im Facility. In addition, a guidance line supports letters of credit in an aggregate amount of up to $1.5 million through August 30, 2013. If the Company achieves certain levels of liquidity, based on cash on hand and availability under the credit facility, the Company will not be required to cash collateralize letters of credit issued under this guidance line.

On June 12, 2013, the Company and the Bank entered into (i) the Fifth Loan Modification Agreement amending certain terms of the Revolving Credit Facility and (ii) the Fifth Loan Modification Agreement amending certain terms of the Ex-Im Facility. Pursuant to the terms of the Fifth Loan Modification Agreements, the Company and the Bank agreed to (i) extend the maturity date of the Revolving Credit Facility and the Ex-Im Facility from June 29, 2013 to August 30, 2013 and and (ii) effective June 1, 2013, amend the definition of the Financial Covenant by deleting the minimum cash covenant and replacing it with a newly defined covenant whereby the Company shall maintain liquidity of at least $1.25 million at all times based on cash on hand and availability under the credit facility, as long as any commitment remains outstanding under the facilities.

The Company's obligations under these two credit facilities, as well as the guidance line, are secured by substantially all of the assets of the Company. Advances under the Revolving Credit Facility are limited to 80% of eligible receivables. Advances under the Ex-Im Facility are limited to (i) 90% of eligible receivables subject to a suitable foreign currency hedge agreement if applicable, plus (ii) 75% of all other eligible receivables billed in foreign currency, plus (iii) 50% of the value of eligible inventory, as defined. In addition, until all amounts under the credit facilities with the Bank are repaid, covenants under the credit facilities impose restrictions on the Company's ability to, among other things, incur additional indebtedness, create or permit liens on the Company's assets, merge, consolidate or dispose of assets (other than in the ordinary course of business), make dividend and other restricted payments, make certain debt or equity investments, make certain acquisitions, engage in certain transactions with affiliates or change the business conducted by the Company. Any failure by the Company to comply with the covenants and obligations under the credit facilities could result in an event of default, in which case the Bank may be entitled to declare all amounts owed to be due and payable immediately.

Under the credit facilities, interest on outstanding borrowings accrues at a rate per annum equal to the greater of (i) the prime rate plus 2.5% or (ii) 7.0%. In addition, if the Company achieves certain levels of liquidity, based on cash on hand and availability under the credit facility, the Company will have a 0.5% lower interest rate.

Advances outstanding under the Revolving Credit Facility were $556 thousand and $449 thousand at June 30, 2013 and December 31, 2012, respectively.  Advances outstanding under the Ex-Im Facility were $33 thousand and $141 thousand at June 30, 2013 and December 31, 2012, respectively.  As of June 30, 2013, the interest rate per annum on the Revolving Credit Facility and Ex-Im Facility was 6.5% and 6.5%, respectively. The Company has utilized $160 thousand and $675 thousand of the guidance line at June 30, 2013 and December 31, 2012, respectively. Combined availability under the Revolving Credit Facility and the Ex-Im Facility was $322 thousand as of June 30, 2013.

11. Share-Based Compensation

The Company has recognized share-based compensation expense from continuing operations of approximately $41 thousand and $66 thousand for the three months ended June 30, 2013 and 2012, respectively. The Company has recognized share-based compensation expense from continuing operations of approximately $77 thousand and $121 thousand for the six months ended June 30, 2013 and 2012, respectively. The total non-cash, share-based compensation expense from continuing operations included in the unaudited condensed consolidated statements of operations for the periods presented is included in the following expense categories:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Cost of contract research, services	$	5	$	6	$	10	$	10
Cost of goods sold	4		10		7		25
Administrative and selling	32		50		60		86
Total share-based compensation	$	41	$	66	$	77	$	121

There was no share-based compensation expense from discontinued operations for the three and six months ended June 30, 2013. Share-based compensation expense from discontinued operations was zero and $(7) thousand for the three and six months ended June 30, 2012, respectively. No share-based compensation expense was capitalized during the six months ended June 30,

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2013 and 2012. Compensation expense related to stock options to be charged in future periods amounts to approximately $52 thousand at June 30, 2013 and will be recognized over a weighted-average period of 1.08 years as follows:

For the years ended December 31,	Expected Compensation Expense
	(in thousands)
2013	$	48
2014	4
	$	52

The Company estimates forfeitures at the time of grant and revises, if necessary, in subsequent periods if actual forfeitures differ from those estimates in order to derive the Company’s best estimate of awards ultimately expected to vest.  Forfeitures represent only the unvested portion of a surrendered option and are typically estimated based on historical experience.

At June 30, 2013, the Company had outstanding options under two option plans: the 1996 Equity Incentive Plan (the “1996 Plan”) and the 2007 Stock Equity Plan (the “2007 Plan”, together the “Plans”).  Both Plans were approved by stockholders and provided that the Board of Directors may grant options to purchase the Company’s common stock to key employees and directors of the Company.  Incentive and non-qualified options must be granted at least at the fair market value of the common stock or, in the case of certain optionees, at 110% of such fair market value at the time of grant. The options may be exercised, subject to certain vesting requirements, for periods up to ten years from the date of issue.  The 1996 Plan expired with respect to the issuance of new grants as of December 10, 2006.  Accordingly, future grants may be made only under the 2007 Plan.

A summary of options outstanding under the Plans as of June 30, 2013 and changes during the six month period ended June 30, 2013 is as follows:

	Number of Shares		Weighted-Average Exercise Price		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (in thousands)
Options Outstanding at December 31, 2012	644,446		$	6.21
Granted	18,000		$	0.58
Exercised	—		$	—
Cancelled/expired	(2,000	)	$	4.32
Options outstanding at June 30, 2013	660,446		$	6.06	5.46	$	1
Options vested and exercisable at June 30, 2013	621,071		$	6.18	5.35	$	1
Option vested and expected to vest at June 30, 2013	658,609		$	6.17	5.35	$	—
Options available for future grant at June 30, 2013	391,059

The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $0.56 as of June 30, 2013, which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised was approximately zero and zero for the six months ended June 30, 2013 and 2012, respectively. The total intrinsic value of options expected to vest at June 30, 2013 was approximately zero, and the weighted average remaining contractual life of outstanding options that are expected to vest is 5.31 years.

Year	Expected Dividend Yield	Risk-Free Interest Rate	Expected Option Life	Expected Volatility Factor
2013	—	0.77%	5.1 years	99.7%
2012	—	0.96%	5.1 years	87.8%

12. Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income balances by component for the three months ended June 30, 2013 consist of the following:

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(in thousands)	Unrealized Gains (Losses) on Available for Sale Securities
Balance, December 31, 2012	$	222
Other comprehensive income before reclassification	162
Amounts reclassified from accumulated other comprehensive income	(55		)
Net current-period other comprehensive income	107
Balance, June 30, 2013	$	329

Reporting reclassifications out of accumulated other comprehensive income for the three months ended June 30, 2013 consist of the following:

Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income (in thousands)			Affected Line Item in the Statement Where Net Income is Resented
Unrealized gains (losses) on available-for-sale investments	$	(55	)	Selling, general and administrative expenses

13. Discontinued Operations and Assets Held for Sale

The accompanying unaudited condensed consolidated balance sheets, statements of operations and cash flows present the results of operations and assets and liabilities of the Semiconductor Business Unit and the liabilities of the Medical Products Business Unit as discontinued operations.

Sales of Medical Products Business Unit

On December 14, 2009, the Company completed the sale of its medical products business unit, which developed and marketed coated and uncoated hemodialysis catheters and related devices for the treatment of chronic kidney disease (the “Medical Products Business Unit”), to Bard Access Systems, Inc. (“Bard”). Accordingly, the liabilities of the Medical Products Business Unit are being presented herein as discontinued operations.

Sale of Semiconductor Business Unit

During the first quarter of 2012, the Company began pursuing an exclusive sales process of the Company's Semiconductor Business Unit. The Company (i) determined that the Semiconductor Business Unit was a separate component of the Company's business as, historically, management reviewed separately the Semiconductor Business Unit's financial results apart from the Company's ongoing continuing operations, (ii) eliminated the Semiconductor Business Unit's financial results from ongoing operations and (iii) determined that the Company will have no further continuing involvement in the operations of the Semiconductor Business Unit or cash flows from the Semiconductor Business Unit after the sale.

On March 9, 2012, the Company completed the sale of the Semiconductor Business Unit to Masimo. The asset purchase agreement provided that the aggregate purchase price for the Semiconductor Business Unit was $8.0 million plus the assumption of $500 thousand in liabilities, with the cash portion of the purchase price being reduced by retained cash, accounts receivable and liabilities assumed by Masimo in excess of the agreed upon assumed liabilities. As a result, in the first quarter of 2012 the Company received approximately $7.3 million in cash (less the escrow described below) and incurred legal and transaction related fees of $425 thousand and Masimo assumed approximately $1.2 million in liabilities. Of the purchase price, approximately $718 thousand was deposited into an indemnity escrow account for fifteen months to partially secure the Company's obligations for any indemnity claims under the asset purchase agreement. There were no indemnity claims related to the asset purchase agreement and the Company received full payment from the indemnity escrow account in June 2013. In connection with this transaction, the lease for the premises in Hudson, New Hampshire where the Semiconductor Business Unit was located, was terminated on March 9, 2012, and the Company was released from all future obligations under the lease as of such date.

The Company recorded a loss from discontinued operations before the sale of the Semiconductor Business Unit of zero and $430 thousand for the six months ended June 30, 2013 and 2012, respectively.

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Summarized Financial Information of the Discontinued Operations

The assets and liabilities of the Semiconductor Business Unit and the liabilities of the Medical Products Business Unit as of June 30, 2013 and December 31, 2012 are as follows:

(in thousands)	June 30, 2013		December 31, 2012
Assets
Current Assets
Restricted cash	$	—	$	718
Total current assets of discontinued operations	—		718
Total assets of discontinued operations	$	—	$	718
Liabilities of Discontinued Operations
Current liabilities of discontinued operations
Accrued liabilities	$	21	$	171
Total current liabilities of discontinued operations	21		171
Total liabilities of discontinued operations	$	21	$	171

Condensed results of operations relating to the Semiconductor Business Unit for the three and six months ended June 30, 2013 and 2012 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Net sales and revenues	$	—	$	—	$	—	$	425
Gross margin	$	—	$	—	$	—	$	(296	)
Loss from discontinued operations before sale of business unit	$	—	$	—	$	—	$	(430	)
Gain on sale of business unit, net of transaction expenses	—		—		—		5,449
Income tax provision	—		—		—		(2,008		)
Net income from discontinued operations, net of tax	$	—	$	—	$	—	$	3,011

14. Subsequent Events

The Company evaluated subsequent events through the date of this filing and had no subsequent events to report.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations section and other parts of this Report contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve risks and uncertainties. These statements relate to our future plans, objectives, expectations and intentions. These statements may be identified by the use of words such as “may”, “could”, “would”, “should”, “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, and similar expressions. Our actual results and the timing of certain events may differ significantly from the results and timing described in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those factors discussed or referred to in the Annual Report on Form 10-K for the year ended December 31, 2012 and in subsequent period reports filed with the Securities and Exchange Commission, including this report. The following discussion and analysis of our financial condition and results of operations should be read in light of those factors and in conjunction with our accompanying Consolidated Financial Statements, including the Notes thereto.

Overview

We develop, manufacture and market highly-engineered products and services in two principal business areas: (i) capital equipment and systems for the photovoltaic solar industry and (ii) biomedical, generally bringing to bear expertise in materials technologies, surface science and thin films across both business areas, discussed below.

In the photovoltaic solar area, we develop, manufacture and market specialized equipment for the production of terrestrial photovoltaic modules from solar cells and provides photovoltaic systems for grid connected applications in the commercial markets.  Our equipment has been installed in approximately 200 factories in 50 countries.  The equipment market is very competitive with major competitors located in Japan and Europe.  Our flagship product is our Sun Simulator which tests module performance.  Our other product offerings include turn-key module lines and to a lesser extent other individual equipment.  To compete we offer other services such as training and assistance with module certification.  We also provide turn-key services to our customers to backward integrate to solar cell manufacturing. At times, we supply materials such as solar cells to certain customers.

In the biomedical area, we provide value-added surface treatments to manufacturers of orthopedic and other medical devices that enhance the durability, antimicrobial characteristics or other material characteristics of their products; and perform sponsored research programs into practical applications of advanced biomedical and biophotonic technologies.

On March 9, 2012, we completed the sale of our semiconductor business unit, which provides semiconductor foundry services, operates a semiconductor foundry and fabrication facility and is engaged in the business of wafer epitaxy, foundry services, and device fabrication for the defense, medical, telecommunications and consumer products markets (the “Semiconductor Business Unit”), to Masimo Corporation ("Masimo"). Accordingly, the results of operations and assets and liabilities of the Semiconductor Business Unit are being presented herein as discontinued operations. See Note 13 to the unaudited condensed consolidated financial statements.

Operating results will depend upon revenue growth or decline and product mix, as well as the timing of shipments of higher priced products from our solar equipment line and delivery of solar systems.  Export sales, which amounted to 37% and 34% of net sales and revenues for the three and six months ended June 30, 2013, respectively, and 65% and 65% of net sales and revenues for the three and six months ended June 30, 2012, respectively, continue to constitute a significant portion of our net sales and revenues.

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Results of Operations

The following table sets forth certain items as a percentage of net sales and revenues for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Net sales and revenues	100	%	100	%	100	%	100	%
Cost of sales and revenues	(86	)	(81	)	(89	)	(77	)
Gross margin	14		19		11		23
Selling, general and administrative expenses	(64	)	(45	)	(75	)	(46	)
Internal research and development expenses	—		(1	)	—		(1	)
Operating loss from continuing operations	(50	)	(27	)	(64	)	(24	)
Other expense, net	—		(1	)	(1	)	—
Loss from continuing operations before income tax benefit	(50	)	(28	)	(65	)	(24	)
Income tax benefit - continuing operations	—		—		—		14
Loss from continuing operations	(50	)	(28	)	(65	)	(10	)
Income from discontinued operations, net of tax	—		—		—		21
Net income (loss)	(50	)%	(28	)%	(65	)%	11	%

Overall

Our total net sales and revenues for the six months ended June 30, 2013 were $6.8 million as compared to $14.1 million for the six months ended June 30, 2012, which represents a decrease of $7.3 million or 52%. The decrease was primarily attributable to a $7.4 million decrease in solar revenue, partially offset by a slight increase in biomedical revenue.

Solar Business Unit

Sales in our solar business unit decreased 69% during the six months ended June 30, 2013 to $3.3 million as compared to $10.7 million for the six months ended June 30, 2012. The decrease in solar business unit revenue is primarily the result of a decrease in solar module equipment revenue in 2013 of $7.3 million, partially offset by an increase in equipment research and development revenue of $504 thousand in 2013. Lower government incentives in the photovoltaic market and the world-wide oversupply of photovoltaic modules relative to market demand has led to precipitously declining prices in the photovoltaic market. The oversupply has also resulted in reduced demand for photovoltaic manufacturing equipment that will not improve until the module supply/demand imbalance is rectified via the growing photovoltaic systems market. Our Solar Business Unit has been negatively impacted by this reduction in demand which is contributing to decreased revenue in our solar business unit.

Biomedical Business Unit

Revenues on our biomedical business unit increased 3% during the six months ended June 30, 2013 to $3.5 million as compared to $3.4 million for the six months ended June 30, 2012.  The increase was primarily attributable to an increase in revenue from our orthopedics coating services, partially offset by a decrease in revenue from our research and development contracts.

Three and Six Months Ended June 30, 2013 Compared to Three and Six Months Ended June 30, 2012

Net Sales and Revenues

The following table categorizes our net sales and revenues for the periods presented:

	Three Months Ended June 30,				Decrease
(in thousands)	2013		2012		$			%
Sales of goods	$	1,467	$	4,449	$	(2,982	)	(67	)%
Contract research and services revenues	2,107		2,171		(64		)	(3	)%
Net sales and revenues	$	3,574	$	6,620	$	(3,046	)	(46	)%

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The 67% decrease in sales of goods for the three months ended June 30, 2013 as compared to the three months ended June 30, 2012 was primarily due to a decrease of $2.8 million in solar module manufacturing equipment revenues. The decrease in solar module equipment sales of 66% in 2013 as compared to 2012 was primarily due to a decrease in individual module equipment units delivered in 2013. Lower government incentives in the photovoltaic market and the world-wide oversupply of photovoltaic modules relative to market demand has led to precipitously declining prices in the photovoltaic market. The oversupply has also resulted in reduced demand for photovoltaic manufacturing equipment that will not improve until the module supply/demand imbalance is rectified via the growing photovoltaic systems market. Our Solar Business Unit has been negatively impacted by this reduction in demand which is contributing to decreased sales of goods.

