Financial Performance - Revenues for 2019 were $30,467,000, a decrease of 46.1% from $56,535,000 in 2018[81] - Net loss for 2019 was $7,852,000, compared to a net loss of $28,000 in 2018, indicating a significant decline in financial performance[81] - The company reported an operating loss of $8,240,000 in 2019, compared to an operating income of $110,000 in 2018[81] - Consolidated cost of sales for 2019 was $19,637 million, down from $36,471 million in 2018, resulting in a gross margin percentage of 36% in 2019 compared to 35% in 2018[128] - Selling, general and administrative expenses decreased by $1,373 million or 7% to $17,191 million in 2019[130] - The company recorded a net loss of $7,852 million for the year ended December 31, 2019, compared to a net loss of $28 million in 2018[124] - Comprehensive loss for 2019 was $8,345,000, compared to a comprehensive loss of $545,000 in 2018[183] - The accumulated deficit increased to $(110,325,000) in 2019 from $(102,495,000) in 2018[180] Assets and Liabilities - Total assets decreased to $32,224,000 in 2019 from $51,719,000 in 2018, reflecting a 37.7% decline[81] - Working capital was $16,698,000 in 2019, down from $23,556,000 in 2018, representing a 29.2% decrease[81] - Total current assets decreased to $21,610,000 in 2019 from $40,717,000 in 2018, representing a decline of 47%[180] - Total liabilities decreased to $6,049,000 in 2019 from $17,667,000 in 2018, a reduction of 65.8%[180] - Cash and cash equivalents as of December 31, 2019 totaled $10,914, down from $12,039 at the end of 2018[152] - Cash, cash equivalents, and restricted cash at the end of 2019 totaled $13,501,000, down from $18,059,000 at the end of 2018[201] Revenue Breakdown - U.S. revenues decreased by $18,005 million or 41% from $43,887 million to $25,882 million, while international revenues decreased by $8,063 million or 64% from $12,648 million to $4,585 million[125] - The APC technology segment reported revenues of $14,082 million for 2019, a decrease of $24,335 million or 63% compared to 2018, primarily due to a decline in backlog[126] - The FUEL CHEM technology segment revenues were $16,385 million for 2019, a decrease of $1,733 million or 10% compared to 2018[127] - International revenues decreased to $4,585,000 in 2019, representing 15% of total revenues, down from 22% in 2018[192] Cash Flow and Activities - Operating activities used $3,387 of cash for the year ended December 31, 2019, compared to a cash inflow of $4,927 in 2018[153][155] - Investing activities used cash of $45 in 2019, a decrease from $569 in 2018, primarily due to equipment purchases[156] - Financing activities used $128 in cash for the year ended December 31, 2019, compared to $12 in 2018, related to the acquisition of common shares[157] Research and Development - Research and development expenses increased slightly to $1,127 million in 2019 from $1,073 million in 2018[131] - The company has invested in research and development for new technologies in air pollution control and fuel treatment[191] Impairments and Charges - The company recorded an impairment charge of $2,965 for the year ended December 31, 2017, related to the carrying value of its office building and land exceeding fair value[107] - An abandonment charge of $127 was recorded in 2019 associated with patent assets in China due to the planned suspension of the APC business operation[109] - The company recorded an abandonment charge of $317 in 2018 for certain international patent assets due to limited business opportunities[110] Tax and Deferred Assets - A valuation allowance on deferred tax assets was established at $15,394, $13,044, and $12,234 for the years ended December 31, 2019, 2018, and 2017 respectively[112] - The company assesses the realizability of deferred tax assets based on future taxable income projections and tax planning strategies[112] - Deferred tax assets increased to $15,443 million in 2019 from $13,293 million in 2018, an increase of 16.2%[279] Goodwill and Intangible Assets - The company performed its annual goodwill impairment analysis as of October 1, 2019, and determined that no impairment of goodwill existed within the FUEL CHEM technology segment[106] - Goodwill allocated to the FUEL CHEM technology segment was $2,116 million as of December 31, 2019, with no impairment recognized for the periods ended December 31, 2019, 2018, and 2017[218] - Amortization expense for intangible assets was $186 million in 2019, down from $193 million in 2018[225] Contracts and Performance Obligations - Contract assets were approximately $1,857 million at December 31, 2019, down from $5,540 million in 2018, a decrease of 66.5%[267] - Contract liabilities decreased to $712 million in 2019 from $1,234 million in 2018, a reduction of 42.3%[268] - The aggregate amount of remaining performance obligations was $9,671 million as of December 31, 2019, with expected revenue recognition of approximately $5,780 million over the next 12 months[270] Miscellaneous - The company has foreign offices in Beijing, China, and Gallarate, Italy, indicating a focus on international market expansion[192] - The company maintains deposits in federally insured financial institutions, minimizing significant credit risk exposure[248] - The provision for income taxes is determined using the asset and liability approach, considering future tax consequences and potential sources of taxable income[240]
Fuel Tech(FTEK) - 2019 Q4 - Annual Report