ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2013
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
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ENERGY FOCUS, INC.
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(Exact name of registrant as specified in its charter)
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Delaware
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94-3021850
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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32000 Aurora Rd., Solon, OH
(Address of principal executive offices)
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||
44139
(Zip Code)
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(Registrant’s telephone number, including area code): (440) 715-1300
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None
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(Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report)
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer o (do not check if a smaller reporting company)
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Smaller reporting company þ
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PART I - FINANCIAL INFORMATION
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Page
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||
Item 1.
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Financial Statements
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3
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a.
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Condensed Consolidated Balance Sheets as of March 31, 2013 (Unaudited) and December 31, 2012
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3
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b.
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Condensed Consolidated Statements of Operations for the three months ended March 31, 2013 and 2012 (Unaudited)
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4
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c.
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Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2013 and 2012 (Unaudited)
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5
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d.
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Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012 (Unaudited)
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6
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e.
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Notes to Condensed Consolidated Financial Statements (Unaudited)
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7
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Item 2.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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17
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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22
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Item 4.
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Controls and Procedures
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22
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PART II - OTHER INFORMATION
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|||
Item 1A.
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Risk Factors
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22
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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22
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Item 5.
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Other Information
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22
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Item 6.
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Exhibits
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23
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Signatures
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23
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Exhibit Index
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24
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March 31,
2013 |
December 31,
2012 |
|||||||
(unaudited) | ||||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents, includes restricted cash of $135 and $252, respectively
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$ | 452 | $ | 1,181 | ||||
Trade accounts receivable less allowances of $189 and $265, respectively
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3,864 | 5,319 | ||||||
Retainage receivable
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673 | 634 | ||||||
Inventories, net
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3,113 | 2,581 | ||||||
Costs in excess of billings
|
97 | 99 | ||||||
Prepaid and other current assets
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1,069 | 1,012 | ||||||
Total current assets
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9,268 | 10,826 | ||||||
Property and equipment, net
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1,763 | 1,800 | ||||||
Intangible assets, net
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545 | 608 | ||||||
Collateralized assets
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1,000 | 1,000 | ||||||
Other assets
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119 | 119 | ||||||
Total assets
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$ | 12,695 | $ | 14,353 | ||||
LIABILITIES
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 5,430 | $ | 5,879 | ||||
Accrued liabilities
|
1,835 | 2,265 | ||||||
Deferred revenue
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300 | 751 | ||||||
Billings in excess of costs
|
187 | 464 | ||||||
Credit line borrowings
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1,212 | 1,590 | ||||||
Current maturities of long-term debt
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780 | 756 | ||||||
Total current liabilities
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9,744 | 11,705 | ||||||
Other liabilities
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18 | 30 | ||||||
Long-term debt
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3,528 | 1,793 | ||||||
Total liabilities
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13,290 | 13,528 | ||||||
SHAREHOLDERS' EQUITY
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||||||||