The 3% decrease in contract research and services revenues for the three months ended June 30, 2013 as compared to the three months ended June 30, 2012 is primarily attributable to a decrease of $314 thousand in solar research and development revenue, partially offset by an increase of $308 thousand in equipment research and development revenue. The decrease in solar research and development revenue of 73% in 2013 as compared to 2012 was primarily due to the completion of two research and development projects in the first quarter of 2013 and the second quarter of 2012. The increase in equipment research and development revenue in 2013 as compared to 2012 was primarily due to new research and development projects starting in the third quarter of 2012.

The following table categorizes our net sales and revenues for the periods presented:

	Six Months Ended June 30,				Increase (Decrease)
(in thousands)	2013		2012		$			%
Sales of goods	$	2,437	$	9,938	$	(7,501	)	(75	)%
Contract research and services revenues	4,375		4,157		218			5	%
Net sales and revenues	$	6,812	$	14,095	$	(7,283	)	(52	)%

The 75% decrease in sales of goods for the six months ended June 30, 2013 as compared to the six months ended June 30, 2012 was primarily due to a decrease of $7.3 million in solar module manufacturing equipment revenues. The decrease in solar module equipment sales of 75% in 2013 as compared to 2012 was primarily due to a decrease in individual module equipment units delivered in 2013. Lower government incentives in the photovoltaic market and the world-wide oversupply of photovoltaic modules relative to market demand has led to precipitously declining prices in the photovoltaic market. The oversupply has also resulted in reduced demand for photovoltaic manufacturing equipment that will not improve until the module supply/demand imbalance is rectified via the growing photovoltaic systems market. Our Solar Business Unit has been negatively impacted by this reduction in demand which is contributing to decreased sales of goods.

The 5% increase in contract research and services revenues for the six months ended June 30, 2013 as compared to the six months ended June 30, 2012 is primarily attributable to an increase of $504 thousand in equipment research and development revenue and an increase of $243 thousand in biomedical service revenue, partially offset by a decrease of $399 thousand in solar research and development revenue and a decrease of $130 thousand in biomedical research and development revenue. The increase in equipment research and development revenue in 2013 as compared to 2012 was primarily due to new research and development projects starting in the third quarter of 2012. Revenues from our biomedical services increased 8% in 2013 compared to 2012 as a result of an increase in revenue from two large customers in 2013. The decrease in solar research and development revenue of 50% in 2013 as compared to 2012 was primarily due to the completion of two research and development projects in the first quarter of 2013 and the second quarter of 2012. The decrease in biomedical research and development revenue of 57% in 2013 as compared to 2012 was primarily due to the completion of two research and development projects in 2012.

Cost of Sales and Revenues

The following table categorizes our cost of sales and revenues for the periods presented, stated in dollars and as a percentage of related sales and revenues:

	Three Months Ended June 30,								Decrease
(in thousands)	2013		%		2012		%		$			%
Cost of goods sold	$	1,902	130	%	$	4,134	93	%	$	(2,232	)	(54	)%
Cost of contract research and services	1,159		55	%	1,240		57	%	(81		)	(7	)%
Net cost of sales and revenues	$	3,061	86	%	$	5,374	81	%	$	(2,313	)	(43	)%

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Cost of goods sold decreased 54% for the three months ended June 30, 2013 as compared to the three months ended June 30, 2012, primarily due to a decrease of $2.2 million in costs related to solar module equipment. The decrease in solar module equipment costs of 55% in 2013 as compared to 2012 was primarily due to a decrease in associated revenue. As a percentage of sales, cost of goods sold was 130% of sales of goods in 2013 as compared to 93% of sales of goods in 2012. This increase in the percentage of sales in 2013 is due primarily to a decline in sales of higher margin equipment in 2013 and to a lesser extent, lower indirect costs not sufficient to offset the amount of overhead absorbed due to the reduction in sales volume.

Cost of contract research and services decreased 7% for the three months ended June 30, 2013 as compared to the three months ended June 30, 2012, primarily due to a decrease of $146 thousand in costs related to solar research and development services and $58 thousand in costs related to biomedical research and development services, partially offset by an increase of $98 thousand in costs related to equipment research and development services. The decrease in solar research and development services costs of 76% in 2013 as compared to 2012 was primarily due to a reduction in direct costs related to the completion of two projects. The decrease in biomedical research and development services costs of 38% in 2013 as compared to 2012 was primarily due to a reduction in direct costs related to reduced revenue and reduced indirect employee related costs. The increase in equipment research and development services costs in 2013 as compared to 2012 was primarily due to new equipment research and development projects starting in the third quarter of 2012. Cost of contract research and services as a percentage of related revenue decreased to 55% of related revenues in 2013 from 57% in 2012. This decrease in the percentage of revenue in 2013 is primarily due to higher margin from new equipment research and development projects started in the third quarter of 2012.

Cost of sales and revenues also includes approximately $9 thousand and $16 thousand of share-based compensation for the three months ended June 30, 2013 and 2012, respectively.

The following table categorizes our cost of sales and revenues for the periods presented, stated in dollars and as a percentage of related sales and revenues:

	Six Months Ended June 30,								Decrease
(in thousands)	2013		%		2012		%		$			%
Cost of goods sold	$	3,693	152	%	$	8,422	85	%	$	(4,729	)	(56	)%
Cost of contract research and services	2,381		54	%	2,474		60	%	(93		)	(4	)%
Net cost of sales and revenues	$	6,074	89	%	$	10,896	77	%	$	(4,822	)	(44	)%

Cost of goods sold decreased 56% for the six months ended June 30, 2013 as compared to the six months ended June 30, 2012, primarily due to a decrease of $4.6 million in costs related to solar module equipment. The decrease in solar module equipment costs of 57% in 2013 as compared to 2012 was primarily due to a decrease in associated revenue. As a percentage of sales, cost of goods sold increased to 152% of sales of goods in 2013 as compared to 85% of sales of goods in 2012. This increase in the percentage of sales in 2013 is due primarily to a decline in sales of higher margin equipment in 2013 and to a lesser extent, lower indirect costs not sufficient to offset the amount of overhead absorbed due to the reduction in sales volume.

Cost of contract research and services decreased 4% for the six months ended June 30, 2013 as compared to the six months ended June 30, 2012, primarily due to a decrease of $143 thousand in costs related to solar research and development services and $85 thousand in costs related to biomedical services, partially offset by an increase of $156 thousand in costs related to equipment research and development services. The decrease in solar research and development services costs of 42% in 2013 as compared to 2012 was primarily due to a reduction in direct costs related to the completion of two projects. The decrease in biomedical services costs of 4% in 2013 as compared to 2012 was primarily due to reductions in indirect costs. The increase in equipment research and development services costs in 2013 as compared to 2012 was primarily due to new equipment research and development projects starting in the third quarter of 2012. Cost of contract research and services as a percentage of related revenue decreased to 54% of related revenues in 2013 from 60% in 2012. This decrease in the percentage of sales in 2013 is primarily due to higher margin from new equipment research and development projects starting in the third quarter of 2012.

Cost of sales and revenues also includes approximately $17 thousand and $35 thousand of share-based compensation for the six months ended June 30, 2013 and 2012, respectively.

Operating Expenses

The following table categorizes our operating expenses for the periods presented, stated in dollars and as a percentage of total sales and revenues:

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	Three Months Ended June 30,								Decrease
(in thousands)	2013		%		2012		%		$			%
Selling, general and administrative	$	2,271	64	%	$	2,940	44	%	$	(669	)	(23	)%
Internal research and development	10		—	%	93		1	%	(83		)	(89	)%
Operating expenses	$	2,281	64	%	$	3,033	46	%	$	(752	)	(25	)%

Selling, General and Administrative Expenses

Selling, general and administrative expense decreased 23% in the three months ended June 30, 2013 as compared to the three months ended June 30, 2012, primarily as a result of a decrease in marketing, rent and employee related expenses and a decrease in agent commissions in the solar business unit.  In addition, there were fewer losses realized related to the change in value of the deferred compensation plan. Selling, general and administrative expense increased to 64% of sales and revenues in 2013 as compared to 44% in 2012.  The increase was primarily due to the decrease in sales and revenues.

Selling, general and administrative expenses include approximately $32 thousand and $50 thousand of share-based compensation for the three months ended June 30, 2013 and 2012, respectively.

Internal Research and Development

Internal research and development expense decreased 89% in the three months ended June 30, 2013 as compared to the three months ended June 30, 2012, primarily as a result of lower levels of research and development spent in the solar group.  As a percentage of sales and revenue, internal research and development expenses decreased slightly in 2013 when compared to 2012.

The following table categorizes our operating expenses for the periods presented, stated in dollars and as a percentage of total sales and revenues:

	Six Months Ended June 30,								Decrease
(in thousands)	2013		%		2012		%		$			%
Selling, general and administrative	$	5,085	75	%	$	6,404	45	%	$	(1,319	)	(21	)%
Internal research and development	23		—	%	191		1	%	(168		)	(88	)%
Operating expenses	$	5,108	75	%	$	6,595	47	%	$	(1,487	)	(23	)%

Selling, General and Administrative Expenses

Selling, general and administrative expense decreased 21% in the six months ended June 30, 2013 as compared to the six months ended June 30, 2012, primarily as a result of a decrease in marketing, insurance and employee related expenses and a decrease in agent commissions in the solar business unit.  Selling, general and administrative expense increased to 75% of sales and revenues in 2013 as compared to 45% in 2012.  The increase was primarily due to the decrease in sales and revenues.

Selling, general and administrative expenses include approximately $60 thousand and $86 thousand of share-based compensation for the six months ended June 30, 2013 and 2012, respectively.

Internal Research and Development

Internal research and development expense decreased 88% in the six months ended June 30, 2013 as compared to the six months ended June 30, 2012, primarily as a result of lower levels of research and development spent in the solar group.  As a percentage of sales and revenue, internal research and development expenses decreased slightly in 2013 when compared to 2012.

Other Expense, Net

We incurred interest expense of $13 thousand and $36 thousand for the three months ended June 30, 2013 and 2012, respectively.  The decrease in interest expense is due to lower interest payments due to reduced amounts outstanding under the credit facilities with Silicon Valley Bank in 2013 compared with 2012. We had currency exchange losses of approximately $1 thousand and currency exchange gains of approximately $1 thousand during the three months ended June 30, 2013 and 2012, respectively.

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We incurred interest expense of $29 thousand and $67 thousand for the six months ended June 30, 2013 and 2012, respectively.  The decrease in interest expense is due to lower interest payments due to reduced amounts outstanding under the credit facilities with Silicon Valley Bank in 2013 compared with 2012. We had currency exchange losses of approximately $9 thousand and currency exchange gains of approximately $3 thousand during the six months ended June 30, 2013 and 2012, respectively.

Income Taxes

We recorded a state income tax provision from continuing operations of $2 thousand during the six months ended June 30, 2013. We recorded an income tax benefit on our loss from continuing operations of $2.0 million during the six months ended June 30, 2012, which was offset by a provision on our income from discontinued operations of $2.0 million during the six months ended June 30, 2012. Gross federal net operating loss carryforwards were approximately $13.9 million as of December 31, 2012 and expire at various times through 2032. We have a full valuation allowance recorded against the net deferred tax assets at June 30, 2013 due to uncertainty regarding realization of these assets in the future.

Income from Discontinued Operations

During the first quarter of 2012, we began pursuing an exclusive sales process of our Semiconductor Business Unit.

On March 9, 2012, we completed the sale of the Semiconductor Business Unit to Masimo. Accordingly, the results of operations and assets and liabilities of the Semiconductor Business Unit are being presented herein as discontinued operations.

We recorded net income from discontinued operations of $3.0 million for the six months ended June 30, 2012. Included in discontinued operations for the six months ended June 30, 2012 is a gain on sale of business unit to Masimo of $5.4 million and an income tax provision of $2.0 million. Included in the gain of $5.4 million is proceeds received from Masimo of $8.0 million, less assets and liabilities assumed by Masimo of $2.1 million and legal and professional fees related to complete the sale of $425 thousand. See Note 13 to the unaudited condensed consolidated financial statements.

Net Income (Loss)

We reported net loss of $1.8 million and $1.8 million for the three months ended June 30, 2013 and 2012, respectively. Net loss decreased approximately $40 thousand, primarily due to a $752 thousand decline in operating expenses, partially offset by a $710 thousand decline in solar business unit margin.

We reported net loss of $4.4 million and net income of $1.5 million for the six months ended June 30, 2013 and 2012, respectively. Net income decreased approximately $6.0 million, primarily due to a $5.0 million decline from discontinued operations before tax and a $2.7 million decline in solar business unit margin, partially offset by a $1.5 million decline in operating expenses and improved margin in the biomedical business unit of $217 thousand.

Liquidity and Capital Resources

	June 30,		December 31,		Decrease
(in thousands)	2013		2012		$			%
Cash and cash equivalents	$	1,735	$	3,030	$	(1,295	)	(43	)%
Working capital	$	2,607	$	6,616	$	(4,009	)	(61	)%

Cash and cash equivalents decreased due to cash used in operating activities, partially offset by cash provided by investing activities. The overall decrease in working capital is due to a decrease in current assets, primarily cash, accounts receivable, inventories and current assets of discontinued operations along with an increase in accounts payable and accrued liabilities. We have historically funded our operating cash requirements using operating cash flow, proceeds from the sale and licensing of technology and assets and proceeds from the sale of equity securities.

There are no material commitments by us for capital expenditures. At June 30, 2013, our accumulated deficit was approximately $20.4 million, compared to accumulated deficit of approximately $15.9 million as of December 31, 2012.

We currently believe that our existing cash resources at June 30, 2013, will be sufficient to fund our operations into the second half of 2013; however, we cannot assure you of this. The maturity date of our credit facilities is August 30, 2013. As a result, in our Annual Report on Form 10-K for the year ended December 31, 2012, our independent registered public accounting firm expressed a substantial doubt about our ability to continue as a going concern in their report on our consolidated financial statements dated March 28, 2013.

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We have various options on how to fund future operational losses or working capital needs, including but not limited to sales of equity, bank debt, the sale or license of assets and technology, or joint ventures involving cash infusions, as we have done in the past; however, there are no assurances that we will be able to sell equity, obtain or access bank debt, sell or license assets or technology or enter into such joint ventures on a timely basis and at appropriate values. We have developed several plans including potential strategic alternatives, cost reduction efforts and expand revenue in other solar markets to offset a decline in business due to global economic conditions.  Our inability to successfully implement our cost reduction strategies, expand revenue in other solar markets or to renew our credit facilities, could adversely impact our ability to continue as a going concern.

Based on the forecasts and estimates underlying our current operating plan, the financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

Loan Agreements

We have two separate credit facilities with Silicon Valley Bank (the “Bank” or “SVB”): (i) a Second Amended and Restated Loan and Security Agreement (as amended, the “Revolving Credit Facility”) and (ii) an Amended and Restated Export-Import Bank Loan and Security Agreement (as amended, the “Ex-Im Facility”) pursuant to which outstanding amounts under this facility are guaranteed by the Export-Import Bank of the United States (the “EXIM Bank”). The credit facilities provide an aggregate amount of $1.5 million under both facilities, with up to $1 million available under the Revolving Credit Facility and up to $1.5 million available under the Ex-Im Facility. In addition, a guidance line supports letters of credit in an aggregate amount of up to $1.5 million through August 30, 2013. If we achieve certain levels of liquidity, based on cash on hand and availability under the credit facility, we will not be required to cash collateralize letters of credit issued under this guidance line.

On June 12, 2013, we entered into with the Bank (i) the Fifth Loan Modification Agreement amending certain terms of the Revolving Credit Facility and (ii) the Fifth Loan Modification Agreement amending certain terms of the Ex-Im Facility. Pursuant to the terms of the Fifth Loan Modification Agreements, we agreed with the Bank to (i) extend the maturity date of the Revolving Credit Facility and the Ex-Im Facility from June 29, 2013 to August 30, 2013 and and (ii) effective June 1, 2013, amend the definition of the Financial Covenant by deleting the minimum cash covenant and replacing it with a newly defined covenant whereby we shall maintain liquidity of at least $1.25 million at all times based on cash on hand and availability under the credit facility, as long as any commitment remains outstanding under the facilities.

In addition, until all amounts under the credit facilities with the Bank are repaid, covenants under the credit facilities impose restrictions on our ability to, among other things, incur additional indebtedness, create or permit liens on our assets, merge, consolidate or dispose of assets (other than in the ordinary course of business), make dividend and other restricted payments, make certain debt or equity investments, make certain acquisitions, engage in certain transactions with affiliates or change the business conducted by us. Any failure by the us to comply with the covenants and obligations under the credit facilities could result in an event of default, in which case the Bank may be entitled to declare all amounts owed to be due and payable immediately.

