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Document and Entity Information

v2.4.0.6
Document and Entity Information
6 Months Ended
Jun. 30, 2012
Jul. 31, 2012
Document And Entity Information    
Entity Registrant Name Applied Nanotech Holdings, Inc.  
Entity Central Index Key 0000891417  
Document Type 10-Q  
Document Period End Date Jun. 30, 2012  
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   119,171,607
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2012  

Consolidated Balance Sheets

v2.4.0.6
Consolidated Balance Sheets (USD $)
Jun. 30, 2012
Dec. 31, 2011
Current assets:    
Cash and cash equivalents $ 690,994 $ 3,071,783
Accounts receivable - net of allowance for doubtful accounts 706,881 839,863
Prepaid expenses and other current assets 751,096 153,021
Total current assets 2,148,971 4,064,667
Property and equipment, net 327,466 303,055
Other assets 28,591 28,745
Total assets 2,505,028 4,396,467
Current liabilities:    
Accounts payable 746,125 324,333
Convertible notes payable 1,591,532 1,486,510
Obligations under capital lease 58,379 40,701
Deferred revenue    200,000
Accrued liabilities 477,437 379,675
Total current liabilities 2,873,473 2,431,219
Obligations under capital lease, long-term 37,677 48,559
Convertible notes payable, long-term 457,895   
Total liabilities 3,369,045 2,479,778
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, 119,137,920 and 118,915,698 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively 119,138 118,916
Additional paid-in capital 115,031,102 114,654,026
Accumulated deficit (116,014,257) (112,856,253)
Total stockholders' equity (deficit) (864,017) 1,916,689
Total liabilities and stockholders' equity (deficit) $ 2,505,028 $ 4,396,467

Balance Sheets (Parenthetical)

v2.4.0.6
Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2012
Dec. 31, 2011
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 119,137,920 118,915,698
Common stock shares outstanding 119,137,920 118,915,698

Consolidated Statements of Operations

v2.4.0.6
Consolidated Statements of Operations (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Revenues        
Government contracts $ 370,378 $ 1,081,544 $ 786,544 $ 2,332,636
Contract research 84,142 294,809 151,354 843,599
License fees and royalties 601,596 261,700 778,896 262,840
Product sales 65,618 5,518 134,488 20,338
Other 8,217 18,963 55,805 140,102
Total revenues 1,129,951 1,662,534 1,907,087 3,599,515
Research and development 1,377,005 1,391,906 2,730,271 2,993,640
Selling, general and administrative expenses 1,206,428 638,141 2,148,432 1,455,696
Operating costs and expenses 2,583,433 2,030,047 4,878,703 4,449,336
Loss from operations (1,453,482) (367,513) (2,971,616) (849,821)
Other income (expense), net        
Interest expense (98,052) (78,140) (187,963) (210,571)
Interest income 729 12,534 1,575 13,476
Loss from continuing operations before taxes (1,550,805) (433,119) (3,158,004) (1,046,916)
Provision for taxes            
Net loss $ (1,550,805) $ (433,119) $ (3,158,004) $ (1,046,916)
Earnings (loss) per share - Basic and Diluted $ (0.01) $ 0.00 $ (0.03) $ (0.01)
Basic 119,137,920 118,756,832 119,099,859 114,758,368
Diluted 119,137,920 118,756,832 119,099,859 114,758,368

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Statement of Cash Flows [Abstract]    
Net loss $ (3,158,004) $ (1,046,916)
Depreciation and amortization expense 54,554 30,601
Amortization of discount on debt 112,917 138,239
Stock based compensation expense 167,298 338,041
Accounts receivable, trade 132,982 (447,942)
Prepaid expenses and other assets (597,921) (42,853)
Accounts payable and accrued liabilities 579,554 (195,867)
Deferred revenue (200,000) 186,200
Total adjustments 249,384 6,419
Net cash used in operating activities (2,908,620) (1,040,497)
Purchases of property and equipment (50,398) (34,404)
Net cash used in investing activities (50,398) (34,404)
Repayment of capital leases (21,771) (12,061)
Proceeds from long-term debt 600,000   
Proceeds from stock issuance, net of costs    2,551,751
Net cash provided by financing activities 578,229 2,539,690
Net increase (decrease) in cash and cash equivalents (2,380,789) 1,464,789
Cash and cash equivalents, beginning of period 3,071,783 2,732,570
Cash and cash equivalents, end of period $ 690,994 $ 4,197,359

1. Basis of Presentation

v2.4.0.6
1. Basis of Presentation
6 Months Ended
Jun. 30, 2012
Accounting Policies [Abstract]  
1. Basis of Presentation

The consolidated financial statements for the three and six month periods ended June 30, 2012 and 2011 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, 2012 and 2011, 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, 2011, 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, 2011, as filed with the U.S. Securities and Exchange Commission.