Preferred stock, par value $0.0001 per share: Authorized: 2,000,000 shares in 2013 and 2012 Issued and outstanding: no shares in 2013 and 2012
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- | - | ||||||
Common stock, par value $0.0001 per share: Authorized: 100,000,000 shares in 2013 and 2012 Issued and outstanding: 44,698,650 at March 31, 2013 and December 31, 2012
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4 | 4 | ||||||
Additional paid-in capital
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81,031 | 80,985 | ||||||
Accumulated other comprehensive income
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422 | 460 | ||||||
Accumulated deficit
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(82,052 | ) | (80,624 | ) | ||||
Total shareholders' equity
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(595 | ) | 825 | |||||
Total liabilities and shareholders' equity
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$ | 12,695 | $ | 14,353 |
Three months ended
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||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Net sales
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$ | 5,333 | $ | 5,302 | ||||
Cost of sales
|
4,132 | 4,517 | ||||||
Gross profit
|
1,201 | 785 | ||||||
Operating expenses:
|
||||||||
Research and development
|
37 | 46 | ||||||
Sales and marketing
|
1,303 | 1,271 | ||||||
General and administrative
|
1,066 | 1,154 | ||||||
Total operating expenses
|
2,406 | 2,471 | ||||||
Loss from operations
|
(1,205 | ) | (1,686 | ) | ||||
Other income (expense):
|
||||||||
Other expense
|
(94 | ) | (28 | ) | ||||
Interest income
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- | 1 | ||||||
Interest expense
|
(126 | ) | (151 | ) | ||||
Loss before income taxes
|
(1,425 | ) | (1,864 | ) | ||||
Provision for income taxes
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(3 | ) | (3 | ) | ||||
Net loss
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$ | (1,428 | ) | $ | (1,867 | ) | ||
Net loss per share - basic and diluted
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$ | (0.03 | ) | $ | (0.06 | ) | ||
Shares used in computing net loss per share -basic and diluted
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44,699 | 31,621 |
Three months ended
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||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Net loss
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$ | (1,428 | ) | $ | (1,867 | ) | ||
Other comprehensive income:
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||||||||
Foreign currency translation adjustments
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(38 | ) | 28 | |||||
Comprehensive loss
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$ | (1,466 | ) | $ | (1,839 | ) |
Three months ended
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||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Cash flows from operating activities:
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||||||||
Net loss
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$ | (1,428 | ) | $ | (1,867 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities:
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||||||||
Depreciation
|
162 | 150 | ||||||
Stock-based compensation
|
45 | 58 | ||||||
Provision for doubtful accounts receivable
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(29 | ) | 24 | |||||
Amortization of intangible assets
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63 | 104 | ||||||
Amortization of discounts on long-term borrowings and acquisition related liabilities
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44 | 77 | ||||||
Amortization of loan origination fees
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28 | 28 | ||||||
Deferred revenue
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(728 | ) | 216 | |||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable, inventories, and other assets
|
753 | (1,612 | ) | |||||
Accounts payable and accrued liabilities
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(868 | ) | (2,158 | ) | ||||
Total adjustments
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(530 | ) | (3,113 | ) | ||||
Net cash used in operating activities
|
(1,958 | ) | (4,980 | ) | ||||
Cash flows from investing activities:
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||||||||
Acquisition of property and equipment
|
(125 | ) | (12 | ) | ||||
Net cash used in investing activities
|
(125 | ) | (12 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds from issuances of common stock, net
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- | 4,827 | ||||||
Proceeds from other borrowings
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1,750 | - | ||||||
Payments on other borrowings
|
(12 | ) | (849 | ) | ||||
Net (payments) proceeds on credit line borrowings
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(378 | ) | 603 | |||||
Net cash provided by financing activities
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1,360 | 4,581 | ||||||
Effect of exchange rate changes on cash
|
(6 | ) | 8 | |||||
Net decrease in cash and cash equivalents
|
(729 | ) | (403 | ) | ||||
Cash and cash equivalents at beginning of period
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1,181 | 2,136 | ||||||
Cash and cash equivalents at end of period
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$ | 452 | $ | 1,733 | ||||
Classification of cash and cash equivalents:
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||||||||
Cash and cash equivalents
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$ | 317 | $ | 1,661 | ||||
Restricted cash held
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135 | 72 | ||||||
Cash and cash equivalents at end of period
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$ | 452 | $ | 1,733 |
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·
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solutions segment providing turnkey, high-quality, energy-efficient lighting application alternatives primarily to the existing public-sector building market; and
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·
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products segment providing military, general commercial and industrial lighting and pool lighting offerings, each of which markets and sells energy-efficient lighting systems.
