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Document and Entity Information

v2.4.0.6
Document and Entity Information
9 Months Ended
Sep. 30, 2012
Apr. 30, 2013
Document And Entity Information    
Entity Registrant Name Applied Nanotech Holdings, Inc.  
Entity Central Index Key 0000891417  
Document Type 10-Q  
Document Period End Date Mar. 31, 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   129,507,780
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2013  

Consolidated Balance Sheets

v2.4.0.6
Consolidated Balance Sheets (USD $)
Mar. 31, 2013
Dec. 31, 2012
Current assets:    
Cash and cash equivalents $ 650,739 $ 331,579
Accounts receivable - net of allowance for doubtful accounts 451,531 369,409
Prepaid expenses and other current assets 89,027 692,541
Total current assets 1,191,297 1,393,529
Property and equipment, net 243,239 270,693
Other assets 28,591 28,591
Total assets 1,463,127 1,692,813
Current liabilities:    
Accounts payable 670,802 813,505
Convertible notes payable 1,847,036 755,800
Obligations under capital lease 52,670 56,680
Accrued liabilities 997,933 855,264
Deposits and deferred revenue 200,000 103,370
Total current liabilities 3,768,441 2,584,619
Obligations under capital lease, long-term    10,480
Convertible notes payable    1,631,072
Total liabilities 3,768,441 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, 129,057,780 and 119,699,286 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively 129,058 119,699
Additional paid-in capital 116,925,971 115,332,346
Accumulated deficit (119,360,343) (117,985,403)
Total stockholders' deficit (2,305,314) (2,533,358)
Total liabilities and stockholders' deficit $ 1,463,127 $ 1,692,813

Balance Sheets (Parenthetical)

v2.4.0.6
Balance Sheets (Parenthetical) (USD $)
Mar. 31, 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 129,057,780 119,699,286
Common stock shares outstanding 129,057,780 119,699,286

Consolidated Statements of Operations

v2.4.0.6
Consolidated Statements of Operations (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Revenues    
Government contracts $ 478,826 $ 416,166
Contract research 312,051 67,212
Product sales 72,701 68,870
License fees and royalties 56,073 177,300
Other 29,059 47,588
Total revenues 948,710 777,136
Research and development 867,672 1,320,147
Selling, general and administrative expenses 747,781 975,123
Operating costs and expenses 1,615,453 2,295,270
Loss from operations (666,743) (1,518,134)
Interest expense (708,202) (89,911)
Interest income 5 846
Loss before taxes (1,374,940) (1,607,199)
Provision for taxes      
Net loss $ (1,374,940) $ (1,607,199)
Loss per share - Basic and Diluted $ (0.01) $ (0.01)
Weighted average shares outstanding - Basic and Diluted 123,137,188 119,061,376

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Statement of Cash Flows [Abstract]    
Net loss $ (1,374,940) $ (1,607,199)
Depreciation and amortization expense 27,454 26,121
Amortization of discount on debt 637,296 54,272
Stock based compensation expense 33,414 96,327
Accounts receivable, trade (82,122) 288,874
Prepaid expenses and other assets 603,514 35,205
Accounts payable and accrued liabilities 145,204 264,135
Deposits and deferred revenue 96,630   
Total adjustments 1,461,390 764,934
Net cash provided by (used in) operating activities 86,450 (842,265)
Cash flows from investing activities:    
Capital expenditures    (47,492)
Net cash used in investing activities    (47,492)
Cash flows from financing activities:    
Proceeds from issuance of convertible notes payable 318,000   
Repayment of capital lease obligations and notes payable (85,290) (9,091)
Net cash provided by (used in) financing activities 232,710 (9,091)
Net increase (decrease) in cash and cash equivalents 319,160 (898,848)
Cash and cash equivalents, beginning of period 331,579 3,071,783
Cash and cash equivalents, end of period $ 650,739 $ 2,172,935

1. Basis of Presentation

v2.4.0.6
1. Basis of Presentation
3 Months Ended
Mar. 31, 2013
Accounting Policies [Abstract]  
1. Basis of Presentation

The consolidated financial statements of the Company for the three-month periods ended March 31, 2013 and 2012, have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of the Company’s management, all adjustments necessary to present fairly the financial position, results of operations, and cash flows of the Company as of March 31, 2013 and 2012, and for the periods then ended, have been made. Those adjustments consist of normal and recurring adjustments. The consolidated balance sheet of the Company as of December 31, 2012, has been derived from the audited consolidated balance sheet of the Company as of that date.

 

Certain information and note disclosures normally included in the Company’s 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 the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed with the Securities and Exchange Commission.

 

The results of operations for the three-month period ended March 31, 2013, are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made in the prior period’s consolidated financial statements to conform to the current period’s presentation.

2. Supplemental Cash Flow Information

v2.4.0.6
2. Supplemental Cash Flow Information
3 Months Ended
Mar. 31, 2013
Supplemental Cash Flow Elements [Abstract]  
2. Supplemental Cash Flow Information

Cash paid for interest for the three months ended March 31, 2013 and 2012, was $8,796 and $3,323, respectively. During the three months ended March 31, 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 three months ended March 31, 2012.

3. Notes Payable and Long-Term Debt

v2.4.0.6
3. Notes Payable and Long-Term Debt
3 Months Ended
Mar. 31, 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 $345,500 were issued in the quarter ended March 31, 2013. As of March 31, 2013, there are notes with a total face amount of $2,120,558 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 $307,500 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 $417,500 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 March 31, 2013, there is $273,522 of unamortized discount remaining to be amortized in future periods.

 

A total of $637,296 and $54,272 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
3 Months Ended
Mar. 31, 2013
Equity [Abstract]  
4. Stockholders Equity

During the three months ended March 31, 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 three months ended March 31, 2013, we issued 8,275,461 shares of common stock as the result of the conversion of notes payable and related accrued interest in the amount of $824,437. 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 three months ended March 31, 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
3 Months Ended
Mar. 31, 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 $33,414 and $96,327 in compensation expense in the periods ended March 31, 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
3 Months Ended
Mar. 31, 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 affect on the financial statements. 

2. Supplemental Cash Flow Information (Details Narrative)

v2.4.0.6
2. Supplemental Cash Flow Information (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Supplemental Cash Flow Elements [Abstract]    
Cash paid for interest $ 8,796 $ 3,323
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 $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Notes Payable And Long-Term Debt Details Narrative    
Face amount notes issued $ 2,120,558  
Maturity dates of notes 2013 through March 2014  
Interest rates of notes 5% to 8%  
Unamortized discount 273,522  
Discount amortized to interest expense $ 637,296 $ 54,272

4. Stockholders Equity (Details Narrative)

v2.4.0.6
4. Stockholders Equity (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 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 8,275,461  
Stock issued in conversion of notes payable and related interest, value $ 824,437  

5. Share-Based Payments (Details Narrative)

v2.4.0.6
5. Share-Based Payments (Details Narrative) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Notes to Financial Statements    
Share-based compensation $ 33,414 $ 96,327