 

The results of operations for the three and six month periods ended June 30, 2012, 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, 2012
Supplemental Cash Flow Elements [Abstract]  
2. Supplemental Cash Flow Information

Cash paid for interest for the six months ended June 30, 2012 and 2011, was $7,069 and $1,783, respectively. During the six months ended June 30, 2012 and 2011, the Company had non-cash transactions related to share based payments described in greater detail in Note 5 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 Note 3. In addition, $60,000 of accounts payable were converted into common stock in each of 2012 and 2011, respectively. 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, 2012
Debt Disclosure [Abstract]  
3. Notes Payable and Long-Term Debt

 

We issued convertible notes payable in 2009 and 2010. These notes bear interest at a rate of 8% and are due in 2012. The notes and resulting accrued interest are convertible into shares of our common stock at rates of $0.20 to $0.25 per share. The face amount of the notes due was $2,146,000 and we valued the conversion rights at $647,250, which was recorded as a discount at the time of issuance. This discount is being amortized to interest expense over the term of the notes. $216,000 of these notes were issued to officers and directors of the Company. As of June 30, 2012, a total of $526,000 of these notes have been converted to common stock, leaving a remaining principal balance as of that date of $1,620,000. During the six months ended June 30, 2011, a total of $326,000 of principal and related accrued interest of $31,394 was converted into 1,764,144 shares of common stock. During the six months ended June 30, 2012, an additional $600,000 of convertible notes payable, bearing interest at 8%, were issued. These notes and the related accrued interest are convertible into common stock at a rate of $0.16 per share and due in January, 2014. The value of the conversion rights were valued at $150,000, which was recorded as a discount and is being amortized over the term of the notes.

4. Stockholders Equity

v2.4.0.6
4. Stockholders Equity
6 Months Ended
Jun. 30, 2012
Equity [Abstract]  
4. Stockholders Equity

 

During the six months ended June 30, 2011, we issued 6,578,948 restricted shares of common stock and received proceeds of $2.5 million in an exempt offering under Regulation D of the Securities Act of 1933, and 200,454 shares for total proceeds of $51,751 in connection with the exercise of options by former employees. We also issued 157,895 shares of restricted common stock in payment of accounts payable in the amount of $60,000 during the same period, as well as 103,722 shares in connection with restricted stock payments to employees.

 

During the six months ended June 30, 2012, we issued 222,222 shares of common stock in payment of accounts payable in the amount of $60,000.

5. Share-Based Payments

v2.4.0.6
5. Share-Based Payments
6 Months Ended
Jun. 30, 2012
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 $167,298 and $338,041 in compensation expense in the periods ended June 30, 2012 and 2011, 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, 2011. For options issued in 2012, the same approximate assumptions were used.

6. Contingencies

v2.4.0.6
6. Contingencies
6 Months Ended
Jun. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
6. Contingencies

Litigation

 

The Company is a defendant in minor lawsuits described in greater detail in its 2011 Annual Report on Form 10-K. The Company expects any potential eventual payment to have no material effect on the financial statements.

7. Subsequent Events

v2.4.0.6
7. Subsequent Events
6 Months Ended
Jun. 30, 2012
Subsequent Events [Abstract]  
7. Subsequent Events

During the period from July 1, 2012 through July 31, 2012, the Company issued additional notes payable in the amount of $231, 700 under the same terms as described in Note 3. The Company also paid an additional refundable deposit in connection with a potential acquisition in the amount of $370,000 in July 2012.

2. Supplemental Cash Flow Information - 2. Supplemental Cash Flow Information (Details)

v2.4.0.6
2. Supplemental Cash Flow Information - 2. Supplemental Cash Flow Information (Details) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Notes to Financial Statements    
Cash paid for interest $ 7,069 $ 1,783
Accounts payable converted into common stock 60,000 60,000
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 12 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2010
Stated interest rate     8.00%
Maturity date     Dec. 31, 2012
Conversion price per share minimum     $ 0.20
Conversion of stock per share maximum     $ 0.25
Face amount $ 1,620,000   $ 2,146,000
Debt discount     647,250
Amount converted 526,000 326,000  
Accrued interest   31,394  
Shares converted   1,764,144  
New 2012 Note
     
Stated interest rate 8.00%    
Maturity date Dec. 31, 2014    
Conversion price per share minimum $ 0.16    
Face amount 600,000    
Debt discount 150,000    
Officers And Directors
     
Face amount     $ 216,000

4. Stockholders Equity (Details Narrative)

v2.4.0.6
4. Stockholders Equity (Details Narrative) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Notes to Financial Statements    
Restricted stock issued   6,578,948
Restricted stock proceeds   $ 2,500,000
Exercise of options by former employees   200,454
Stock options exercised by former employees   51,751
Stock issued for conversion of accounts payable-shares 222,222 157,895
Stock issued for conversion of accounts payable 60,000 60,000
Restricted stock issued to employees   $ 103,722

5. Share-Based Payments (Details Narrative)

v2.4.0.6
5. Share-Based Payments (Details Narrative) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Notes to Financial Statements    
Share-based compensation $ 167,298 $ 338,041

7. Subsequent Events (Details Narrative)

v2.4.0.6
7. Subsequent Events (Details Narrative) (USD $)
6 Months Ended
Jun. 30, 2012
Notes to Financial Statements  
Additional notes payable issued $ 231,700
Refundable deposit paid $ 370,000