Under the credit facilities, interest on outstanding borrowings accrues at a rate per annum equal to the greater of (i) the prime rate plus 2.5% or (ii) 7.0%. In addition, if we achieve certain levels of liquidity, based on cash on hand and availability under the credit facility, we will have a 0.5% lower interest rate.

Advances outstanding under the Revolving Credit Facility were $556 thousand and $449 thousand at June 30, 2013 and December 31, 2012, respectively. Advances outstanding under the Ex-Im Facility were $33 thousand and $141 thousand at June 30, 2013 and December 31, 2012, respectively. As of June 30, 2013, the interest rate per annum on the Revolving Credit Facility and the Ex-Im Facility was 6.5% and 6.5%, respectively. We have utilized $160 thousand and $675 thousand of the guidance line at June 30, 2013 and December 31, 2012, respectively. Combined availability under the Revolving Credit Facility and the Ex-Im Facility was $322 thousand as of June 30, 2013.

Net Cash Used in Operating Activities

Net cash used in operating activities was $1.9 million for the six months ended June 30, 2013, which includes $150 thousand of cash used in operating activities of discontinued operations. Net cash used in operating activities was $4.3 million for the six months ended June 30, 2012, which includes $1.7 million of cash used in operating activities of discontinued operations. See Note 13 to the unaudited condensed consolidated financial statements. As of June 30, 2013, we had unrestricted cash and cash equivalents of $1.7 million compared to $3.0 million as of December 31, 2012.

Foreign Currency Fluctuation

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We sell almost exclusively in U.S. dollars, generally against an irrevocable non-transferable confirmed letter of credit through a major United States bank. Accordingly, we are not directly affected by foreign exchange fluctuations on our current sales orders. However, fluctuations in foreign exchange rates do have an effect on our customers' access to U.S. dollars and on the pricing competition on certain pieces of equipment that we sell in selected markets. We bear the risk of any currency fluctuations that may be associated with these commitments. We attempt to hedge known transactions when possible to minimize foreign exchange risk. We had no hedging activity during the first six months of 2013 and 2012. Foreign exchange gain (loss) included in other expense, net, was a loss of approximately $1.0 thousand and a gain of $1.0 thousand during the three months ended June 30, 2013 and 2012, respectively, and was a loss of approximately $9 thousand and a gain of $3 thousand during the six months ended June 30, 2013 and 2012, respectively.

Related Party Transactions

On November 30, 2007, we entered into a new Lease Agreement (the “Bedford Lease”) with SPI-Trust, a Trust of which Roger G. Little, Chairman of the Board, Chief Executive Officer and President of the Company, is the sole trustee and principal beneficiary, with respect to 144,230 square feet of space comprising the entire building in which we have occupied space since December 1, 1985. The term of the Bedford Lease commenced on December 1, 2007 and was originally set to expire on November 30, 2012. The annual rental rate for the first year of the Bedford Lease was $12.50 per square foot on a triple net basis, whereby the tenant is responsible for operating expenses, taxes and maintenance of the building. The annual rental rate increased on each anniversary by $0.75 per square foot.

On September 17, 2010, we entered into the First Amendment to Lease Agreement with SPI-Trust to amend the Bedford Lease. The term of the Bedford Lease was extended for an additional five (5) years to expire on November 30, 2017. The annual rental rate for the first year of the extended term (December 1, 2012 through November 30, 2013) is $16.00 per square foot on a triple net basis, whereby the tenant is responsible for operating expenses, taxes and maintenance of the building. After the first year of the extended term of the Bedford Lease, the annual rental rate increases on each anniversary by $0.50 per square foot. We have the right to further extend the term of the Bedford Lease for an additional five (5) year period. If we exercise this right to further extend the term of the Bedford Lease, the annual rental rate for the first year of the further extended term will be the greater of: (a) the rental rate in effect immediately preceding the commencement of the extended term; or (b) the market rate at such time, and on each anniversary of the commencement of the extended term the rental rate will increase by $0.50 per square foot. Additionally, SPI-Trust agreed to reimburse us up to $50 thousand for all costs incurred by us in connection with any alterations or improvements to the premises or repairs or replacements to the heating and air conditioning systems. We believe that the terms of the Bedford Lease, as amended, are commercially reasonable. Rent expense under the Bedford Lease was $578 thousand for each of the three months ended June 30, 2013 and 2012, respectively, and $1.2 million for each of the six months ended June 30, 2013 and 2012, respectively.

On August 29, 2008, we entered into a new Lease Agreement (the “Hudson Lease”) with SPI-Trust, with respect to 90 thousand square feet of space comprising the entire building in which Spire Semiconductor has occupied space since June 1, 2003.  The term of the Hudson Lease commenced on September 1, 2008, and was to continue for seven (7) years until August 31, 2015.  The annual rental rate for the first year of the Hudson Lease was $12.50 per square foot on a triple-net basis, whereby the tenant was responsible for operating expenses, taxes and maintenance of the building.  The annual rental rate increases on each anniversary by $0.75 per square foot.  In addition, we were required to deposit with SPI-Trust $300 thousand as security for performance by us for our covenants and obligations under the Hudson Lease.  SPI-Trust is responsible, at its sole expense, to make certain defined tenant improvements to the building.  We believe that the terms of the Hudson Lease was commercially reasonable and reflective of market rates.  The Hudson Lease was classified as a related party operating lease. Rent expense from continuing operations under the Hudson Lease was zero and $119 thousand for the six months ended June 30, 2013 and 2012, respectively. Rent expense from discontinued operations under the Hudson Lease was zero and $134 thousand for the six months ended June 30, 2013 and 2012, respectively. In connection with sale of the Semiconductor Business Unit, the lease was terminated on March 9, 2012 and we were released from all future obligations under the lease as of such date. The security deposit of $300 thousand was used to off-set rent payments in the first quarter of 2012. See Note 13 to the unaudited condensed consolidated financial statements.

Critical Accounting Policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Among the significant estimates affecting our condensed consolidated financial statements are those relating to revenue recognition, reserves for doubtful accounts, reserve for excess and obsolete inventory, impairment of long-lived assets, share-based compensation and warranty reserves. We regularly evaluate our estimates and assumptions based upon historical experience

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and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. To the extent actual results differ from those estimates, our future results of operations may be affected. We believe the critical accounting policies affect our more significant judgments and estimates used in the preparation of our condensed consolidated financial statements. A summary of significant accounting policies and a description of accounting policies that are considered critical may be found in our Annual Report on Form 10-K for the year ended December 31, 2012, in Note 2 of the notes to consolidated financial statements and the Critical Accounting Policies section of Management's Discussion and Analysis of Financial Condition and Results of Operations.

Contractual Obligations, Commercial Commitments and Off-Balance Sheet Arrangements

The following table summarizes our gross contractual obligations at June 30, 2013 and the maturity periods and the effect that such obligations are expected to have on our liquidity and cash flows in future periods:

	Payments Due by Period
Contractual Obligations	Total		Less than 1 Year		2 - 3 Years		4 - 5 Years		More Than  5 Years
(in thousands)
Revolving Credit Facility (SVB)	$	556	$	556	$	—	$	—	$	—
Ex-Im Facility (SVB)	$	33	$	33	$	—	$	—	$	—
Purchase obligations	$	826	$	808	$	17	$	1	$	—
Unrelated party capital leases	$	15	$	14	$	1	$	—	$	—
Operating leases:
Unrelated party operating leases	$	127	$	91	$	36	$	—	$	—
Related party operating leases	$	10,913	$	2,349	$	4,916	$	3,648	$	—

Purchase obligations include all open purchase orders outstanding regardless of whether they are cancelable or not. Included in purchase obligations are raw material, equipment and services needed to fulfill customer orders.

The Revolving Credit Facility and Ex-Im Facility do not include an interest component to the contractual obligation.

Outstanding letters of credit totaled $160 thousand and $675 thousand at June 30, 2013 and December 31, 2012, respectively. The letters of credit secure performance obligations and purchase commitments, and allow holders to draw funds up to the face amount of the letter of credit if we do not perform as contractually required.  The outstanding letters of credit at June 30, 2013 and December 31, 2012 were secured by the Revolving Credit Facility and Ex-Im Facility.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not required as we are a smaller reporting company.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, an evaluation of the effectiveness of the design and operation of the our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) was performed under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2013 to ensure that information required to be disclosed in the reports it files and submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that information required to be disclosed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

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There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II.OTHER INFORMATION

Item 1. Legal Proceedings

There have been no material changes to the legal proceedings disclosure included in Part I, Item 3 (“Legal Proceedings”) of our Annual Report on Form 10-K for the year ended December 31, 2012.

Item 1A. Risk Factors

Except as set forth below, there have been no material changes in the Risk Factors described in Part I, Item 1A (“Risk Factors”) of our Annual Report on Form 10-K for the year ended December 31, 2012.

We were recently delisted from the Nasdaq Capital Market, which could result in a number of negative implications.

In July 2013, our common stock was delisted from the Nasdaq Capital Market. As a result, there could be a number of negative implications, including further reductions in our stock price, reduced liquidity in the common stock as a result of the loss of market efficiencies associated with a national securities exchange, the loss of federal preemption of state securities laws, the potential loss of confidence by suppliers, customers and employees, as well as the loss of analyst coverage and institutional investor interest, fewer business development opportunities and greater difficulty in obtaining financing.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4.      Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

10.1	Fifth Loan Modification Agreement (Domestic), dated June 12, 2013, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc. and Silicon Valley Bank.
10.2	Fifth Loan Modification Agreement (Exim), dated June 12, 2013, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc. and Silicon Valley Bank.
31.1	Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to §302 of the Sarbanes-Oxley Act of 2002.
31.2	Certificationof the Chief Financial Officer and Treasurer pursuant to §302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of the Chief Financial Officer and Treasurer pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Lable Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Spire Corporation
Dated:	August 13, 2013	By:	/s/ Roger G. Little
			Roger G. Little
			Chairman of the Board, Chief Executive Officer and President (Principal Executive Officer)
Dated:	August 13, 2013	By:	/s/ Robert S. Lieberman
			Robert S. Lieberman
			Chief Financial Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer)

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EXHIBIT INDEX

Exhibit	Description
10.1	Fifth Loan Modification Agreement (Domestic), dated June 12, 2013, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc. and Silicon Valley Bank.
10.2	Fifth Loan Modification Agreement (Exim), dated June 12, 2013, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc. and Silicon Valley Bank.
31.1	Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to §302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer and Treasurer pursuant to §302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of the Chief Financial Officer and Treasurer pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Lable Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

- 30-

EX-10.1

Exhibit 10.1

FIFTH LOAN MODIFICATION AGREEMENT

(Domestic)

This Fifth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of June 12, 2013, by and among (a) SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton, Massachusetts 02466 (“Bank”) and (b) SPIRE CORPORATION, a Massachusetts corporation, with its principal place of business at One Patriots Park, Bedford, Massachusetts 01730 (“Spire Corporation”), SPIRE SOLAR, INC.,a Massachusetts corporation, with its principal place of business at One Patriots Park, Bedford, Massachusetts 01730 (“Spire Solar”), and SPIRE BIOMEDICAL, INC., a Massachusetts corporation, with its principal place of business at One Patriots Park, Bedford, Massachusetts 01730 (“Spire Biomedical”) (Spire Corporation, Spire Solar and Spire Biomedical are jointly and severally, individually and collectively, “Borrower”).

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of November 16, 2009, evidenced by, among other documents, a certain Second Amended and Restated Loan and Security Agreement dated as of November 16, 2009, between Borrower and Bank, as amended by a certain First Loan Modification Agreement (Domestic) dated as of June 15, 2010, as further amended by a certain Second Loan Modification Agreement (Domestic) dated as of November 8, 2011, as further amended by a certain Third Loan Modification Agreement (Domestic) dated as of December 30, 2011, and as further amended by a certain Fourth Loan Modification Agreement (Domestic) dated as of December 20, 2012 (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.

2.DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as defined in the Loan Agreement (together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

3.DESCRIPTION OF CHANGE IN TERMS.

A. Modifications to Loan Agreement.

1 The Loan Agreement shall be amended by deleting the following, appearing as Section 6.7 thereof:

“    6.7Financial Covenant - Minimum Cash. Borrower shall maintain at all times, to be tested as of the last day of each month, unrestricted and unencumbered cash with Bank of at least One Million Five Hundred Thousand Dollars ($1,500,000.00).”

and inserting in lieu thereof the following:

“    6.7Financial Covenant. Borrower shall maintain at all times, to be tested as of the last day of each month: (a) up to an including May 31, 2013, unrestricted and unencumbered cash with Bank of at least One Million Five Hundred Thousand Dollars ($1,500,000.00); and (b) as of June 1, 2013 and thereafter, Liquidity of at least One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00).”

2 The Loan Agreement shall be amended by deleting the following definition, appearing in Section 13.1 thereof:

“    “Maturity Date” isJune 29, 2013.”

and inserting in lieu thereof the following:

“    “Maturity Date” isAugust 30, 2013.”

3 The Compliance Certificate appearing as Exhibit B to the Loan Agreement is hereby replaced with the Compliance Certificate attached as Schedule 1 hereto.

B. Waiver. Bank hereby waives Borrower's existing default under the Loan Agreement by virtue of Borrower's failure to comply with the financial covenant set forth in Section 6.7 of the Loan Agreement (relative to the requirement that Borrower maintain certain minimum unrestricted and unencumbered cash with Bank) for the month ended May 31, 2013. Bank's waiver of Borrower's compliance with such covenant shall apply only to the foregoing specific period.

4. FEES. Borrower shall pay to Bank a modification fee equal to One Thousand Six Hundred Sixty Six Dollars ($1,666.00), which fee shall be due on the date hereof and shall be deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents.

5.RATIFICATION OF PERFECTION CERTIFICATES.

(a)    Spire Corporation hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of June 22, 2009, delivered by Spire Corporation to Bank, and acknowledges, confirms and agrees the disclosures and information Spire Corporation provided to Bank in such Perfection Certificate have not changed, as of the date hereof.

(b)    Spire Solar hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of June 22, 2009, delivered by Spire Solar to Bank, and acknowledges, confirms and agrees the disclosures and information Spire Solar provided to Bank in such Perfection Certificate have not changed, as of the date hereof.

(c)    Spire Biomedical hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of June 22, 2009, delivered by Spire Biomedical to Bank, and acknowledges, confirms and agrees the disclosures and information Spire Biomedical provided to Bank in such Perfection Certificate have not changed, as of the date hereof.

6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.

7.RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.

8.NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.

9.CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower's representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank's agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement.

10.COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank.

This Loan Modification Agreement is executed as a sealed instrument under the laws of the Commonwealth of Massachusetts as of the date first written above.

BORROWER:
	SPIRE CORPORATION
By:	/s/ Roger G. Little	By:	/s/ Robert S. Lieberman
Name:	Roger G. Little	Name:	Robert S. Lieberman
Title:	Chairman & CEO	Title:	CFO and Treasurer
	SPIRE SOLAR, INC
By:	/s/ Roger G. Little	By:	/s/ Robert S. Lieberman
Name:	Roger G. Little	Name:	Robert S. Lieberman
Title:	Chairman & CEO	Title:	CFO and Treasurer
	SPIRE BIOMEDICAL,INC
By:	/s/ Roger G. Little	By:	/s/ Robert S. Lieberman
Name:	Roger G. Little	Name:	Robert S. Lieberman
Title:	Chairman & CEO	Title:	CFO and Treasurer

BANK:
	SILICON VALLEY BANK
By:	/s/ Karen Sperling
Name:	Karen Sperling
Title:	Vice President

Schedule 1

EXHIBIT B

SPECIALTY FINANCE DIVISION

Compliance Certificate

I, an authorized officer of SPIRE CORPORATION, SPIRE SOLAR, INC. and SPIRE BIOMEDICAL, INC. (jointly and severally, individually and collectively, “Borrower”) certify under the Second Amended and Restated Loan and Security Agreement (as amended, the “Agreement”) between Borrower and Silicon Valley Bank (“Bank”) as follows for the period ending _____________________________ (all capitalized terms used herein shall have the meaning set forth in the Agreement):

Borrower represents and warrants for each Financed Receivable:

Each Financed Receivable is an Eligible Account;

Borrower is the owner with legal right to sell, transfer, assign and encumber such Financed Receivable;

The correct amount is on the Advance Request and Invoice Transmittal and is not disputed;

Payment is not contingent on any obligation or contract and Borrower has fulfilled all its obligations as of the Advance Request and Invoice Transmittal date;

Each Financed Receivable is based on an actual sale and delivery of goods and/or services rendered, is due to Borrower, is not past due or in default, has not been previously sold, assigned, transferred, or pledged and is free of any liens, security interests and encumbrances other than Permitted Liens;

There are no defenses, offsets, counterclaims or agreements for which the Account Debtor may claim any deduction or discount;

It reasonably believes no Account Debtor is insolvent or subject to any Insolvency Proceedings;

It has not filed or had filed against it Insolvency Proceedings and does not anticipate any filing;

Bank has the right to endorse and/or require Borrower to endorse all payments received on Financed Receivables and all proceeds of Collateral; and

No representation, warranty or other statement of Borrower in any certificate or written statement given to Bank contains any untrue statement of a material fact or omits to state a material fact necessary to make the statement contained in the certificates or statement not misleading.