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Three months ended
March 31, |
||||||||
2013
|
2012
|
|||||||
Basic and diluted loss per share:
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||||||||
Net loss
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$ | (1,428 | ) | $ | (1,867 | ) | ||
Basic and diluted loss per share:
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||||||||
Weighted average shares outstanding
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44,699 | 31,621 | ||||||
Basic and diluted net loss per share
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$ | (0.03 | ) | $ | (0.06 | ) |
Three months ended
March 31, |
||||||||
2013
|
2012
|
|||||||
Research and development
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$ | 7 | $ | 6 | ||||
Sales and marketing
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8 | 8 | ||||||
General and administrative
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30 | 44 | ||||||
Total stock-based compensation
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$ | 45 | $ | 58 |
Three months ended
March 31, |
||||||||
2013
|
2012
|
|||||||
Fair value of options issued
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$ | 0.15 | $ | 0.21 | ||||
Exercise price
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$ | 0.23 | $ | 0.39 | ||||
Expected life of option (years)
|
8.3
|
6.1
|
||||||
Risk-free interest rate
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1.57 | % | 1.48 | % | ||||
Expected volatility
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83.82 | % | 58.05 | % | ||||
Dividend yield
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0 | % | 0 | % |
Options
|
Weighted Average Exercise Price
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Weighted Average Remaining Contractural Term (in Years)
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||||||||||
Outstanding as of December 31, 2012
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2,184,583 | $ | 2.20 | |||||||||
Granted
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1,052,500 | $ | 0.23 | |||||||||
Exercised
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- | $ | - | |||||||||
Cancelled/forfeited
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(25,200 | ) | $ | 2.65 | ||||||||
Outstanding as of March 31, 2013
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3,211,883 | $ | 1.55 | 7.6 | ||||||||
Exercisable as of March 31, 2013
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1,565,450 | $ | 2.74 | 5.9 |
Three months ended
March 31, |
||||||||
2013
|
2012
|
|||||||
Balance at the beginning of the period
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$ | 159 | $ | 100 | ||||
Accruals for warranties issued
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16 | 31 | ||||||
Settlements made during the period (in cash or in kind)
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(35 | ) | (21 | ) | ||||
Balance at the end of the period
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$ | 140 | $ | 110 |
March 31,
2013 |
December 31,
2012 |
|||||||
Raw materials
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$ | 2,031 | $ | 1,649 | ||||
Finished goods
|
1,082 | 932 | ||||||
Inventories, net
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$ | 3,113 | $ | 2,581 |
March 31,
2013 |
December 31,
2012 |
|||||||
Equipment (useful life 3 - 15 years)
|
$ | 5,885 | $ | 5,963 | ||||
Tooling (useful life 2 - 5 years)
|
2,598 | 2,600 | ||||||
Furniture and fixtures (useful life 5 years)
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132 | 132 | ||||||
Computer software (useful life 3 years)
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450 | 462 | ||||||
Leasehold improvements (the shorter of useful life or lease life)
|
629 | 633 | ||||||
Construction in progress
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66 | 50 | ||||||
Property and equipment at cost
|
9,760 | 9,840 | ||||||
Less: accumulated depreciation
|
(7,997 | ) | (8,040 | ) | ||||
Property and equipment, net
|
$ | 1,763 | $ | 1,800 |
Amortization
Life (in years) |
March 31,
2013 |
December 31,
2012 |
||||||||||
Definite-lived intangible assets:
|
||||||||||||
Tradenames
|
10 | 338 | 350 | |||||||||
Customer relationships
|
5 | 207 | 258 | |||||||||
Total definite-lived intangible assets
|
545 | 608 | ||||||||||
Total intangible assets, net
|
$ | 545 | $ | 608 |
Year ending December 31,
|
Amount
|
|||
2013 April through December
|
