Document and Entity Information
Document and Entity Information
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6 Months Ended | |
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Jun. 30, 2013
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Jul. 31, 2013
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DocumentAndEntityInformationAbstract | ||
Entity Registrant Name | Applied Nanotech Holdings, Inc. | |
Entity Central Index Key | 0000891417 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2013 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 131,839,806 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2013 |
Consolidated Balance Sheets
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) (USD $)
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Jun. 30, 2013
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Dec. 31, 2012
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Statement of Financial Position [Abstract] | ||
Preferred stock par value | $ 1.00 | $ 1.00 |
Preferred stock shares authorized | 2,000,000 | 2,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 160,000,000 | 160,000,000 |
Common stock shares issued | 130,707,780 | 119,699,286 |
Common stock shares outstanding | 130,707,780 | 119,699,286 |
Consolidated Statements of Operations
Consolidated Statements of Operations (USD $)
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3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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|
Revenues | ||||
Government contracts | $ 436,191 | $ 370,378 | $ 915,017 | $ 786,544 |
Contract research | 451,879 | 84,142 | 763,930 | 151,354 |
License fees and royalties | 82,282 | 601,596 | 138,355 | 778,896 |
Product sales | 94,920 | 65,618 | 167,621 | 134,488 |
Other | 1,500 | 8,217 | 30,559 | 55,805 |
Total revenues | 1,066,772 | 1,129,951 | 2,015,482 | 1,907,087 |
Research and development | 911,476 | 1,377,005 | 1,779,148 | 2,730,271 |
Selling, general and administrative expenses | 635,699 | 1,206,428 | 1,383,480 | 2,148,432 |
Operating costs and expenses | 1,547,175 | 2,583,433 | 3,162,628 | 4,878,703 |
Loss from operations | (480,403) | (1,453,482) | (1,147,146) | (2,971,616) |
Interest expense | (163,564) | (98,052) | (871,766) | (187,963) |
Interest income | 49 | 729 | 54 | 1,575 |
Loss from continuing operations before taxes | (643,918) | (1,550,805) | (2,018,858) | (3,158,004) |
Provision for taxes | ||||
Net loss | $ (643,918) | $ (1,550,805) | $ (2,018,858) | $ (3,158,004) |
Loss per share - Basic and Diluted | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.03) |
Weighted average shares outstanding - Basic and Diluted | 127,993,613 | 119,137,920 | 126,450,138 | 119,099,859 |
Consolidated Statements of Cash Flows
1. Basis of Presentation
1. Basis of Presentation
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6 Months Ended |
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Jun. 30, 2013
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Accounting Policies [Abstract] | |
1. Basis of Presentation |
The consolidated financial statements for the three and six month periods ended June 30, 2013 and 2012 have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations, and cash flows as of June 30, 2013 and 2012, and for the periods then ended, have been made. Those adjustments consist of normal and recurring adjustments. The consolidated balance sheet as of December 31, 2012, has been derived from the audited consolidated balance sheet as of that date.
Certain information and note disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with a reading of the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed with the U.S. Securities and Exchange Commission. The results of operations for the three and six month periods ended June 30, 2013, are not necessarily indicative of the results to be expected for the full year. |
2. Supplemental Cash Flow Information
2. Supplemental Cash Flow Information
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6 Months Ended |
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Jun. 30, 2013
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Supplemental Cash Flow Elements [Abstract] | |
2. Supplemental Cash Flow Information |
Cash paid for interest for the six months ended June 30, 2013 and 2012, was $10,579 and $7,069, respectively. During the six months ended June 30, 2013 and 2012, the Company had non-cash transactions related to share based payments described in greater detail in Note 5, non-cash transactions related to the conversion of accounts payable into common stock described in greater detail in Note 4, and non-cash transactions related to the conversion of notes payable and related accrued interest into common stock that are described in greater detail in Notes 3 and 4. The Company also had a capital lease transaction in the amount of $28,567 in the six months ended June 30, 2012. |
3. Notes Payable and Long-Term Debt
3. Notes Payable and Long-Term Debt
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6 Months Ended |
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Jun. 30, 2013
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Debt Disclosure [Abstract] | |
3. Notes Payable and Long-Term Debt |
As described in detail in our Form 10-K for the year ended December 31, 2012 we issued convertible notes from 2009 through 2012. Additional notes with a face amount of $394,250 were issued in the six months ended June 30, 2013. As of June 30, 2013, there are notes with a total face amount of $2,116,167 outstanding. These notes are due at dates throughout 2013 and through March 2014. These notes bear interest at rates ranging from 5% to 8%, and $413,109 of the notes outstanding include a 10% original issuance discount. The notes are convertible at fixed rates ranging from $0.08 to $0.25 per share and $413,109 of the face amount of the notes are convertible at floating discounts of 30% to 35% to the market price of our common stock at the date of conversion.