Additionally, Borrower represents and warrants as follows:

Borrower and each Subsidiary is duly existing and in good standing in its state of formation and qualified and licensed to do business in, and in good standing in, any state in which the conduct of its business or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to cause a Material Adverse Change. The execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict with Borrower's organizational documents, nor constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which or by which it is bound in which the default could reasonably be expected to cause a Material Adverse Change.

Borrower has good title to the Collateral, free of Liens except Permitted Liens. All inventory is in all material respects of good and marketable quality, free from material defects.

Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower's or any Subsidiary's properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower's knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Borrower and each Subsidiary has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP. Borrower and each Subsidiary has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted except where the failure to obtain or make such consents, declarations, notices or filings would not reasonably be expected to cause a Material Adverse Change.

Borrower is in compliance with the financial covenant set forth in Section 6.7 of the Agreement.

All other representations and warranties in the Agreement are true and correct in all material respects on this date, and Borrower represents that there is no existing Event of Default.

Financial Covenant

Required ActualCompliance

Liquidity            >$1,250,000      $ ______        Yes No

Streamline Facility Eligibility

RequiredActualEligible

Liquidity            >$2,500,000     $_____            Yes No

Sincerely,

SPIRE CORPORATION

SPIRE SOLAR, INC.

SPIRE BIOMEDICAL, INC.

________________________

Signature

________________________

Title

________________________

Date

EX-10.2

Exhibit 10.2

FIFTH LOAN MODIFICATION AGREEMENT

(Exim)

This Fifth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of June 12, 2013, by and among (a) SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton, Massachusetts 02466 (“Bank”) and (b) SPIRE CORPORATION, a Massachusetts corporation, with its principal place of business at One Patriots Park, Bedford, Massachusetts 01730 (“Spire Corporation”), SPIRE SOLAR, INC.,a Massachusetts corporation, with its principal place of business at One Patriots Park, Bedford, Massachusetts 01730 (“Spire Solar”),and SPIRE BIOMEDICAL, INC., a Massachusetts corporation, with its principal place of business at One Patriots Park, Bedford, Massachusetts 01730 (“Spire Biomedical”), (Spire Corporation, Spire Solar and Spire Biomedical are jointly and severally, individually and collectively, “Borrower”).

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of November 16, 2009, evidenced by, among other documents, a certain Amended and Restated Export-Import Bank Loan and Security Agreement dated as of November 16, 2009, between Borrower and Bank, as amended by a certain First Loan Modification Agreement (Exim) dated as of June 15, 2010, as further amended by a certain Second Loan Modification Agreement (Exim) dated as of November 8, 2011, as further amended by a certain Third Loan Modification Agreement (Exim) dated as of December 30, 2011, and as further amended by a certain Fourth Loan Modification Agreement (Exim) dated as of December 20, 2012 (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.

2.DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as defined in the Loan Agreement (together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

3.DESCRIPTION OF CHANGE IN TERMS.

A. Modifications to Loan Agreement.

1 The Loan Agreement shall be amended by deleting the following definition, appearing in Section 13.1 thereof:

“    “Maturity Date” is June 29, 2013.”

and inserting in lieu thereof the following:

“    “Maturity Date” isAugust 30, 2013.”

2 The Compliance Certificate appearing as Exhibit B to the Loan Agreement is hereby replaced with the Compliance Certificate attached as Schedule 1 hereto.

4.FEES. Borrower shall pay to Bank a modification fee equal to One Thousand One Hundred Seventy Two Dollars ($1,172.00), which fee shall be due on the date hereof and shall be deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents.

5.RATIFICATION OF PERFECTION CERTIFICATES.

(a)    Spire Corporation hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of June 22, 2009, delivered by Spire Corporation to Bank, and acknowledges, confirms and agrees the disclosures and information Spire Corporation provided to Bank in such Perfection Certificate have not changed, as of the date hereof.

(b)    Spire Solar hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of June 22, 2009, delivered by Spire Solar to Bank, and acknowledges, confirms and agrees the disclosures and information Spire Solar provided to Bank in such Perfection Certificate have not changed, as of the date hereof.

(c)    Spire Biomedical hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of June 22, 2009, delivered by Spire Biomedical to Bank, and acknowledges, confirms and agrees the disclosures and information Spire Biomedical provided to Bank in such Perfection Certificate have not changed, as of the date hereof.

6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.

7.RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.

8.NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.

9.CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower's representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank's agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement.

10.COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank.

This Loan Modification Agreement is executed as a sealed instrument under the laws of the Commonwealth of Massachusetts as of the date first written above.

BORROWER:
	SPIRE CORPORATION
By:	/s/ Roger G. Little	By:	/s/ Robert S. Lieberman
Name:	Roger G. Little	Name:	Robert S. Lieberman
Title:	Chairman & CEO	Title:	CFO and Treasurer
	SPIRE SOLAR, INC
By:	/s/ Roger G. Little	By:	/s/ Robert S. Lieberman
Name:	Roger G. Little	Name:	Robert S. Lieberman
Title:	Chairman & CEO	Title:	CFO and Treasurer
	SPIRE BIOMEDICAL,INC
By:	/s/ Roger G. Little	By:	/s/ Robert S. Lieberman
Name:	Roger G. Little	Name:	Robert S. Lieberman
Title:	Chairman & CEO	Title:	CFO and Treasurer

BANK:
	SILICON VALLEY BANK
By:	/s/ Karen Sperling
Name:	Karen Sperling
Title:	Vice President

Schedule 1

EXHIBIT B

SPECIALTY FINANCE DIVISION

Compliance Certificate

I, an authorized officer of SPIRE CORPORATION, SPIRE SOLAR, INC. and SPIRE BIOMEDICAL, INC. (jointly and severally, individually and collectively, “Borrower”) certify under the Amended and Restated Export-Import Bank Loan and Security Agreement (as amended, the “Exim Agreement”) between Borrower and Silicon Valley Bank (“Bank”) as follows for the period ending _____________________________ (all capitalized terms used herein shall have the meaning set forth in the Exim Agreement):

Borrower represents and warrants for each Financed Receivable (other than Financed Receivables based upon Exim Inventory Placeholder Invoices):

Each Financed Receivable is an Eligible Foreign Account;

Borrower is the owner with legal right to sell, transfer, assign and encumber such Financed Receivable;

The correct amount is on the Advance Request and Invoice Transmittal and is not disputed;

Payment is not contingent on any obligation or contract and Borrower has fulfilled all its obligations as of the Advance Request and Invoice Transmittal date;

Each Financed Receivable is based on an actual sale and delivery of goods and/or services rendered, is due to Borrower, is not past due or in default, has not been previously sold, assigned, transferred, or pledged and is free of any liens, security interests and encumbrances other than Permitted Liens;

There are no defenses, offsets, counterclaims or agreements for which the Account Debtor may claim any deduction or discount;

It reasonably believes no Account Debtor is insolvent or subject to any Insolvency Proceedings;

It has not filed or had filed against it Insolvency Proceedings and does not anticipate any filing;

Bank has the right to endorse and/or require Borrower to endorse all payments received on Financed Receivables and all proceeds of Collateral;

No representation, warranty or other statement of Borrower in any certificate or written statement given to Bank contains any untrue statement of a material fact or omits to state a material fact necessary to make the statement contained in the certificates or statement not misleading. All statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing the Financed Receivable are and shall be true and correct and all such invoices, instruments and other documents, and all of Borrower's Books are genuine and in all respects what they purport to be;

All sales and other transactions underlying or giving rise to each Financed Receivable shall comply in all material respects with all applicable laws and governmental rules and regulations; and

To the best of Borrower's knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to each Financed Receivable are genuine, and all such documents, instruments and agreements are legally enforceable in accordance with their terms.

Additionally, Borrower represents and warrants as follows:

Borrower and each Subsidiary is duly existing and in good standing in its state of formation and qualified and licensed to do business in, and in good standing in, any state in which the conduct of its business or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to cause a Material Adverse Change. The execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict with Borrower's organizational documents, nor constitute an event of default under any material agreementby which Borrower is bound. Borrower is not in default under any agreementto which or by which it is bound in which the default could reasonably be expected to cause a Material Adverse Change.

Borrower has good title to the Collateral, free of Liens except Permitted Liens. All inventory is in all material respects of good and marketable quality, free from material defects.

Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower's or any Subsidiary's properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower's knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Borrower and each Subsidiary has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP. Borrower and each Subsidiary has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted except where the failure to obtain or make such consents, declarations, notices or filings would not reasonably be expected to cause a Material Adverse Change.

With respect to Exim Inventory Placeholder Invoices, Borrower represents and warrants that all of Borrower's Inventory which is the subject of any Exim Inventory Placeholder Invoice is and will continue to be Eligible Export-Related Inventory.

The undersigned represents and warrants that as of the date hereof the foregoing is true, complete and correct, that the information reflected in this Compliance Certificate complies with the representations and warranties set forth in the Exim Agreement and the Borrower Agreement dated December 20, 2012, as may be amended, modified, restated, replaced or supplemented from time to time, as if all representations and warranties were made as of the date hereof, and that Borrower is, and shall remain, in full compliance with its agreements, covenants, and obligations under such agreements. Such representations and warranties include, without limitation, the following: Borrower is using disbursements only for the purpose of enabling Borrower to finance the cost of manufacturing, purchasing or selling items intended for export. Borrower is not using disbursements for the purpose of: (a) servicing any of Borrower's unrelated pre-existing or future indebtedness; (b) acquiring fixed assets or capital goods for the use of Borrower's business; (c) acquiring, equipping, or renting commercial space outside the United States; or (d) paying salaries of non-U.S. citizens or non-U.S. permanent residents who are located in the offices of the United States. Additionally, disbursements are not being used to finance the manufacture, purchase or sale of all of the following: (a) Items to be sold to a buyer located in a country in which the Export Import Bank of the United States is legally prohibited from doing business; (b) that part of the cost of the items which is not U.S. Content unless such part is not greater than fifty percent (50.0%) of the cost of the items and is incorporated into the items in the United States; (c) defense articles or defense services or items directly or indirectly destined for use by military organizations designed primarily for military use (regardless of the nature or actual use of the items); or (d) any items to be used in the construction, alteration, operation or maintenance of nuclear power, enrichment, reprocessing, research or heavy water production facilities.

All other representations and warranties in the Exim Agreement are true and correct in all material respects on this date, and Borrower represents that there is no existing Event of Default.

Streamline Facility Eligibility

RequiredActualEligible

Liquidity            >$2,500,000         $_____        Yes No

Sincerely,

SPIRE CORPORATION

SPIRE SOLAR, INC.

SPIRE BIOMEDICAL, INC.

________________________

Signature

________________________

Title

________________________

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

§302 OF THE SARBANES-OXLEY ACT OF 2002

I, Roger G. Little, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Spire Corporation.

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 is being 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 assurances 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 functions):

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 internal control over financial reporting.

Dated:	August 13, 2013	By:	/s/ Roger G. Little
			Roger G. Little
			Chairman of the Board Chief Executive Office and President

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

§302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert S. Lieberman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Spire Corporation.

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 is being 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 assurances 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 functions):

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 internal control over financial reporting.

Dated:	August 13, 2013	By:	/s/ Robert S. Lieberman
			Robert S. Lieberman
			Chief Financial Officer and Treasurer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. §1350, AS ADOPTED

PURSUANT TO §906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Spire Corporation (the “Company”) on Form 10-Q (the “Report”) for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof, I, Roger G. Little, Chairman of the Board, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(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 the Company.

Dated:	August 13, 2013	By:	/s/ Roger G. Little
			Roger G. Little
			Chairman of the Board Chief Executive Office and President

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. §1350, AS ADOPTED

PURSUANT TO §906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Spire Corporation (the “Company”) on Form 10-Q (the “Report”) for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof, I, Robert S. Lieberman, Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(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 the Company.

Dated:	August 13, 2013	By:	/s/ Robert S. Lieberman
			Robert S. Lieberman
			Chief Financial Officer and Treasurer

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Share-based Compensation

6 Months Ended

Jun. 30, 2013

Stock based Compensation and Stock Option Plan [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Share-Based Compensation

The Company has recognized share-based compensation expense from continuing operations of approximately $41 thousand and $66 thousand for the three months ended June 30, 2013 and 2012, respectively. The Company has recognized share-based compensation expense from continuing operations of approximately $77 thousand and $121 thousand for the six months ended June 30, 2013 and 2012, respectively. The total non-cash, share-based compensation expense from continuing operations included in the unaudited condensed consolidated statements of operations for the periods presented is included in the following expense categories:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Cost of contract research, services	$	5	$	6	$	10	$	10
Cost of goods sold	4		10		7		25
Administrative and selling	32		50		60		86
Total share-based compensation	$	41	$	66	$	77	$	121

There was no share-based compensation expense from discontinued operations for the three and six months ended June 30, 2013. Share-based compensation expense from discontinued operations was zero and $(7) thousand for the three and six months ended June 30, 2012, respectively. No share-based compensation expense was capitalized during the six months ended June 30, 2013 and 2012. Compensation expense related to stock options to be charged in future periods amounts to approximately $52 thousand at June 30, 2013 and will be recognized over a weighted-average period of 1.08 years as follows:

For the years ended December 31,	Expected Compensation Expense
	(in thousands)
2013	$	48
2014	4
	$	52

The Company estimates forfeitures at the time of grant and revises, if necessary, in subsequent periods if actual forfeitures differ from those estimates in order to derive the Company’s best estimate of awards ultimately expected to vest.  Forfeitures represent only the unvested portion of a surrendered option and are typically estimated based on historical experience.

At June 30, 2013, the Company had outstanding options under two option plans: the 1996 Equity Incentive Plan (the “1996 Plan”) and the 2007 Stock Equity Plan (the “2007 Plan”, together the “Plans”).  Both Plans were approved by stockholders and provided that the Board of Directors may grant options to purchase the Company’s common stock to key employees and directors of the Company.  Incentive and non-qualified options must be granted at least at the fair market value of the common stock or, in the case of certain optionees, at 110% of such fair market value at the time of grant. The options may be exercised, subject to certain vesting requirements, for periods up to ten years from the date of issue.  The 1996 Plan expired with respect to the issuance of new grants as of December 10, 2006.  Accordingly, future grants may be made only under the 2007 Plan.

A summary of options outstanding under the Plans as of June 30, 2013 and changes during the six month period ended June 30, 2013 is as follows:

	Number of Shares		Weighted-Average Exercise Price		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (in thousands)
Options Outstanding at December 31, 2012	644,446		$	6.21
Granted	18,000		$	0.58
Exercised	—		$	—
Cancelled/expired	(2,000	)	$	4.32
Options outstanding at June 30, 2013	660,446		$	6.06	5.46	$	1
Options vested and exercisable at June 30, 2013	621,071		$	6.18	5.35	$	1
Option vested and expected to vest at June 30, 2013	658,609		$	6.17	5.35	$	—
Options available for future grant at June 30, 2013	391,059

The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $0.56 as of June 30, 2013, which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised was approximately zero and zero for the six months ended June 30, 2013 and 2012, respectively. The total intrinsic value of options expected to vest at June 30, 2013 was approximately zero, and the weighted average remaining contractual life of outstanding options that are expected to vest is 5.31 years.