$ | 190 | ||
2014
|
105 | |||
2015
|
50 | |||
2016
|
50 | |||
2017
|
50 | |||
2018 and thereafter
|
100 | |||
Total amortization expense
|
$ | 545 |
March 31,
2013 |
December 31,
2012 |
|||||||
Costs incurred on uncompleted contracts
|
$ | 8,494 | $ | 7,067 | ||||
Estimated earnings
|
1,681 | 1,330 | ||||||
Total revenues
|
10,175 | 8,397 | ||||||
Less: billings to date
|
10,265 | 8,762 | ||||||
Total
|
$ | (90 | ) | $ | (365 | ) | ||
Balance sheet classification:
|
||||||||
Costs in excess of billings on uncompleted contracts
|
$ | 97 | $ | 99 | ||||
Billings in excess of costs on uncompleted contracts
|
(187 | ) | (464 | ) | ||||
Total
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$ | (90 | ) | $ | (365 | ) |
March 31,
2013 |
December 31,
2012 |
|||||||
Unsecured Convertible Notes
|
$ | 3,250 | $ | 1,500 | ||||
Convertible Promissory Note - TLC Investments LLC
|
500 | 500 | ||||||
Cognovit Note - Keystone Ruby, LLC
|
263 | 277 | ||||||
Letter of Credit Agreement - Mark Plush
|
250 | 250 | ||||||
Unsecured Promissory Note - Quercus Trust
|
70 | 70 | ||||||
Discounts on long-term borrowings
|
(25 | ) | (48 | ) | ||||
Subtotal
|
4,308 | 2,549 | ||||||
Less: Current maturies of long-term debt
|
(780 | ) | (756 | ) | ||||
Long-term debt
|
$ | 3,528 | $ | 1,793 |
Year ending December 31,
|
Long-Term
Debt |
|||
2013 April through December
|
$ | 791 | ||
2014
|
59 | |||
2015
|
1,565 | |||
2016
|
1,822 | |||
2017
|
26 | |||
2018 and thereafter
|
70 | |||
Gross long-term borrowings
|
4,333 | |||
Less: discounts on long-term borrowings
|
(25 | ) | ||
Total commitment, net
|
4,308 | |||
Less: portion classified as current
|
(780 | ) | ||
Long-term borrowings, net
|
$ | 3,528 |
Three months ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Solutions:
|
||||||||
Net sales
|
$ | 1,807 | $ | 1,640 | ||||
Cost of sales
|
1,523 | 1,562 | ||||||
Gross profit
|
284 | 78 | ||||||
Operating expenses:
|
||||||||
Sales and marketing
|
270 | 314 | ||||||
General and administrative
|
202 | 150 | ||||||
Total operating expenses
|
472 | 464 | ||||||
Segment loss
|
$ | (188 | ) | $ | (386 | ) | ||
Products:
|
||||||||
Net sales
|
$ | 3,526 | $ | 3,662 | ||||
Cost of sales
|
2,609 | 2,955 | ||||||
Gross profit
|
917 | 707 | ||||||
Operating expenses (income):
|
||||||||
Research and development
|
37 | 46 | ||||||
Sales and marketing
|
797 | 861 | ||||||
General and administrative
|
74 | 81 | ||||||
Total operating expenses
|
908 | 988 | ||||||
Segment income (loss)
|
$ | 9 | $ | (281 | ) | |||
Reconciliation of segment income (loss) to net loss:
|
||||||||
Segment income (loss):
|
||||||||
Solutions
|
$ | (188 | ) | $ | (386 | ) | ||
Products
|
9 | (281 | ) | |||||
Total segment loss
|
(179 | ) | (667 | ) | ||||
Operating expenses:
|
||||||||
Sales and marketing
|
236 | 96 | ||||||
General and administrative
|
790 | 923 | ||||||
Total operating expenses
|
1,026 | 1,019 | ||||||
Other expense
|
(220 | ) | (178 | ) | ||||
Loss before income taxes
|
(1,425 | ) | (1,864 | ) | ||||
Provision for income taxes
|
(3 | ) | (3 | ) | ||||
Net loss
|
$ | (1,428 | ) | $ | (1,867 | ) |
Three months ended
March 31, |
||||||||
2013
|
2012
|
|||||||
Products segment net sales:
|
||||||||
Pool and commercial products
|
$ | 2,516 | $ | 2,290 | ||||
Government products/R&D services
|
1,010 | 1,372 | ||||||
Total products segment net sales
|
3,526 | 3,662 | ||||||
Products segment cost of sales:
|
||||||||
Pool and commercial products
|
1,710 | 1,631 | ||||||
Government products/R&D services
|
899 | 1,324 | ||||||
Total products segment cost of sales
|
2,609 | 2,955 | ||||||
Products segment gross profit (loss):
|
||||||||
Pool and commercial products
|
806 | 659 | ||||||
Government products/R&D services
|
111 | 48 | ||||||
Total products segment gross profit
|
$ | 917 | $ | 707 |
Three months ended
March 31, |
||||||||
2013
|
2012
|
|||||||
United States
|
$ | 4,732 | $ | 4,787 | ||||
International
|
601 | 515 | ||||||
Net sales
|
$ | 5,333 | $ | 5,302 |
March 31,
2013 |
December 31,
2012 |
|||||||
United States
|
$ | 2,254 | $ | 2,350 | ||||
International
|
54 | 58 | ||||||
Long-lived assets, net
|
$ | 2,308 | $ | 2,408 |
|
·
|
solutions segment providing turnkey, high-quality, energy-efficient lighting application alternatives primarily to the existing public-sector building market; and
|
|
·
|
products segment providing military, general commercial and industrial lighting, and pool lighting offerings, each of which markets and sells energy-efficient lighting systems.
