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Document and Entity Information

v2.4.0.6
Document and Entity Information
6 Months Ended
Jun. 30, 2013
Jul. 31, 2013
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

v2.4.0.6
Consolidated Balance Sheets (USD $)
Jun. 30, 2013
Dec. 31, 2012
Current assets:    
Cash and cash equivalents $ 328,140 $ 331,579
Accounts receivable - net of allowance for doubtful accounts 471,515 369,409
Prepaid expenses and other current assets 81,614 692,541
Total current assets 881,269 1,393,529
Property and equipment, net 217,023 270,693
Other assets 27,775 28,591
Total assets 1,126,067 1,692,813
Current liabilities:    
Accounts payable 731,978 813,505
Convertible notes payable 1,896,008 755,800
Obligations under capital lease 37,697 56,680
Accrued liabilities 1,185,745 855,264
Deposits and deferred revenue 51,239 103,370
Total current liabilities 3,902,667 2,584,619
Obligations under capital lease, long-term    10,480
Convertible notes payable    1,631,072
Total liabilities 3,902,667 4,226,171
Commitments and contingencies      
Stockholders' equity (deficit):    
Preferred stock, $1.00 par value, 2,000,000 shares authorized; No shares issued and outstanding      
Common stock, $.00l par value, 160,000,000 shares authorized, 130,707,780 and 119,699,286 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively 130,708 119,699
Additional paid-in capital 117,096,953 115,332,346
Accumulated deficit (120,004,261) (117,985,403)
Total stockholders' deficit (2,776,600) (2,533,358)
Total liabilities and stockholders' deficit $ 1,126,067 $ 1,692,813

Balance Sheets (Parenthetical)

v2.4.0.6
Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2013
Dec. 31, 2012
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

v2.4.0.6
Consolidated Statements of Operations (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
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

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Statement of Cash Flows [Abstract]    
Net loss $ (2,018,858) $ (3,158,004)
Depreciation and amortization expense 53,670 54,554
Amortization of discount on debt 756,110 112,917
Stock based compensation expense 54,454 167,298
Accounts receivable, trade (102,106) 132,982
Prepaid expenses and other assets 611,744 (597,921)
Accounts payable and accrued liabilities 399,691 579,554
Deferred revenue (52,131) (200,000)
Total adjustments 1,721,432 249,384
Net cash used in operating activities (297,426) (2,908,620)
Cash flows from investing activities:    
Purchases of property and equipment    (50,398)
Net cash used in investing activities    (50,398)
Cash flows from financing activities:    
Repayment of capital leases and notes payable (100,263) (21,771)
Proceeds from long-term debt 394,250 600,000
Net cash provided by financing activities 293,987 578,229
Net (decrease) in cash and cash equivalents (3,439) (2,380,789)
Cash and cash equivalents, beginning of period 331,579 3,071,783
Cash and cash equivalents, end of period $ 328,140 $ 690,994

1. Basis of Presentation

v2.4.0.6
1. Basis of Presentation
6 Months Ended
Jun. 30, 2013
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

v2.4.0.6
2. Supplemental Cash Flow Information
6 Months Ended
Jun. 30, 2013
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

v2.4.0.6
3. Notes Payable and Long-Term Debt
6 Months Ended
Jun. 30, 2013
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

v2.4.0.6
4. Stockholders Equity
6 Months Ended
Jun. 30, 2013
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

v2.4.0.6
5. Share-Based Payments
6 Months Ended
Jun. 30, 2013
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

v2.4.0.6
6. Contingencies
6 Months Ended
Jun. 30, 2013
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)

v2.4.0.6
2. Supplemental Cash Flow Information (Details Narrative) (USD $)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
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)

v2.4.0.6
3. Notes Payable and Long-Term Debt (Details Narrative) (USD $)
6 Months Ended
Jun. 30, 2013
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)

v2.4.0.6
4. Stockholders Equity (Details Narrative) (USD $)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
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)

v2.4.0.6
5. Share-Based Payments (Details Narrative) (USD $)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Notes to Financial Statements    
Share-based compensation $ (54,454) $ (167,298)