Year	Expected Dividend Yield	Risk-Free Interest Rate	Expected Option Life	Expected Volatility Factor
2013	—	0.77%	5.1 years	99.7%
2012	—	0.96%	5.1 years	87.8%

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Discontinued Operations and Assets Held for Sale Discontinued Operation Narrative(Details) (USD $)	3 Months Ended		6 Months Ended		0 Months Ended		3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 14, 2009 Medical Products Business Unit [Member]	Mar. 09, 2012 Semiconductor Business Unit [Member]	Mar. 31, 2012 Semiconductor Business Unit [Member]	Jun. 30, 2013 Semiconductor Business Unit [Member]	Jun. 30, 2012 Semiconductor Business Unit [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Date					Dec. 14, 2009	Mar. 09, 2012
Business Divestiture, Sale Price						$ 8,000,000
Proceeds from Divestiture of Businesses							7,300,000
Restricted Cash and Cash Equivalents, Noncurrent							718,000
Business Divestiture, Sale Price Allocation, Liabilities Assume						500,000	1,200,000
Business Divestiture, Cost of Divisiture Entity, Transaction Costs							425,000
Loss from discontinued operations before sale of business unit	$ 0	$ 0	$ 0	$ (430,000)				$ 0	$ (430,000)

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Consolidated Statement of Operation Statement (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net sales and revenues
Sales of goods	$ 1,467	$ 4,449	$ 2,437	$ 9,938
Contract research and service revenues	2,107	2,171	4,375	4,157
Total net sales and revenues	3,574	6,620	6,812	14,095
Cost of sales and revenues
Cost of goods sold	1,902	4,134	3,693	8,422
Cost of contract research and services	1,159	1,240	2,381	2,474
Total cost of sales and revenues	3,061	5,374	6,074	10,896
Gross margin	513	1,246	738	3,199
Operating expenses
Selling, general and administrative expenses	2,271	2,940	5,085	6,404
Internal research and development expenses	10	93	23	191
Total operating expenses	2,281	3,033	5,108	6,595
Operating loss from continuing operations	(1,768)	(1,787)	(4,370)	(3,396)
Interest expense, net	(13)	(36)	(29)	(67)
Foreign exchange gain (loss)	(1)	1	(9)	3
Total other expense, net	(14)	(35)	(38)	(64)
Loss from continuing operations before income tax benefit (provision)	(1,782)	(1,822)	(4,408)	(3,460)
Income tax benefit (provision) - continuing operations	0	0	(2)	1,992
Loss from continuing operations	(1,782)	(1,822)	(4,410)	(1,468)
Loss from discontinued operations before sale of business unit	0	0	0	(430)
Gain on sale of business unit, net of transaction expenses	0	0	0	5,449
Income tax provision - discontinued operations	0	0	0	2,008
Income from discontinued operations, net of tax	0	0	0	3,011
Net income (loss)	$ (1,782)	$ (1,822)	$ (4,410)	$ 1,543
Basic income (loss) per share:
From continuing operations, net of tax	$ (0.19)	$ (0.21)	$ (0.48)	$ (0.17)
From discontinued operations, net of tax	$ 0.00	$ 0.00	$ 0.00	$ 0.35
Basic income (loss) per share	$ (0.19)	$ (0.21)	$ (0.48)	$ 0.18
Diluted income (loss) per share:
From continuing operations, net of tax	$ (0.19)	$ (0.21)	$ (0.48)	$ (0.17)
From discontinued operations, net of tax	$ 0.00	$ 0.00	$ 0.00	$ 0.35
Diluted income (loss) per share	$ (0.19)	$ (0.21)	$ (0.48)	$ 0.18
Weighted average number of common and common equivalent shares outstanding – basic	9,207,874	8,562,633	9,144,482	8,562,633
Weighted average number of common and common equivalent shares outstanding – diluted	9,207,874	8,562,633	9,144,482	8,562,633

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Inventories and Deferred Costs of Goods Sold

3 Months Ended

Jun. 30, 2013

Inventories and Deferred Costs of Goods Sold [Abstract]

Inventory and Deferred Costs of Goods Sold [Text Block]

Inventories and Deferred Costs of Goods Sold

Inventories, net of $1.0 million and $860 thousand of reserves at June 30, 2013 and December 31, 2012, respectively, and deferred cost of goods sold consist of the following at: 

(in thousands)	June 30, 2013		December 31, 2012
Raw materials	$	1,524	$	1,784
Work in process	2,086		2,103
Finished goods	1,356		1,429
Net inventory	$	4,966	$	5,316
Deferred cost of goods sold	$	92	$	185

The Company wrote-off $29 thousand of excess and obsolete inventory for the six months ended June 30, 2012 and had no write-offs for the six months ended June 30, 2013.

Deferred cost of goods sold represents costs of equipment that has shipped to the customer and title has passed but not all revenue recognition criteria have yet been met.  The Company defers these costs until the related revenue is recognized.

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Operating Segments and Related Information (Tables)

6 Months Ended

Jun. 30, 2013

Operating Segments and Related Information [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table presents certain continuing operating division information in accordance with the provisions of ASC 280, Segments Reporting.

(in thousands)	Solar			Biomedical		Total Company
For the three months ended June 30, 2013
Net sales and revenues	$	1,892		$	1,682	3,574
Operating income (loss) from continuing operations	$	(1,938	)	$	170	(1,768		)
For the three months ended June 30, 2012
Net sales and revenues	$	4,881		$	1,739	6,620
Operating income (loss) from continuing operations	$	(1,999	)	$	212	(1,787		)
For the six months ended June 30, 2013
Net sales and revenues	$	3,338		$	3,474	$	6,812
Operating income (loss) from continuing operations	$	(4,730	)	$	360	$	(4,370	)
For the six months ended June 30, 2012
Net sales and revenues	$	10,734		$	3,361	$	14,095
Operating income (loss) from continuing operations	$	(3,543	)	$	147	$	(3,396	)

Revenues By Geography [Table Text Block]

The following table shows net sales and revenues by geographic area (based on customer location):

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2013		%		2012		%		2013		%		2012		%
United States	$	2,261	63	%	$	2,352	35	%	$	4,534	66	%	$	4,949	35	%
Europe/Africa	454		13		444		7		790		12		2,686		19
Asia	662		19		3,824		58		1,271		19		6,407		46
Rest of the world	197		5		—		—		217		3		53		—
	$	3,574	100	%	$	6,620	100	%	$	6,812	100	%	$	14,095	100	%

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Accumulated Other Comprehensive Income (Notes)

6 Months Ended

Jun. 30, 2013

Accumulated Other Comprehensive Income [Abstract]

Comprehensive Income (Loss) Note [Text Block]

Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income balances by component for the three months ended June 30, 2013 consist of the following:

(in thousands)	Unrealized Gains (Losses) on Available for Sale Securities
Balance, December 31, 2012	$	222
Other comprehensive income before reclassification	162
Amounts reclassified from accumulated other comprehensive income	(55		)
Net current-period other comprehensive income	107
Balance, June 30, 2013	$	329

Reporting reclassifications out of accumulated other comprehensive income for the three months ended June 30, 2013 consist of the following:

Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income (in thousands)			Affected Line Item in the Statement Where Net Income is Resented
Unrealized gains (losses) on available-for-sale investments	$	(55	)	Selling, general and administrative expenses

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Share-based Compensation Stock Option Plan Additional Information (Details)	6 Months Ended
	Jun. 30, 2013 optionplans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Optin Plans	2
Percentage of Fair Market Value	110.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Contractual Term	10 years

XML

Operating Segments and Related Information Narrative Revenue (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Concentration Risk, Government Contracts	197	448	643	872
Government Contracts Concentration Risk [Member]
Segment Reporting Information [Line Items]
Concentration Risk, Percentage	6.00%	7.00%	9.00%	6.00%
Solar Equipment [Member]
Segment Reporting Information [Line Items]
The Number of Major Customers That Account for 10% or Greater of the Company's Revenue		2		4
Solar Equipment [Member] | Customer B [Member]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage		22.00%		10.00%
Solar Equipment [Member] | Customer J [Member]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage				13.00%
Solar Equipment [Member] | Customer K [Member]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage		13.00%		13.00%
Solar Equipment [Member] | Customer R [Member]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage				13.00%
Biomedical Service [Member]
Segment Reporting Information [Line Items]
The Number of Major Customers That Account for 10% or Greater of the Company's Revenue	2	1	2	1
Biomedical Service [Member] | Customer A [Member]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	11.00%		13.00%
Biomedical Service [Member] | Customer C [Member]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	20.00%	12.00%	21.00%	11.00%

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Share-based Compensation (Tables)

6 Months Ended

Jun. 30, 2013

Stock based Compensation and Stock Option Plan [Abstract]

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

The Company has recognized share-based compensation expense from continuing operations of approximately $77 thousand and $121 thousand for the six months ended June 30, 2013 and 2012, respectively. The total non-cash, share-based compensation expense from continuing operations included in the unaudited condensed consolidated statements of operations for the periods presented is included in the following expense categories:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Cost of contract research, services	$	5	$	6	$	10	$	10
Cost of goods sold	4		10		7		25
Administrative and selling	32		50		60		86
Total share-based compensation	$	41	$	66	$	77	$	121

There was no share-based compensation expense from discontinued operations for the three and six months ended June 30, 2013. Share-based compensation expense from discontinued operations was zero and $(7) thousand for the three and six months ended June 30, 2012, respectively. No share-based compensation expense was capitalized during the six months ended June 30, 2013 and 2012. Compensation expense related to stock options to be charged in future periods amounts to approximately $52 thousand at June 30, 2013 and will be recognized over a weighted-average period of 1.08 years as follows:

For the years ended December 31,	Expected Compensation Expense
	(in thousands)
2013	$	48
2014	4
	$	52

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block]

A summary of options outstanding under the Plans as of June 30, 2013 and changes during the six month period ended June 30, 2013 is as follows:

	Number of Shares		Weighted-Average Exercise Price		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (in thousands)
Options Outstanding at December 31, 2012	644,446		$	6.21
Granted	18,000		$	0.58
Exercised	—		$	—
Cancelled/expired	(2,000	)	$	4.32
Options outstanding at June 30, 2013	660,446		$	6.06	5.46	$	1
Options vested and exercisable at June 30, 2013	621,071		$	6.18	5.35	$	1
Option vested and expected to vest at June 30, 2013	658,609		$	6.17	5.35	$	—
Options available for future grant at June 30, 2013	391,059

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Fair Value Measurements Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Measurements [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The following table presents the financial instruments related to the Company’s available-for-sale investment carried at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 by ASC 820-10 valuation hierarchy (as defined above).

(in thousands)	Balance as of June 30, 2013			Level 1			Level 2			Level 3
Cash and short term investments	$	70		$	70		$	—		$	—
Common stock
Basic Materials	28			28			—			—
Consumer Goods	126			126			—			—
Energy	124			124			—			—
Financial	114			114			—			—
Healthcare	140			140			—			—
Industrial Goods	141			141			—			—
Services	54			54			—			—
Technology	607			607			—			—
Transportation	9			9			—			—
Utilities	16			16			—			—
Total Common Stock	1,359			1,359			—			—
Mutual Fund
Diversified Emerging Markets	230			—			230			—
Foreign Large Blend	239			—			239			—
Foreign Large Growth	233			—			233			—
Large Growth	232			—			232			—
Small Blend	279			279			—			—
Global High Yield Income Fund	52			—			52			—
Total Mutual Fund	1,265			279			986			—
Fixed Income
Domestic	466			—			466			—
International	51			—			51			—
Total Fixed Income	517			—			517			—
Total available-for-sale investments (1)	$	3,211		$	1,708		$	1,503		$	—
Percent of total	100		%	53		%	47		%	—		%

(in thousands)	Balance as of December 31, 2012			Level 1			Level 2			Level 3
Cash and short term investments	$	32		$	32		$	—		$	—
Common Stock
Basic Materials	15			15			—			—
Consumer Goods	58			58			—			—
Energy	29			29			—			—
Financial	61			61			—			—
Healthcare	52			52			—			—
Industrial Goods	51			51			—			—
Services	32			32			—			—
Technology	376			376			—			—
Transportation	8			8			—			—
Utilities	26			26			—			—
Total Common Stock	708			708			—			—
Mutual Fund
Diversified Emerging Markets	187			—			187			—
Precious Metals Fund	49			—			49			—
Foreign Large Blend	244			—			244			—
Foreign Large Growth	250			—			250			—
Large Growth	220			—			220			—
Small Blend Total	525			525			—			—
Global High Yield Income Fund	52			—			52			—
Total Mutual Funds	1,527			525			1,002			—
Fixed Income
Domestic	678			—			678			—
International	18			—			18			—
Total Fixed Income	696			—			696			—
Total available for-sale-investments (1)	$	2,963		$	1,265		$	1,698		$	—
Percent of total	100		%	43		%	57		%	—		%

⁽¹⁾  Changes in the fair value of available-for-sale investments are recorded in accumulated other comprehensive income, a component of stockholders’ equity, in the Company’s unaudited condensed consolidated balance sheets.

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Notes Payable and Credit Arrangements Line of Credit Additional Information (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Line of Credit Facility [Line Items]
Guidence Line, Utilized	$ 160	$ 675
Line of Credit Facility, Remaining Borrowing Capacity	322
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding	556	449
Line of Credit Facility, Interest Rate at Period End	6.50%
Ex-Im Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding	$ 33	$ 141
Line of Credit Facility, Interest Rate at Period End	6.50%

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Inventories and Deferred Costs of Goods Sold (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Raw materials	$ 1,524		$ 1,784
Work in process	2,086		2,103
Finished goods	1,356		1,429
Net inventory	4,966		5,316
Inventory Valuation Reserves	1,000		860
Deferred cost of goods sold	92		185
Inventory write-off	$ 0	$ 29

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Intangible and Other Assets Intangible Asset Narrative (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 Patents [Member]	Dec. 31, 2012 Patents [Member]	Jun. 30, 2013 Licenses [Member]	Dec. 31, 2012 Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	$ 251		$ 251		$ 86	$ 111	$ 58	$ 60
Finite-Lived Intangible Assets, Accumulated Amortization					847	822	17	15
Amortization of Intangible Assets	14	27	27	40
Pending Patent	$ 107		$ 107
Finite-Lived Intangible Asset, Useful Life			5 years

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Share-based Compensation Stock Option Activity (Details) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing stock price per share	$ 0.56
Weighted-Average Exercise Price [Roll Forward]
Weighted-Average Exercise Price, Begining balance	$ 6.21
Weighted-Average Exercise Price, Granted	$ 0.58
Weighted-Average Excercise Price, Exercised	$ 0.00
Weighted-Average Exercise Price, Cancelled/expired	$ 4.32
Weighted-Average Exercise Price, Ending balance	$ 6.06
Weighted-Average Excercise Price, Exercisable at the end of period	$ 6.18
Weighted-Average Excercise Price, Vested and expected to vest at the end of period	$ 6.17
Aggregate Intrinsic Value [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	0
Share-based Compensation Arrangement be Share-based Payment Award, Options, Outstanding, Expected to Vest, Weighted Average Remaining Contractual Life	5 years 3 months 22 days
Stock Options [Member]
Number of Shares [Roll Forward]
Stock Options Number of Shares, Begining balance	644,446
Stock Options Number of Shares, Granted	18,000
Stock Options Number of Shares, Exercised	0
Stock Options Number of Shares, Cancelled/expired	(2,000)
Stock Options Number of Shares, Ending balance	660,446
Stock Options Number of Shares, Exercisable at the end of the period	621,071
Stock Options Number of Shares, Vested and expected to vest at the end of period	658,609
Common Stock, Capital Shares Reserved for Future Issuance	391,059
Average Remaining Contractual Life (Years) [Abstract]
Average Remaining Contractual Life, Ending balance (in years)	5 years 5 months 15 days
Average Remaining Contractual Life, Exercisable (in years)	5 years 4 months 6 days
Average Remaining Contractual Life, Vested and expected to vest at the end of period (in years)	5 years 4 months 6 days
Aggregate Intrinsic Value [Abstract]
Aggregate Intrinsic Value, Outstanding at the ending period, Intrinsic Value	1,000
Aggregate Intrinsic Value, Exercisable at the ending period, Intrinsic Value	1,000
Aggregate Instrinsic Value, Option vested and expected to vest at the end of period, Intrinsic Value	$ 0

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Description of Business (Details) (USD $) In Thousands, unless otherwise specified	0 Months Ended		3 Months Ended		6 Months Ended				0 Months Ended
	Aug. 30, 2013	Jun. 29, 2013	Jun. 30, 2013 factories countries	Jun. 30, 2012	Jun. 30, 2013 factories countries	Jun. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Mar. 09, 2012 Semiconductor Business Unit [Member]	Dec. 14, 2009 Medical Products Business Unit [Member]
Number of Factories Which the Company's Equipment Has Been Installed			200		200
Number of Countries Which the Company's equipment has been installed			50		50
Disposal Date									Mar. 09, 2012	Dec. 14, 2009
Export Sales, Percentage			37.00%	65.00%	34.00%	65.00%
Operating Income (Loss) from continuing operations			$ (1,768)	$ (1,787)	$ (4,370)	$ (3,396)
Net cash provided by operating activities of discontinued operations					(150)	(1,724)
Net Cash Provided by (Used in) Operating Activities					(1,913)	(4,283)
Cash and Cash Equivalents			$ 1,735	$ 7,199	$ 1,735	$ 7,199	$ 3,030	$ 4,758
Line of Credit Facility, Expiration Date	Aug. 30, 2013	Jun. 29, 2013