|
Three months ended
|
||||||||
March
|
||||||||
2013
|
2012
|
|||||||
Net sales
|
100.0 | % | 100.0 | % | ||||
Cost of sales
|
77.5 | 85.2 | ||||||
Gross profit
|
22.5 | 14.8 | ||||||
Operating expenses (income):
|
||||||||
Research and development
|
0.7 | 0.9 | ||||||
Sales and marketing
|
24.4 | 24.0 | ||||||
General and administrative
|
20.0 | 21.7 | ||||||
Total operating expenses
|
45.1 | 46.6 | ||||||
Loss from operations
|
(22.6 | ) | (31.8 | ) | ||||
Other income (expense):
|
||||||||
Other (expense) income
|
(1.7 | ) | (0.5 | ) | ||||
Interest expense, net
|
(2.4 | ) | (2.8 | ) | ||||
Loss before income taxes
|
(26.7 | ) | (35.1 | ) | ||||
Provision for income taxes
|
(0.1 | ) | (0.1 | ) | ||||
Net loss
|
(26.8 | ) % | (35.2 | ) % |
Three months ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Solutions:
|
||||||||
Net sales - solutions
|
$ | 1,807 | $ | 1,640 | ||||
Products:
|
||||||||
Net sales - pool and commercial
|
2,516 | 2,290 | ||||||
Net sales - government products/R&D services
|
1,010 | 1,372 | ||||||
Total net sales - product segment
|
3,526 | 3,662 | ||||||
Total net sales
|
$ | 5,333 | $ | 5,302 |
Three months ended
March 31, |
||||||||
Net Research & Development Expense
|
2013
|
2012
|
||||||
Total gross research and development expenses
|
$ | 1,107 | $ | 1,179 | ||||
Cost recovery through cost of sales
|
(757 | ) | (894 | ) | ||||
Cost recovery and other credits
|
(313 | ) | (239 | ) | ||||
Net research and development expense
|
$ | 37 | $ | 46 |
|
·
|
obtain financing from traditional and non-traditional investment capital organizations or individuals,
|
|
·
|
potential sale or divestiture of one or more operating units, and
|
|
·
|
obtain funding from the sale of common stock or other equity or debt instruments.
|
|
·
|
loans or other debt instruments may have terms and/or conditions, such as interest rate, restrictive covenants, and control or revocation provisions, which are not acceptable to management or the Board of Directors,
|
|
·
|
the current environment in capital markets combined with the Company’s capital constraints may prevent the Company from obtaining additional debt financing,
|
|
·
|
financing may not be available for parties interested in pursuing the acquisition of one or more of the operating units of the Company, and
|
|
·
|
additional equity financing may not be available in the current capital environment and could lead to further dilution of shareholder value for current shareholders of record.
|
ENERGY FOCUS, INC.
|
|||||
Date: May 15, 2013
|
By:
|
/s/ James Tu
|
|||
James Tu
|
|||||
Executive Chairman of the Board of Directors
|
|||||
By:
|
/s/ Mark J. Plush
|
||||
Mark J. Plush
|
|||||
Chief Financial Officer
|
|||||
|
Exhibit Number
|
Description of Documents
|
31.1
|
Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
*101
|
The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at March 31, 2013 and December 31, 2012, (ii) Condensed Consolidated Statements of Operations for the three months ended March 31, 2013 and 2012, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2013 and 2012, (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March, 2013 and 2012, (vi) the Notes to Condensed Consolidated Financial Statements.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Energy Focus, Inc.;
|
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 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 we have:
|
|
(a)
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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;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(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
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(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; and
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5.
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The registrant's other certifying officer 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 registrant's board of directors (or persons performing the equivalent functions):
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(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting whichare reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.
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/s/ James Tu | |
James Tu | |||
Executive Chairman of the Board of Directors | |||
1.
|
I have reviewed this quarterly report on Form 10-Q of Energy Focus, Inc.;
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2.
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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;
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3.
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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;
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4.
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The registrant's other certifying officer 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 we have:
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(e)
|
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;
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(f)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(g)
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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
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(h)
|
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; and
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5.
|
The registrant's other certifying officer 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 registrant's board of directors (or persons performing the equivalent functions):
|
(c)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting whichare reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(d)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.