At the time of issuance the value of the beneficial conversion feature of these notes is calculated, recorded as a discount to the note, and amortized to expense over the term of the note. If the notes are converted before maturity, any unamortized expense at the time of conversion is expensed at the time of conversion. As of June 30, 2013, there is $220,159 of unamortized discount remaining to be amortized in future periods.
A total of $756,110 and $112,917 of discount was amortized to interest expense during the three month periods ending March 31, 2013 and 2012, respectively. |
4. Stockholders Equity
4. Stockholders Equity
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6 Months Ended |
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Jun. 30, 2013
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Equity [Abstract] | |
4. Stockholders Equity |
During the six months ended June 30, 2013, we issued 600,000 shares of common stock related to the payment of $60,000 of trade payables in an exempt offering under Regulation D of the Securities Act of 1933. We also issued 12,948 shares of common stock in connection with restricted stock payments to employees during the same period. During the six months ended June 30, 2013, we issued 9,925,461 shares of common stock as the result of the conversion of notes payable and related accrued interest in the amount of $918,079. We also issued 470,085 shares in connection with a cashless exercise of 1,692,307 warrants issued in January 2013 in connection with the issuance of convertible notes.
During the six months ended June 30, 2012, we issued 222,222 restricted shares of common stock related to the payment of $60,000 of trade payables in an exempt offering under Regulation D of the Securities Act of 1933. |
5. Share-Based Payments
5. Share-Based Payments
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6 Months Ended |
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Jun. 30, 2013
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
5. Share-Based Payments |
We use the fair value method to account for stock based compensation. We recorded $54,454 and $167,298 in compensation expense in the periods ended June 30, 2013 and 2012, respectively, related to options and restricted stock issued under our stock-based incentive compensation plans. This includes expense related to both options issued and committed, as well as unissued restricted stock in the current year, and options issued in prior years for which the requisite service period for those options includes the current year. The fair value of these options was calculated using the Black-Scholes option pricing model. Information related to the assumptions used in this model is set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. For options issued in 2013, the same approximate assumptions were used. |
6. Contingencies
6. Contingencies
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6 Months Ended |
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Jun. 30, 2013
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Commitments and Contingencies Disclosure [Abstract] | |
6. Contingencies |
Litigation
The Company is a defendant in minor lawsuits described in greater detail in its 2012 Annual Report on Form 10-K. The Company expects any potential eventual payment to have no material effect on the financial statements. |
2. Supplemental Cash Flow Information (Details Narrative)
2. Supplemental Cash Flow Information (Details Narrative) (USD $)
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6 Months Ended | |
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Jun. 30, 2013
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Jun. 30, 2012
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Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 10,579 | $ 7,069 |
Capital lease transaction | $ 28,567 |
3. Notes Payable and Long-Term Debt (Details Narrative)
3. Notes Payable and Long-Term Debt (Details Narrative) (USD $)
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6 Months Ended |
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Jun. 30, 2013
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|
Restricted stock issued to employees | |
Face amount notes issued | $ 2,116,167 |
Maturity dates of notes | 2013 through March 2014 |
Interest rates of notes | 5% to 8% |
Unamortized discount | $ 220,159 |
4. Stockholders Equity (Details Narrative)
4. Stockholders Equity (Details Narrative) (USD $)
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6 Months Ended | |
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Jun. 30, 2013
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Jun. 30, 2012
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Notes to Financial Statements | ||
Restricted stock issued | 12,948 | |
Stock issued in connection with cashless exercise of warrants, shares | 470,085 | |
Warrant shares issued | 1,692,307 | |
Stock issued for conversion of accounts payable-shares | 600,000 | 222,222 |
Stock issued for conversion of accounts payable | $ 60,000 | $ 60,000 |
Stock issued in conversion of notes payable and related interest, shares | 9,925,461 | |
Stock issued in conversion of notes payable and related interest, value | $ 918,079 |
5. Share-Based Payments (Details Narrative)
5. Share-Based Payments (Details Narrative) (USD $)
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6 Months Ended | |
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Jun. 30, 2013
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Jun. 30, 2012
|
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Notes to Financial Statements | ||
Share-based compensation | $ (54,454) | $ (167,298) |