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Available-for-Sale Investments (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Accumulated other comprehensive income	$ 329		$ 222
Liabilities settled with common stock	$ 84	$ 0

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Intangible and Other Assets (Tables)

6 Months Ended

Jun. 30, 2013

Intangible and Other Assets [Abstract]

Schedule of Expected Amortization Expense [Table Text Block]

For disclosure purposes, the table below includes future amortization expense for patents and licenses owned by the Company as well as estimated amortization expense related to patents that remain pending at June 30, 2013 of $107 thousand. This estimated expense for patents pending assumes that the patents are issued immediately, and therefore are being amortized over five years on a straight-line basis. Estimated amortization expense for the periods ending December 31, is as follows: 

(in thousands)	Amortization Expense
2013 remaining 6 months	$	38
2014	68
2015	44
2016	30
2017	27
2018	16
Thereafter	28
	$	251

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Consolidated Statements of Cash Flows Statement (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net income (loss)	$ (4,410)	$ 1,543
Less: Net Income from discontinued operations, net of tax	0	3,011
Loss from continuing operations	(4,410)	(1,468)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	243	410
Deferred tax benefit	0	(2,008)
Deferred compensation	107	109
Share-based Compensation	77	121
Provision for accounts receivable reserve	18	21
Provision for inventory reserve	175	192
Changes in assets and liabilities:
Restricted cash	0	21
Accounts receivable	666	1,133
Inventories	175	895
Deferred cost of goods sold	93	116
Deposits, prepaid expenses and other current assets	121	679
Accounts payable, accrued liabilities and other liabilities	834	(1,877)
Deposit - related party	0	300
Advances on contracts in progress	138	(1,203)
Net cash used in operating activities of continuing operations	(1,763)	(2,559)
Net cash provided by operating activities of discontinued operations	(150)	(1,724)
Net cash used in operating activities	(1,913)	(4,283)
Cash flows from investing activities:
Purchase of Property and Equipment	(58)	(100)
Additions to intangible and other assets	(35)	(11)
Net cash used in investing activities of continuing operations	(93)	(111)
Net cash provided by investing activities of discontinued operations	718	6,859
Net cash provided by investing activities	625	6,748
Cash flows from financing activities:
Principal payments on capital lease obligations	(6)	(24)
Principal Payments on Revolving Line of Credit, Net	1	0
Net cash used in financing activities	(7)	(24)
Net increase (decrease) in cash and cash equivalents	(1,295)	2,441
Cash and cash equivalents, beginning of period	3,030	4,758
Cash and cash equivalents, end of period	1,735	7,199
Supplemental disclosures of cash flow information:
Interest paid	29	67
Income Taxes Paid	1	5
Supplemental disclosure of non-cash flow information [Abstract]
Liabilities settled with common stock	$ 84	$ 0

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Interim Financial Statements

6 Months Ended

Jun. 30, 2013

Interim Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting.  Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto for the year ended December 31, 2012, included in the Company’s Annual Report on Form 10-K filed with the SEC.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present the Company’s financial position as of June 30, 2013 and December 31, 2012 and the results of its operations for the three and six months ended June 30, 2013 and 2012. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2013.  The unaudited condensed consolidated balance sheet as of December 31, 2012 has been derived from audited financial statements as of that date.  During the second quarter of 2009, the Company began pursing an exclusive sales process of its Medical Products Business Unit.  On December 14, 2009, the Company completed the sale of the Medical Products Business Unit to Bard. During the first quarter of 2012, the Company began pursing an exclusive sales process of its Semiconductor Business Unit and on March 9, 2012, the Company completed the sale of the Semiconductor Business Unit to Masimo.   Accordingly, the results of operations and assets and liabilities of the Semiconductor Business Unit and the liabilities of the Medical Products Business Unit are being presented herein as discontinued operations.  See Note 13 to the unaudited condensed consolidated financial statements.

Summary of Significant Accounting Policies

The significant accounting policies followed by the Company are set forth in Note 2 to the Company’s consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC.

New Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2013-11 ("ASU 2013-11"), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The update requires, unless certain conditions exists, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective prospectively for reporting periods beginning after December 15, 2013, with early adoption permitted. Retrospective application is permitted. The Company is currently evaluating the impact of ASU 2013-11 yet there are no uncertain tax positions included in the unaudited condensed consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-11 ("ASU 2011-11"), Disclosures about Offsetting Assets and Liabilities. The update requires companies to disclose information about financial instruments that have been offset and related arrangements to enable users of their financial statements to understand the effect of those arrangements on their financial position. Companies will be required to provide both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities that are offset. In January 2013, the FASB issued ASU No. 2013-01 (ASU 2013-01"), Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities. The update limits the scope of the offsetting disclosures required by ASU 2011-11. ASU 2011-11 and ASU 2013-01 is effective for interim and annual periods beginning after December 31, 2012. As the requirements of these ASUs relate only to disclosures, the application of the updates did not have a material impact on the Company's unaudited condensed consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-12 ("ASU 2011-12"), Comprehensive Income: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU 2011-12 deferred the effective date of the specific requirement to present items that are reclassified out of accumulated other comprehensive income to net income alongside their respective components of net income and other comprehensive income. As part of this update, the FASB did not defer the requirement to report comprehensive income in either a single continuous statement or in two separate but consecutive statements. In February 2013, the FASB issued ASU No. 2013-02 ("ASU 2013-02"), Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 is effective for interim and annual periods beginning after December 31, 2012. As ASU 2013-02 relates to disclosure requirements only, the application of this update did not have a material impact on the Company's unaudited condensed consolidated financial statements.

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Income (loss) Per Share

6 Months Ended

Jun. 30, 2013

Income (loss) Per Share [Abstract]

Earnings Per Share [Text Block]

Income (Loss) Per Share

The following table provides a reconciliation of the denominators of the Company’s reported basic and diluted income (loss) per share computations for the periods ended:

	Three Months Ended June 30,		Six Months Ended June 30,
	2013	2012	2013	2012
Weighted average number of common and common equivalent shares outstanding – basic	9,207,874	8,562,633	9,144,482	8,562,633
Add:  Net additional common shares upon assumed exercise of common stock options	—	—	—	—
Adjusted weighted average number of common and common equivalents shares outstanding – diluted	9,207,874	8,562,633	9,144,482	8,562,633

For the three and six months ended June 30, 2013, 3,554 and 4,375 shares of common stock, respectively, and for the three and six months ended June 30, 2012, 878 and 2,287 shares of common stock, respectively, issuable relative to stock options were excluded from the calculation of diluted shares because their inclusion would have been anti-dilutive, due to the Company’s net loss position.

In addition, for the three and six months ended June 30, 2013, 632,446 and 622,446 shares of common stock, respectively, and for the three and six months ended June 30, 2012, 668,446 and 658,446 shares of common stock, respectively, issuable relative to stock options were excluded from the calculation of diluted shares because their inclusion would have been anti-dilutive, due to the Company's net loss position and their exercise prices exceeding the average market price of the stock for the period.

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Accounts Receivable/Advances on Contracts in Progress

6 Months Ended

Jun. 30, 2013

Accounts Receivable and Advances on Contracts in Progress [Abstract]

Accounts Receivables and Advances on Contracts in Progress [Text Block]

Accounts Receivable/Advances on Contracts in Progress

Net accounts receivable, trade and advances on contracts in progress consists of the following:

(in thousands)	June 30, 2013			December 31, 2012
Amounts billed	$	1,265		$	1,927
Accrued revenue	234			238
Gross accounts receivable - trade	1,499			2,165
Less:  Allowance for doubtful accounts	(46		)	(28		)
Net accounts receivable - trade	$	1,453		$	2,137
Advances on contracts in progress	$	1,175		$	1,037

Accrued revenue represents revenues recognized on contracts for which billings have not been presented to customers as of the balance sheet date. These amounts are billed and generally collected within one year.

The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to pay amounts due. The Company actively pursues collection of past due receivables as the circumstances warrant. Customers are contacted to determine the status of payment and senior accounting and operations management are included in these efforts as is deemed necessary. A specific reserve will be established for past due accounts when it is probable that a loss has been incurred and the Company can reasonably estimate the amount of the loss. The Company does not record an allowance for government receivables and invoices backed by letters of credit as collection is reasonably assured. Bad debts are written off against the allowance when identified. There is no dollar threshold for account balance write-offs. While rare, a write-off is only recorded when all efforts to collect the receivable have been exhausted. The Company received payments of zero and $5 thousand for the six months ended June 30, 2013 and 2012, respectively, against amounts which had been previously reserved for in allowance for doubtful accounts.

Advances on contracts in progress represent billings that have been presented to the customer, as either deposits or progress payments against future shipments, but revenue has not been recognized.

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Intangible and Other Assets Estimated Future Amortization Expense Related to Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013
Expected Amortization Expense [Line Items]
2013 remaining 6 months	$ 38
2014	68
2015	44
2016	30
2017	27
2018	16
Thereafter	28
Finite-Lived Intangible Assets, Net	$ 251

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Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income (Tables)

6 Months Ended

Jun. 30, 2013

Other Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Changes in accumulated other comprehensive income balances by component for the three months ended June 30, 2013 consist of the following:

(in thousands)	Unrealized Gains (Losses) on Available for Sale Securities
Balance, December 31, 2012	$	222
Other comprehensive income before reclassification	162
Amounts reclassified from accumulated other comprehensive income	(55		)
Net current-period other comprehensive income	107
Balance, June 30, 2013	$	329

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Interim Financial Statements (Details)	0 Months Ended
	Mar. 09, 2012 Semiconductor Business Unit [Member]	Dec. 14, 2009 Medical Products Business Unit [Member]
Disposal Date	Mar. 09, 2012	Dec. 14, 2009

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Operating Segments and Related Information Net Sales and Revenues by Geographic Area (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenues	$ 3,574	$ 6,620	$ 6,812	$ 14,095
Revenue, Percentage	100.00%	100.00%	100.00%	100.00%
United States [Member]
Revenues	2,261	2,352	4,534	4,949
Revenue, Percentage	63.00%	35.00%	66.00%	35.00%
Europe / Africa [Member]
Revenues	454	444	790	2,686
Revenue, Percentage	13.00%	7.00%	12.00%	19.00%
Asia [Member]
Revenues	662	3,824	1,271	6,407
Revenue, Percentage	19.00%	58.00%	19.00%	46.00%
Rest of the World [Member]
Revenues	$ 197	$ 0	$ 217	$ 53
Revenue, Percentage	5.00%	0.00%	3.00%	0.00%

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Discontinued Operations and Assets Held for Sale Discontinued Business Unit Operations (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations before sale of business unit	$ 0	$ 0	$ 0	$ (430)
Gain on sale of business unit, net of transaction expenses	0	0	0	5,449
Income tax provision	0	0	0	(2,008)
Income from discontinued operations, net of tax	0	0	0	3,011
Medical Products and Semiconductor Business Unit [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales and revenues	0	0	0	425
Gross margin	0	0	0	(296)
Loss from discontinued operations before sale of business unit	0	0	0	(430)
Gain on sale of business unit, net of transaction expenses	0	0	0	5,449
Income tax provision	0	0	0	(2,008)
Income from discontinued operations, net of tax	$ 0	$ 0	$ 0	$ 3,011

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Share-based Compensation Stock Based Plans Valuation Assumptions (Details) (Stock Options [Member])	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Stock Options [Member]
Expected Dividend Yield	0.00%	0.00%
Risk Free Interest Rate	0.77%	0.96%
Expected Option Life	5 years 1 month 16 days	5 years 1 month 16 days
Expected Volatility Factor	99.70%	87.80%

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Notes Payable and Credit Arrangements Credit Facilitiy Term Disclosure (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended
	Aug. 30, 2013	Jun. 29, 2013	Dec. 30, 2011 CreditFacilities	Jun. 30, 2013 Credit Agreement [Member]	Jun. 30, 2013 Credit Agreement [Member] Revolving Credit Facility [Member]	Jun. 30, 2013 Credit Agreement [Member] Ex-Im Facility [Member]	Jun. 30, 2013 Accounts Receivable [Member] Credit Agreement [Member] Revolving Credit Facility [Member]	Jun. 30, 2013 Eligible receivables [Member] Credit Agreement [Member] Ex-Im Facility [Member]	Jun. 30, 2013 Other eligible receivales billed in foreign currenc [Member] Credit Agreement [Member] Ex-Im Facility [Member]	Jun. 30, 2013 Eligible Inventory [Member] Credit Agreement [Member] Ex-Im Facility [Member]	Jun. 30, 2013 Prime Rate [Member] Credit Agreement [Member]
Line of Credit Facility [Line Items]
Number of Credit Facilities			2
Line of Credit Facility, Maximum Borrowing Capacity				$ 1.5	$ 1.0	$ 1.5
Line of Credit Facility, Expiration Date	Aug. 30, 2013	Jun. 29, 2013
Debt Instrument, Covenant, Maintaining Liquidity				1.25
Guidence Line, Capacity Available				$ 1.5
Line of Credit Facility, Eligible Percentage							80.00%	90.00%	75.00%	50.00%
Debt Instrument, Basis Spread on Variable Rate											2.50%
Debt Instrument, Interest Rate, Stated Percentage				7.00%
Debt Instrument, Lower Interest Rate				0.50%

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Available-for-sale investments, at quoted market value, cost	$ 2,882	$ 2,741
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	9,207,874	9,062,633
Common stock, shares outstanding	9,207,874	9,062,633

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Available-for-Sale Investments

6 Months Ended

Jun. 30, 2013

Available-for-Sale Investments [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Available-for-Sale Investments

Available-for-sale investments consist of assets held as part of the Spire Corporation Non-Qualified Deferred Compensation Plan. These investments have been classified as available-for-sale investments and are reported at fair value, with unrealized gains and losses included in accumulated other comprehensive income. The unrealized gain on these marketable securities was $329 thousand and $222 thousand as of June 30, 2013 and December 31, 2012, respectively. Additionally, the Company settled $84 thousand of accrued liabilities through issuance of common stock to available-for-sale investments during the six month period ended June 30, 2013.