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By:
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/s/ Mark J. Plush | |
Mark J. Plush | |||
Vice President of Finance and Chief Financial Officer | |||
(i)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
|
(ii)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ James Tu
|
||
James Tu
Executive Chairman of the Board of Directors
|
||
May 15, 2013
|
||
/s/ Mark J. Plush
|
||
Mark J. Plush
Vice President of Finance and Chief Financial Officer
|
||
May 15, 2013
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Note 6 - Contracts in Progress (Detail) - Summary of Costs and Estimated Earnings on Contracts in Progress (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Costs incurred on uncompleted contracts | $ 8,494 | $ 7,067 |
Estimated earnings | 1,681 | 1,330 |
Total revenues | 10,175 | 8,397 |
Less: billings to date | 10,265 | 8,762 |
Total | (90) | (365) |
Balance sheet classification: | ||
Costs in excess of billings on uncompleted contracts | 97 | 99 |
Billings in excess of costs on uncompleted contracts | $ (187) | $ (464) |
Note 9 - Income Taxes (Detail) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
---|---|
Operating Loss Carryforwards | $ 70.7 |
Note 8 - Segments and Geographic Information (Detail) - Summary of Geographic Sales (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
United States | $ 4,732 | $ 4,787 |
International | 601 | 515 |
Net sales | $ 5,333 | $ 5,302 |
Note 3 - Inventories (Detail) - Inventories (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Raw materials | $ 2,031 | $ 1,649 |
Finished goods | 1,082 | 932 |
Inventories, net | $ 3,113 | $ 2,581 |
Note 8 - Segments and Geographic Information (Tables)
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3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] |
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Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] |
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Products Segment [Member]
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Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Note 11 - Related Party Transactions (Detail) (USD $)
In Thousands, unless otherwise specified |
1 Months Ended | 3 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|---|
Feb. 27, 2012
Committed Payment [Member]
Communal [Member]
|
Jan. 31, 2013
Additional Commited Payment [Member]
Communal [Member]
|
Mar. 31, 2013
Payment [Member]
Communal [Member]
|
Mar. 31, 2013
Commission Fee, Percentage of Net Sales [Member]
Communal [Member]
|
Aug. 11, 2011
Chief Financial Officer [Member]
|
Mar. 31, 2013
Communal [Member]
|
|
Letters of Credit Outstanding, Amount | $ 250 | |||||
Related Party Transaction, Amounts of Transaction | 523 | 425 | 75 | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 56 | |||||
Related Party Transaction, Description of Transaction | 5% |
Note 7 - Debt (Detail) - Future Maturities of Remaining Borrowings (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
2013 April through December | $ 791 | |
2014 | 59 | |
2015 | 1,565 | |
2016 | 1,822 | |
2017 | 26 | |
2018 and thereafter | 70 | |
Gross long-term borrowings | 4,333 | |
Less: discounts on long-term borrowings | (25) | (48) |
Total commitment, net | 4,308 | 2,549 |
Less: portion classified as current | (780) | (756) |
Long-term borrowings, net | $ 3,528 | $ 1,793 |
Note 5 - Goodwill and Intangible Assets (Detail) - Summary of Net Carrying Value of Intangible Assets (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
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Dec. 31, 2012
|
|
Definite-lived intangible assets: | ||
Definite-Lived Intangible Assets | $ 545 | $ 608 |
Total intangible assets, net | 545 | 608 |
Trade Names [Member]
|
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Definite-lived intangible assets: | ||
Amortization Life (in years) | 10 years | |
Definite-Lived Intangible Assets | 338 | 350 |
Customer Relationships [Member]
|
||
Definite-lived intangible assets: | ||
Amortization Life (in years) | 5 years | |
Definite-Lived Intangible Assets | $ 207 | $ 258 |
Note 8 - Segments and Geographic Information (Detail) - Summary of Geographic Long-Lived Assets (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
United States | $ 2,254 | $ 2,350 |
International | 54 | 58 |
Long-lived assets, net | $ 2,308 | $ 2,408 |
Note 3 - Inventories
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3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Inventory Disclosure [Text Block] |
NOTE
3. INVENTORIES
Inventories
are stated at the lower of standard cost (which approximates
actual cost determined using the first-in, first-out cost
method) or market and consist of the following, net of
reserves (in thousands):
|
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