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Document and Entity Information

v2.4.0.6
Document and Entity Information
9 Months Ended
Sep. 30, 2012
Oct. 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 Sep. 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   119,675,372
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2012  

Consolidated Balance Sheets

v2.4.0.6
Consolidated Balance Sheets (USD $)
Sep. 30, 2012
Dec. 31, 2011
Current assets:    
Cash and cash equivalents $ 360,415 $ 3,071,783
Accounts receivable - net of allowance for doubtful accounts 435,948 839,863
Prepaid expenses and other current assets 698,881 153,021
Total current assets 1,495,244 4,064,667
Property and equipment, net 298,983 303,055
Other assets 28,591 28,745
Total assets 1,822,818 4,396,467
Current liabilities:    
Accounts payable 725,764 324,333
Convertible notes payable 720,000 1,486,510
Obligations under capital lease 57,363 40,701
Accrued liabilities 670,625 379,675
Deferred revenue    200,000
Total current liabilities 2,173,752 2,431,219
Obligations under capital lease, long-term 23,874 48,559
Convertible notes payable, long-term 1,568,550   
Total liabilities 3,766,176 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, 119,505,007 and 118,915,698 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively 119,505 118,916
Additional paid-in capital 115,197,203 114,654,026
Accumulated deficit (117,260,066) (112,856,253)
Total stockholders' equity (deficit) (1,943,358) 1,916,689
Total liabilities and stockholders' equity (deficit) $ 1,822,818 $ 4,396,467

Balance Sheets (Parenthetical)

v2.4.0.6
Balance Sheets (Parenthetical) (USD $)
Sep. 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 119,505,007 118,915,698
Common stock shares outstanding 119,505,007 118,915,698

Consolidated Statements of Operations

v2.4.0.6
Consolidated Statements of Operations (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Revenues        
Government contracts $ 436,729 $ 284,025 $ 1,223,273 $ 2,616,661
Contract research 98,888 242,782 250,242 1,086,381
License fees and royalties 109,000 1,608,103 887,896 1,870,943
Product sales 54,543 23,480 189,031 89,236
Other 6,345 90,629 62,150 185,313
Total revenues 705,505 2,249,019 2,612,592 5,848,534
Research and development 944,119 1,434,599 3,674,390 4,428,239
Selling, general and administrative expenses 875,638 792,070 3,024,070 2,247,766
Operating costs and expenses 1,819,757 2,226,669 6,698,460 6,676,005
Income (Loss) from operations (1,114,252) 22,350 (4,085,868) (827,471)
Interest expense (131,565) (86,238) (319,528) (296,809)
Interest income 8 1,822 1,583 15,298
Loss from continuing operations before taxes (1,245,809) (62,066) (4,403,813) (1,108,982)
Provision for taxes            
Net loss $ (1,245,809) $ (62,066) $ (4,403,813) $ (1,108,982)
Earnings (loss) per share - Basic and Diluted $ (0.01) $ 0.00 $ (0.04) $ (0.01)
Basic 119,381,717 118,853,585 119,194,845 116,155,990
Diluted 119,381,717 118,853,585 119,194,845 116,155,990

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Statement of Cash Flows [Abstract]    
Net loss $ (4,403,813) $ (1,108,982)
Depreciation and amortization expense 83,037 50,084
Amortization of discount on debt 274,815 190,089
Stock based compensation expense 215,291 564,908
Accounts receivable, trade 403,915 (174,692)
Prepaid expenses and other assets (545,706) (78,108)
Accounts payable and accrued liabilities 812,381 (134,572)
Deferred revenue (200,000) (314,250)
Total adjustments 1,043,733 103,459
Net cash used in operating activities (3,360,080) (1,005,523)
Purchases of property and equipment (50,398) (70,611)
Net cash used in investing activities (50,398) (70,611)
Repayment of capital leases (36,590) (17,602)
Proceeds from long-term debt 735,700   
Proceeds from stock issuance, net of costs    2,551,751
Net cash provided by financing activities 699,110 2,534,149
Net increase (decrease) in cash and cash equivalents (2,711,368) 1,458,015
Cash and cash equivalents, beginning of period 3,071,783 2,732,570
Cash and cash equivalents, end of period $ 360,415 $ 4,190,585

1. Basis of Presentation

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

The consolidated financial statements for the three and nine month periods ended September 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 September 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 nine month periods ended September 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
9 Months Ended
Sep. 30, 2012
Supplemental Cash Flow Elements [Abstract]  
2. Supplemental Cash Flow Information

Cash paid for interest for the nine months ended September 30, 2012 and 2011, was $18,676 and $3,504, respectively. During the nine months ended September 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, $120,000 of accounts payable were converted into common stock in each of 2012 and 2011, respectively. The Company also had capital lease transactions in the nine months ended September 30, 2012 and 2011 in the amounts of $28,567 and $85,369, respectively.

3. Notes Payable and Long-Term Debt

v2.4.0.6
3. Notes Payable and Long-Term Debt
9 Months Ended
Sep. 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 were 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 was 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 September 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. Of these remaining notes, $900,000 were formally extended to 2014 and the remaining $720,000 were informally extended and reflected as current on the balance sheet. During the nine months ended September 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 nine months ended September 30, 2012, an additional $735,700 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 $208,475, 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
9 Months Ended
Sep. 30, 2012
Equity [Abstract]  
4. Stockholders Equity

During the nine months ended September 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 300,752 shares of restricted common stock in payment of accounts payable in the amount of $120,000 during the same period, as well as 103,772 shares in connection with restricted stock payments to employees.

 

During the nine months ended September 30, 2012, we issued 494,949 shares of common stock in payment of accounts payable in the amount of $120,000, and 94,360 shares in connection with restricted stock payments to employees.

5. Share-Based Payments

v2.4.0.6
5. Share-Based Payments
9 Months Ended
Sep. 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 $215,291 and $564,908 in compensation expense in the periods ended September 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
9 Months Ended
Sep. 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.

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 $)
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Notes to Financial Statements    
Cash paid for interest $ 3,504 $ 18,676
Accounts payable converted into common stock 120,000 120,000
Capital lease transaction $ 85,369 $ 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 $)
9 Months Ended 9 Months Ended
Sep. 30, 2011
Sep. 30, 2012
Convertible Note 2010
Dec. 31, 2010
Convertible Note 2010
Dec. 31, 2010
Officers And Directors
Sep. 30, 2012
Second 2012 Note
Stated interest rate     8.00%   8.00%
Maturity date   Dec. 31, 2014     Jan. 31, 2014
Conversion price per share minimum     $ 0.20   $ 0.16
Conversion of stock per share maximum     $ 0.25    
Face amount     $ 2,146,000 $ 216,000 $ 735,000
Debt discount     647,250   208,475
Amount converted 326,000 526,000      
Note payable balance   1,620,000      
Accrued interest $ 31,394        
Shares converted 1,764,144        

4. Stockholders Equity (Details Narrative)

v2.4.0.6
4. Stockholders Equity (Details Narrative) (USD $)
9 Months Ended
Sep. 30, 2012
Sep. 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 494,949 300,752
Stock issued for conversion of accounts payable 120,000 120,000
Restricted stock issued to employees $ 94,360 $ 103,722

5. Share-Based Payments (Details Narrative)

v2.4.0.6
5. Share-Based Payments (Details Narrative) (USD $)
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Notes to Financial Statements    
Share-based compensation $ 215,291 $ 564,908