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Consolidated Statement of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Comprehensive income (loss):
Net income (loss)	$ (1,782)	$ (1,822)	$ (4,410)	$ 1,543
Other comprehensive income (loss):
Change in unrealized gain (loss) on available for sale marketable securiteis, net of tax	(132)	(223)	107	109
Total comprehensive income (loss)	$ (1,914)	$ (2,045)	$ (4,303)	$ 1,652

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Consolidated Balance Sheets Statement (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Current assets
Cash and Cash Equivalents	$ 1,735	$ 3,030
Accounts receivable – trade, net	1,453	2,137
Inventories, net	4,966	5,316
Deferred cost of goods sold	92	185
Deposits on equipment for inventory	87	69
Prepaid expenses and other current assets	478	617
Current assets of discontinued operations and assets held for sale	0	718
Total current assets	8,811	12,072
Property and equipment, net	1,039	1,197
Intangible and other assets, net	401	393
Available-for-sale investments, at quoted market value (cost of $2,250 and $2,204 at September 30, 2012 and December 31, 2011, respectively)	3,211	2,963
Total assets	13,462	16,625
Current liabilities
Current portion of capital lease obligation	14	13
Revolving line of credit	589	590
Accounts payable	1,955	1,424
Accrued liabilities	2,450	2,221
Advances on contracts in progress	1,175	1,037
Liabilities of discontinued operations	21	171
Total current liabilities	6,204	5,456
Long-term portion of capital lease obligation	1	8
Deferred compensation	3,211	2,963
Other long-term liabilities	736	746
Total long-term liabilities	3,948	3,717
Total liabilities	10,152	9,173
Stockholders’ equity
Common stock, $0.01 par value; 20,000,000 shares authorized; 8,562,633 shares issued and outstanding on September 30, 2012 and December 31, 2011, respectively	92	91
Additional paid-in capital	23,244	23,084
Accumulated deficit	(20,355)	(15,945)
Accumulated other comprehensive income	329	222
Total stockholders’ equity	3,310	7,452
Total liabilities and stockholders’ equity	$ 13,462	$ 16,625

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Accumulated Other Comprehensive Income Changes in Accumulated OCI (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Accumulated Other Comprehensive Income (Changes in Accumulated Other Comprehensive Income) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 329	$ 222
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax	162
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax	(55)
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent	$ 107

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Accumulated Other Comprehensive Income Reclassification Out of Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2013

Reclassifications Out of Accumulated Other Comprehensive Incme [Abstract]

Reclassification Out Of Accumulated Other Comprehensive Income [Table Text Block]

Reporting reclassifications out of accumulated other comprehensive income for the three months ended June 30, 2013 consist of the following:

Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income (in thousands)			Affected Line Item in the Statement Where Net Income is Resented
Unrealized gains (losses) on available-for-sale investments	$	(55	)	Selling, general and administrative expenses

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Income (loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2013

Income (loss) Per Share [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

The following table provides a reconciliation of the denominators of the Company’s reported basic and diluted income (loss) per share computations for the periods ended:

	Three Months Ended June 30,		Six Months Ended June 30,
	2013	2012	2013	2012
Weighted average number of common and common equivalent shares outstanding – basic	9,207,874	8,562,633	9,144,482	8,562,633
Add:  Net additional common shares upon assumed exercise of common stock options	—	—	—	—
Adjusted weighted average number of common and common equivalents shares outstanding – diluted	9,207,874	8,562,633	9,144,482	8,562,633

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Fair Value Measurements Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	$ 3,211	$ 2,963
Percent of Total Available-for-sale Investments	100.00%	100.00%
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	1,708	1,265
Percent of Total Available-for-sale Investments	53.00%	43.00%
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	1,503	1,698
Percent of Total Available-for-sale Investments	47.00%	57.00%
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Percent of Total Available-for-sale Investments	0.00%	0.00%
Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	70	32
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	70	32
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	1,359	708
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	1,359	708
Common Stock [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Basic Material [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	28	15
Common Stock [Member] | Basic Material [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	28	15
Common Stock [Member] | Basic Material [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Basic Material [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | consumer goods [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	126	58
Common Stock [Member] | consumer goods [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	126	58
Common Stock [Member] | consumer goods [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | consumer goods [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Energy [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	124	29
Common Stock [Member] | Energy [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	124	29
Common Stock [Member] | Energy [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Energy [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Financial [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	114	61
Common Stock [Member] | Financial [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	114	61
Common Stock [Member] | Financial [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Financial [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Healthcare [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	140	52
Common Stock [Member] | Healthcare [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	140	52
Common Stock [Member] | Healthcare [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Healthcare [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Industrial Goods [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	141	51
Common Stock [Member] | Industrial Goods [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	141	51
Common Stock [Member] | Industrial Goods [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Industrial Goods [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Services [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	54	32
Common Stock [Member] | Services [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	54	32
Common Stock [Member] | Services [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Services [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Technology [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	607	376
Common Stock [Member] | Technology [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	607	376
Common Stock [Member] | Technology [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Technology [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Transportation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	9	8
Common Stock [Member] | Transportation [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	9	8
Common Stock [Member] | Transportation [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Transportation [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Utilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	16	26
Common Stock [Member] | Utilities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	16	26
Common Stock [Member] | Utilities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Common Stock [Member] | Utilities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	1,265	1,527
Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	279	525
Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	986	1,002
Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Diversified Emergency Market [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	230	187
Equity Funds [Member] | Diversified Emergency Market [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Diversified Emergency Market [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	230	187
Equity Funds [Member] | Diversified Emergency Market [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Foreign Large Blend [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	239	244
Equity Funds [Member] | Foreign Large Blend [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Foreign Large Blend [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	239	244
Equity Funds [Member] | Foreign Large Blend [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Foreign Large Growth [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	233	250
Equity Funds [Member] | Foreign Large Growth [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Foreign Large Growth [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	233	250
Equity Funds [Member] | Foreign Large Growth [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Global High Yield Income Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	52	52
Equity Funds [Member] | Global High Yield Income Fund [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Global High Yield Income Fund [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	52	52
Equity Funds [Member] | Global High Yield Income Fund [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Large Growth [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	232	220
Equity Funds [Member] | Large Growth [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Large Growth [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	232	220
Equity Funds [Member] | Large Growth [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Precious Metals [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure		49
Equity Funds [Member] | Precious Metals [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure		0
Equity Funds [Member] | Precious Metals [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure		49
Equity Funds [Member] | Precious Metals [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure		0
Equity Funds [Member] | Small Blend [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	279	525
Equity Funds [Member] | Small Blend [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	279	525
Equity Funds [Member] | Small Blend [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Equity Funds [Member] | Small Blend [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	517	696
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	517	696
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Debt Securities [Member] | Domestic Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	466	678
Debt Securities [Member] | Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Debt Securities [Member] | Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	466	678
Debt Securities [Member] | Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Debt Securities [Member] | Foreign Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	51	18
Debt Securities [Member] | Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	0	0
Debt Securities [Member] | Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	51	18
Debt Securities [Member] | Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value disclosure	$ 0	$ 0

XML

Discontinued Operations and Assets Held for Sale Discontinued Business Units Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Current Assets
Assets of Disposal Group, Including Discontinued Operation, Current	$ 0	$ 718
Current Liabilities
Total current liabilities of discontinued operations	21	171
Medical Products and Semiconductor Business Unit [Member]
Current Assets
Disposal Group, Including Discontinued Operation, Other Current Assets	0	718
Assets of Disposal Group, Including Discontinued Operation, Current	0	718
Total Assets of discontinued operations and assets held for sale	0	718
Current Liabilities
Accrued liabilities	21	171
Total current liabilities of discontinued operations	21	171
Total liabilities of discontinued operations	$ 21	$ 171

XML

Operating Segments and Related Information Narrative Accounts Receivable (Details)	Jun. 30, 2013 customers	Dec. 31, 2012 customers
Accounts, Notes, Loans and Financing Receivable [Line Items]
The Number Of Customers That Account for 10% or Greater of the Company's Accounts Receivables	3	1
Customer A [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage Of Total Trade Receivables	12.00%
Customer C [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage Of Total Trade Receivables	22.00%	24.00%
Customer F [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage Of Total Trade Receivables	12.00%

XML

Income (loss) Per Share (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Weighted average number of common and common equivalent shares outstanding – basic	9,207,874	8,562,633	9,144,482	8,562,633
Add: Net additional common shares upon assumed exercise of common stock options	0	0	0	0
Adjusted weighted average number of common and common equivalents shares outstanding - diluted	9,207,874	8,562,633	9,144,482	8,562,633
In Money Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,554	878	4,375	2,287
Underwater Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	632,446	668,446	622,446	658,446

XML

Operating Segments and Related Information Sales and Revenue by Segment (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		0 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 Solar [Member]	Jun. 30, 2012 Solar [Member]	Jun. 30, 2013 Solar [Member]	Jun. 30, 2012 Solar [Member]	Jun. 30, 2013 Biomedical [Member]	Jun. 30, 2012 Biomedical [Member]	Jun. 30, 2013 Biomedical [Member]	Jun. 30, 2012 Biomedical [Member]	Mar. 09, 2012 Semiconductor Business Unit [Member]	Dec. 14, 2009 Medical Products Business Unit [Member]
Segment Reporting Information [Line Items]
Disposal Date													Mar. 09, 2012	Dec. 14, 2009
Revenues	$ 3,574	$ 6,620	$ 6,812	$ 14,095	$ 1,892	$ 4,881	$ 3,338	$ 10,734	$ 1,682	$ 1,739	$ 3,474	$ 3,361
Operating Income (Loss) from continuing operations	$ (1,768)	$ (1,787)	$ (4,370)	$ (3,396)	$ (1,938)	$ (1,999)	$ (4,730)	$ (3,543)	$ 170	$ 212	$ 360	$ 147

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Intangible and Other Assets

6 Months Ended

Jun. 30, 2013

Intangible and Other Assets [Abstract]

Intangible and Other Assets [Text Block]

Intangible and Other Assets

Patents amounted to $86 thousand and $111 thousand, net of accumulated amortization of $847 thousand and $822 thousand, at June 30, 2013 and December 31, 2012, respectively. Licenses amounted to $58 thousand and $60 thousand, net of accumulated amortization of $17 thousand and $15 thousand, at June 30, 2013 and December 31, 2012, respectively. Patent cost is primarily composed of cost associated with securing and registering patents that the Company has been awarded or that have been submitted to, and the Company believes will be approved by the government. License cost is composed of the cost to acquire rights to the underlying technology or know-how. These costs are capitalized and amortized over their useful lives or terms, ordinarily five years using the straight-line method. There are no expected residual values related to these patents. Amortization expense from continuing operations, relating to patents and licenses, was approximately $14 thousand and $27 thousand for the three months ended June 30, 2013 and 2012, respectively. Amortization expense from continuing operations, relating to patents and licenses, was approximately $27 thousand and $40 thousand for the six months ended June 30, 2013 and 2012, respectively.

For disclosure purposes, the table below includes future amortization expense for patents and licenses owned by the Company as well as estimated amortization expense related to patents that remain pending at June 30, 2013 of $107 thousand. This estimated expense for patents pending assumes that the patents are issued immediately, and therefore are being amortized over five years on a straight-line basis. Estimated amortization expense for the periods ending December 31, is as follows: 

(in thousands)	Amortization Expense
2013 remaining 6 months	$	38
2014	68
2015	44
2016	30
2017	27
2018	16
Thereafter	28
	$	251

Also included in other assets are refundable deposits made by the Company of approximately $150 thousand and $154 thousand at June 30, 2013 and December 31, 2012, respectively.

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Discontinued Operations and Assets Held for Sale (Tables)

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Assets Held for Sale [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

The assets and liabilities of the Semiconductor Business Unit and the liabilities of the Medical Products Business Unit as of June 30, 2013 and December 31, 2012 are as follows:

(in thousands)	June 30, 2013		December 31, 2012
Assets
Current Assets
Restricted cash	$	—	$	718
Total current assets of discontinued operations	—		718
Total assets of discontinued operations	$	—	$	718
Liabilities of Discontinued Operations
Current liabilities of discontinued operations
Accrued liabilities	$	21	$	171
Total current liabilities of discontinued operations	21		171
Total liabilities of discontinued operations	$	21	$	171

Condensed results of operations relating to the Semiconductor Business Unit for the three and six months ended June 30, 2013 and 2012 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Net sales and revenues	$	—	$	—	$	—	$	425
Gross margin	$	—	$	—	$	—	$	(296	)
Loss from discontinued operations before sale of business unit	$	—	$	—	$	—	$	(430	)
Gain on sale of business unit, net of transaction expenses	—		—		—		5,449
Income tax provision	—		—		—		(2,008		)
Net income from discontinued operations, net of tax	$	—	$	—	$	—	$	3,011

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Intangible and Other Assets Other Assets Narrative (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Refundable deposits	$ 150	$ 154

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Notes Payable and Credit Arrangements

6 Months Ended

Jun. 30, 2013

Notes Payable and Credit Arrangements [Abstract]

Debt Disclosure [Text Block]

Notes Payable and Credit Arrangements

The Company has two separate credit facilities with Silicon Valley Bank (the “Bank” or “SVB”): (i) a Second Amended and Restated Loan and Security Agreement (as amended, the "Revolving Credit Facility") and (ii) an Amended and Restated Export-Import Bank Loan and Security Agreement (as amended, the "Ex-Im Facility") pursuant to which outstanding amounts under this facility are guaranteed by the Export-Import Bank of the United States (the “EXIM Bank”). The credit facilities provide an aggregate amount of $1.5 million under both facilities, with up to $1 million available under the Revolving Credit Facility and up to $1.5 million available under the Ex-Im Facility. In addition, a guidance line supports letters of credit in an aggregate amount of up to $1.5 million through August 30, 2013. If the Company achieves certain levels of liquidity, based on cash on hand and availability under the credit facility, the Company will not be required to cash collateralize letters of credit issued under this guidance line.

On June 12, 2013, the Company and the Bank entered into (i) the Fifth Loan Modification Agreement amending certain terms of the Revolving Credit Facility and (ii) the Fifth Loan Modification Agreement amending certain terms of the Ex-Im Facility. Pursuant to the terms of the Fifth Loan Modification Agreements, the Company and the Bank agreed to (i) extend the maturity date of the Revolving Credit Facility and the Ex-Im Facility from June 29, 2013 to August 30, 2013 and and (ii) effective June 1, 2013, amend the definition of the Financial Covenant by deleting the minimum cash covenant and replacing it with a newly defined covenant whereby the Company shall maintain liquidity of at least $1.25 million at all times based on cash on hand and availability under the credit facility, as long as any commitment remains outstanding under the facilities.

The Company's obligations under these two credit facilities, as well as the guidance line, are secured by substantially all of the assets of the Company. Advances under the Revolving Credit Facility are limited to 80% of eligible receivables. Advances under the Ex-Im Facility are limited to (i) 90% of eligible receivables subject to a suitable foreign currency hedge agreement if applicable, plus (ii) 75% of all other eligible receivables billed in foreign currency, plus (iii) 50% of the value of eligible inventory, as defined. In addition, until all amounts under the credit facilities with the Bank are repaid, covenants under the credit facilities impose restrictions on the Company's ability to, among other things, incur additional indebtedness, create or permit liens on the Company's assets, merge, consolidate or dispose of assets (other than in the ordinary course of business), make dividend and other restricted payments, make certain debt or equity investments, make certain acquisitions, engage in certain transactions with affiliates or change the business conducted by the Company. Any failure by the Company to comply with the covenants and obligations under the credit facilities could result in an event of default, in which case the Bank may be entitled to declare all amounts owed to be due and payable immediately.

Under the credit facilities, interest on outstanding borrowings accrues at a rate per annum equal to the greater of (i) the prime rate plus 2.5% or (ii) 7.0%. In addition, if the Company achieves certain levels of liquidity, based on cash on hand and availability under the credit facility, the Company will have a 0.5% lower interest rate.

Advances outstanding under the Revolving Credit Facility were $556 thousand and $449 thousand at June 30, 2013 and December 31, 2012, respectively.  Advances outstanding under the Ex-Im Facility were $33 thousand and $141 thousand at June 30, 2013 and December 31, 2012, respectively.  As of June 30, 2013, the interest rate per annum on the Revolving Credit Facility and Ex-Im Facility was 6.5% and 6.5%, respectively. The Company has utilized $160 thousand and $675 thousand of the guidance line at June 30, 2013 and December 31, 2012, respectively. Combined availability under the Revolving Credit Facility and the Ex-Im Facility was $322 thousand as of June 30, 2013.

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Operating Segments and Related Information

6 Months Ended

Jun. 30, 2013

Operating Segments and Related Information [Abstract]

Segment Reporting Disclosure [Text Block]

Operating Segments and Related Information

The Company's operations are focused on two primary business areas:  Spire Solar (comprised of solar equipment, solar systems and solar research) and Spire Biomedical (comprised of biomedical surface treatments and biophotonics research).  Spire Solar and Spire Biomedical operate out of the Company's facility in Bedford, Massachusetts. Each business area is independently managed and has separate financial results that are reviewed by the Board of Directors and Chief Executive Officer and the chief executive officers of each operating division.

During the first quarter of 2012, the Company began pursuing an exclusive sales process of our semiconductor business and on March 9, 2012, the Company completed the sale of the Semiconductor Business Unit to Masimo Corporation. The Company reported the Semiconductor Business Unit as discontinued operations beginning with our financial results presented in our Quarterly Report on Form 10-Q for the first quarter of fiscal 2012. The Semiconductor Business Unit was previously reported as our optoelectronics segment. Accordingly, the results of operations and assets and liabilities of the Semiconductor Business Unit are being presented herein as discontinued operations and are not included in the table below. See Note 13 to the unaudited condensed consolidated financial statements.

The following table presents certain continuing operating division information in accordance with the provisions of ASC 280, Segments Reporting.

(in thousands)	Solar			Biomedical		Total Company
For the three months ended June 30, 2013
Net sales and revenues	$	1,892		$	1,682	3,574
Operating income (loss) from continuing operations	$	(1,938	)	$	170	(1,768		)
For the three months ended June 30, 2012
Net sales and revenues	$	4,881		$	1,739	6,620
Operating income (loss) from continuing operations	$	(1,999	)	$	212	(1,787		)
For the six months ended June 30, 2013
Net sales and revenues	$	3,338		$	3,474	$	6,812
Operating income (loss) from continuing operations	$	(4,730	)	$	360	$	(4,370	)
For the six months ended June 30, 2012
Net sales and revenues	$	10,734		$	3,361	$	14,095
Operating income (loss) from continuing operations	$	(3,543	)	$	147	$	(3,396	)

Operating income (loss) from continuing operations is net sales less cost of sales and selling, general and administrative expenses, but is not affected by non-operating income (expense), by income taxes or by net income (loss) from discontinued operations. In calculating operating income (loss) from continuing operations for individual business units, substantial administrative expenses incurred at the operating level that are common to more than one segment are allocated on a net sales basis. Certain corporate expenses of an operational nature are also allocated to the divisions based on factors including occupancy, employment, and purchasing volume. All intercompany transactions have been eliminated.

The following table shows net sales and revenues by geographic area (based on customer location):

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2013		%		2012		%		2013		%		2012		%
United States	$	2,261	63	%	$	2,352	35	%	$	4,534	66	%	$	4,949	35	%
Europe/Africa	454		13		444		7		790		12		2,686		19
Asia	662		19		3,824		58		1,271		19		6,407		46
Rest of the world	197		5		—		—		217		3		53		—
	$	3,574	100	%	$	6,620	100	%	$	6,812	100	%	$	14,095	100	%

Revenues from contracts with United States government agencies for the three months ended June 30, 2013 and 2012 were approximately $197 thousand and $448 thousand or 6% and 7% of total net sales and revenues, respectively.

Revenues from contracts with United States government agencies for the six months ended June 30, 2013 and 2012 were approximately $643 thousand and $872 thousand or 9% and 6% of total net sales and revenues, respectively.

Revenues from the delivery of biomedical services to two customers accounted for 20% and 11% of total net sales and revenues for the three month period ended June 30, 2013.

Revenues from the delivery of biomedical services to two customers accounted for 21% and 13% of total net sales and revenues for the six month period ended June 30, 2013.

Revenues from the delivery of solar equipment to two customers account for 22% and 13% of total net sales and revenues for the three month period ended June 30, 2013. Revenues from the delivery of biomedical services to one customer accounted for 12% of total net sales and revenues for the three month period ended June 30, 2013.

 Revenues from the delivery of solar equipment to four customers account for 13%, 13% , 13% and 10% of total net sales and revenues for the six month period ended June 30, 2012. Revenues from the delivery of biomedical services to one customer accounted for 11% of total net sales and revenues for the six month period ended June 30, 2012.

Three customers represented approximately 22%, 12% and 12% , respectively, of net accounts receivable, trade at June 30, 2013 and one customer represented approximately 24% of net accounts receivable, trade at December 31, 2012.

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Description of Business

6 Months Ended

Jun. 30, 2012

Description of the Business [Abstract]

Description of the Business [Text Block]

Description of the Business

Spire Corporation ("Spire" or the "Company") develops, manufactures and markets highly-engineered products and services in two principal business areas: (i) capital equipment and systems for the photovoltaic solar industry and (ii) biomedical, generally bringing to bear expertise in materials technologies, surface science and thin films across both business areas, discussed below.

In the photovoltaic solar area, the Company develops, manufactures and markets specialized equipment for the production of terrestrial photovoltaic modules from solar cells and provide photovoltaic systems for grid connected applications in the commercial markets.  The Company's equipment has been installed in approximately 200 factories in 50 countries.  The equipment market is very competitive with major competitors located in the U.S., Japan and Europe.  The Company's flagship product is its Sun Simulator which tests module performance.  The Company's other product offerings include turn-key module lines and to a lesser extent other individual equipment.  To compete the Company offers other services such as training and assistance with module certification.  The Company also provides turn-key services to its customers to backward integrate to solar cell manufacturing.

In the biomedical area, the Company provides value-added surface treatments to manufacturers of orthopedic and other medical devices that enhance the durability, antimicrobial characteristics or other material characteristics of their products; and performs sponsored research programs into practical applications of advanced biomedical and biophotonic technologies.

On March 9, 2012, the Company completed the sale of its semiconductor business unit, which provided semiconductor foundry services, operated a semiconductor foundry and fabrication facility and was engaged in the business of wafer epitaxy, foundry services, and device fabrication for the defense, medical, telecommunications and consumer products markets (the “Semiconductor Business Unit”), to Masimo Corporation ("Masimo"). Accordingly, the results of operations and assets and liabilities of the Semiconductor Business Unit are being presented herein as discontinued operations. See Note 13 to the unaudited condensed consolidated financial statements.

Operating results will depend upon revenue growth or decline and product mix, as well as the timing of shipments of higher priced products from the Company's solar equipment line and delivery of solar systems.  Export sales, which amounted to 37% and 34% of net sales and revenues for the three and six months ended June 30, 2013, respectively, and 65% of net sales and revenues for both the three and six months ended June 30, 2012, respectively, continue to constitute a significant portion of the Company's net sales and revenues.

The Company has incurred operating losses from continuing operations.  Operating loss from continuing operations was $1.8 million and $4.4 million for the three and six months ended June 30, 2013, respectively. Operating loss from continuing operations was $1.8 million and $3.4 million for the three and six months ended June 30, 2012, respectively. Net cash used in operating activities was $1.9 million for the six months ended June 30, 2013, which includes $150 thousand of cash used in operating activities of discontinued operations. Net cash used in operating activities was $4.3 million for the six months ended June 30, 2012, which includes $1.7 million of cash used in operating activities of discontinued operations. As of June 30, 2013, the Company had unrestricted cash and cash equivalents of $1.7 million compared to $3.0 million as of December 31, 2012.  The maturity date of the Company's credit facilities is August 30, 2013. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company currently believes that its existing cash resources at June 30, 2013, will be sufficient to fund its operations into the second half of 2013; however, the Company cannot assure you of this.

The Company has various options on how to fund future operational losses or working capital needs, including but not limited to sales of equity, bank debt, the sale or license of assets and technology, or joint ventures involving cash infusions, as it has done in the past; however, there are no assurances that the Company will be able to sell equity, obtain or access bank debt, sell or license assets or technology or enter into such joint ventures on a timely basis and at appropriate values.  The Company has developed several plans including potential strategic alternatives, cost reduction efforts and expanding revenue in other solar markets to offset a decline in business due to global economic conditions.  The Company's inability to successfully implement its cost reduction strategies, expand revenue in other solar markets or to renew its credit facilities, could adversely impact the Company's ability to continue as a going concern.

Based on the forecasts and estimates underlying the Company's current operating plan, the financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

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Accumulated Other Comprehensive Income Reclassifications from Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Accumulated Other Comprehensive Income (Reclassification Out of AOCI) [Line Items]
Selling, general and administrative expenses	$ 2,271	$ 2,940	$ 5,085	$ 6,404
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Reclassification Out of AOCI) [Line Items]
Selling, general and administrative expenses			$ (55)

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Share-based Compensation Stock-Based Compensation Exepnse (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee Service Share-based compensation, Nonvested Awards, Compensation Costs Not yet Recognized, Year One	$ 48		$ 48
Employee Service Share-based Compensation, Nonvested awards, Compensation Costs Not yet Recognized, Year Two	4		4
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	52		52
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount			0	0
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition			1 year 0 months 28 days
Segment, Continuing Operations [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	41	66	77	121
Segment, Continuing Operations [Member] | Cost of Contract Reserach and Services [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	5	6	10	10
Segment, Continuing Operations [Member] | Cost of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	4	10	7	25
Segment, Continuing Operations [Member] | Selling, General and Administrative Expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	32	50	60	86
Segment, Discontinued Operations [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	$ 0	$ 0	$ 0	$ (7)

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Accounts Receivable/Advances on Contracts in Progress (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amounts billed	$ 1,265		$ 1,927
Accrued revenue	234		238
Accounts Receivable, Gross	1,499		2,165
Less: Allowance for doubtful accounts	(46)		(28)
Net accounts receivable - trade	1,453		2,137
Customer Advances, Current	1,175		1,037
Allowance for Doubtful Accounts Receivable, Recoveries	$ 0	$ 5

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Discontinued Operations and Assets Held for Sale

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Assets Held for Sale [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations and Assets Held for Sale

The accompanying unaudited condensed consolidated balance sheets, statements of operations and cash flows present the results of operations and assets and liabilities of the Semiconductor Business Unit and the liabilities of the Medical Products Business Unit as discontinued operations.

Sales of Medical Products Business Unit

On December 14, 2009, the Company completed the sale of its medical products business unit, which developed and marketed coated and uncoated hemodialysis catheters and related devices for the treatment of chronic kidney disease (the “Medical Products Business Unit”), to Bard Access Systems, Inc. (“Bard”). Accordingly, the liabilities of the Medical Products Business Unit are being presented herein as discontinued operations.

Sale of Semiconductor Business Unit

During the first quarter of 2012, the Company began pursuing an exclusive sales process of the Company's Semiconductor Business Unit. The Company (i) determined that the Semiconductor Business Unit was a separate component of the Company's business as, historically, management reviewed separately the Semiconductor Business Unit's financial results apart from the Company's ongoing continuing operations, (ii) eliminated the Semiconductor Business Unit's financial results from ongoing operations and (iii) determined that the Company will have no further continuing involvement in the operations of the Semiconductor Business Unit or cash flows from the Semiconductor Business Unit after the sale.

On March 9, 2012, the Company completed the sale of the Semiconductor Business Unit to Masimo. The asset purchase agreement provided that the aggregate purchase price for the Semiconductor Business Unit was $8.0 million plus the assumption of $500 thousand in liabilities, with the cash portion of the purchase price being reduced by retained cash, accounts receivable and liabilities assumed by Masimo in excess of the agreed upon assumed liabilities. As a result, in the first quarter of 2012 the Company received approximately $7.3 million in cash (less the escrow described below) and incurred legal and transaction related fees of $425 thousand and Masimo assumed approximately $1.2 million in liabilities. Of the purchase price, approximately $718 thousand was deposited into an indemnity escrow account for fifteen months to partially secure the Company's obligations for any indemnity claims under the asset purchase agreement. There were no indemnity claims related to the asset purchase agreement and the Company received full payment from the indemnity escrow account in June 2013. In connection with this transaction, the lease for the premises in Hudson, New Hampshire where the Semiconductor Business Unit was located, was terminated on March 9, 2012, and the Company was released from all future obligations under the lease as of such date.

The Company recorded a loss from discontinued operations before the sale of the Semiconductor Business Unit of zero and $430 thousand for the six months ended June 30, 2013 and 2012, respectively.

Summarized Financial Information of the Discontinued Operations

The assets and liabilities of the Semiconductor Business Unit and the liabilities of the Medical Products Business Unit as of June 30, 2013 and December 31, 2012 are as follows:

(in thousands)	June 30, 2013		December 31, 2012
Assets
Current Assets
Restricted cash	$	—	$	718
Total current assets of discontinued operations	—		718
Total assets of discontinued operations	$	—	$	718
Liabilities of Discontinued Operations
Current liabilities of discontinued operations
Accrued liabilities	$	21	$	171
Total current liabilities of discontinued operations	21		171
Total liabilities of discontinued operations	$	21	$	171

Condensed results of operations relating to the Semiconductor Business Unit for the three and six months ended June 30, 2013 and 2012 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Net sales and revenues	$	—	$	—	$	—	$	425
Gross margin	$	—	$	—	$	—	$	(296	)
Loss from discontinued operations before sale of business unit	$	—	$	—	$	—	$	(430	)
Gain on sale of business unit, net of transaction expenses	—		—		—		5,449
Income tax provision	—		—		—		(2,008		)
Net income from discontinued operations, net of tax	$	—	$	—	$	—	$	3,011

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Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Measurements [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

The hierarchy established under ASC 820-10, Fair Value Measures and Disclosures ("ASC 820-10") gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). As required by ASC 820-10, the Company's available-for-sale investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy under ASC 820-10, and its applicability to the Company's available-for-sale investments, are described below:

Level 1 - Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date. As required by ASC 820-10, the Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

Level 2 - Pricing inputs are quoted prices for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments.

Level 3 - Pricing inputs are unobservable for the investment, that is, inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability. Level 3 includes investments that are supported by little or no market activity.    

Valuation Techniques

Fair value is a market-based measure considered from the perspective of a market participant who would buy the asset or assume the liability rather than the Company's own specific measure. All of the Company's fixed income securities are priced using a variety of daily data sources, largely readily-available market data and broker quotes. To validate these prices, the Company compares the fair market values of the Company's fixed income investments using market data from observable and corroborated sources. The Company also performs the fair value calculations for its common stock and mutual fund securities using market data from observable and corroborated sources. In periods of market inactivity, the observability of prices and inputs may be reduced for certain instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or from Level 2 to Level 3. During the six months ended June 30, 2013, none of the Company's instruments were reclassified between Level 1, Level 2, Level 3 and there have been no changes in valuation techniques.

The following table presents the financial instruments related to the Company’s available-for-sale investment carried at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 by ASC 820-10 valuation hierarchy (as defined above).

(in thousands)	Balance as of June 30, 2013			Level 1			Level 2			Level 3
Cash and short term investments	$	70		$	70		$	—		$	—
Common stock
Basic Materials	28			28			—			—
Consumer Goods	126			126			—			—
Energy	124			124			—			—
Financial	114			114			—			—
Healthcare	140			140			—			—
Industrial Goods	141			141			—			—
Services	54			54			—			—
Technology	607			607			—			—
Transportation	9			9			—			—
Utilities	16			16			—			—
Total Common Stock	1,359			1,359			—			—
Mutual Fund
Diversified Emerging Markets	230			—			230			—
Foreign Large Blend	239			—			239			—
Foreign Large Growth	233			—			233			—
Large Growth	232			—			232			—
Small Blend	279			279			—			—
Global High Yield Income Fund	52			—			52			—
Total Mutual Fund	1,265			279			986			—
Fixed Income
Domestic	466			—			466			—
International	51			—			51			—
Total Fixed Income	517			—			517			—
Total available-for-sale investments (1)	$	3,211		$	1,708		$	1,503		$	—
Percent of total	100		%	53		%	47		%	—		%

(in thousands)	Balance as of December 31, 2012			Level 1			Level 2			Level 3
Cash and short term investments	$	32		$	32		$	—		$	—
Common Stock
Basic Materials	15			15			—			—
Consumer Goods	58			58			—			—
Energy	29			29			—			—
Financial	61			61			—			—
Healthcare	52			52			—			—
Industrial Goods	51			51			—			—
Services	32			32			—			—
Technology	376			376			—			—
Transportation	8			8			—			—
Utilities	26			26			—			—
Total Common Stock	708			708			—			—
Mutual Fund
Diversified Emerging Markets	187			—			187			—
Precious Metals Fund	49			—			49			—
Foreign Large Blend	244			—			244			—
Foreign Large Growth	250			—			250			—
Large Growth	220			—			220			—
Small Blend Total	525			525			—			—
Global High Yield Income Fund	52			—			52			—
Total Mutual Funds	1,527			525			1,002			—
Fixed Income
Domestic	678			—			678			—
International	18			—			18			—
Total Fixed Income	696			—			696			—
Total available for-sale-investments (1)	$	2,963		$	1,265		$	1,698		$	—
Percent of total	100		%	43		%	57		%	—		%

⁽¹⁾  Changes in the fair value of available-for-sale investments are recorded in accumulated other comprehensive income, a component of stockholders’ equity, in the Company’s unaudited condensed consolidated balance sheets.

The carrying amounts reflected in the Company's unaudited condensed consolidated balance sheets for cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, and capital lease obligations approximate fair value due to their short-term maturities. The fair value of the Company's revolving line of credit has been estimated by management based on the terms that it believes it could obtain in the current market for debt of the same terms and similar remaining maturities. Due to the short-term nature of the remaining maturities, frequency of amendments to its terms and the variable interest rates, the carrying value of the revolving line of credit approximates fair value at June 30, 2013 and December 31, 2012.

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Inventories and Deferred Costs of Goods Sold (Tables)

3 Months Ended

Jun. 30, 2013

Inventories and Deferred Costs of Goods Sold [Abstract]

Schedule of Inventories and Deferred Costs of Goods Sold [Table Text Block]

Inventories, net of $1.0 million and $860 thousand of reserves at June 30, 2013 and December 31, 2012, respectively, and deferred cost of goods sold consist of the following at: 

(in thousands)	June 30, 2013		December 31, 2012
Raw materials	$	1,524	$	1,784
Work in process	2,086		2,103
Finished goods	1,356		1,429
Net inventory	$	4,966	$	5,316
Deferred cost of goods sold	$	92	$	185

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Subsequent Events

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Events

The Company evaluated subsequent events through the date of this filing and had no subsequent events to report.

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Document and Entity Information Document	6 Months Ended
	Jun. 30, 2013	Aug. 06, 2013
Entity Information [Line Items]
Entity Registrant Name	SPIRE Corp
Entity Central Index Key	0000731657
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		9,207,874

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Accounts Receivable/Advances on Contracts in Progress (Tables)

6 Months Ended

Jun. 30, 2013

Accounts Receivable and Advances on Contracts in Progress [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Net accounts receivable, trade and advances on contracts in progress consists of the following:

(in thousands)	June 30, 2013			December 31, 2012
Amounts billed	$	1,265		$	1,927
Accrued revenue	234			238
Gross accounts receivable - trade	1,499			2,165
Less:  Allowance for doubtful accounts	(46		)	(28		)
Net accounts receivable - trade	$	1,453		$	2,137
Advances on contracts in progress	$	1,175		$	1,037