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Precipio (PRPO)

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares6 Months Ended
Jun. 30, 2019Aug. 06, 2019
Document and Entity Information [Abstract]
Document Type10-Q
Document Period End DateJun. 30,
2019
Entity Registrant NamePRECIPIO, INC.
Entity Current Reporting StatusYes
Entity Filer CategoryNon-accelerated Filer
Entity Small Businesstrue
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding6,093,369
Entity Central Index Key0001043961
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2019
Document Fiscal Period FocusQ2
Amendment Flagfalse

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)Jun. 30, 2019Dec. 31, 2018
CURRENT ASSETS:
Cash $ 1,169,000 $ 381,000
Accounts receivable, net883,000 690,000
Inventories189,000 197,000
Other current assets90,000 525,000
Total current assets2,331,000 1,793,000
PROPERTY AND EQUIPMENT, NET458,000 496,000
OTHER ASSETS:
Operating lease right-of-use assets627,000
Intangibles, net18,764,000 19,291,000
Other assets25,000 25,000
Total assets22,205,000 21,605,000
CURRENT LIABILITIES:
Current maturities of long-term debt, less debt issuance costs103,000 263,000
Current maturities of convertible notes, less debt discounts and debt issuance costs39,000 4,377,000
Current maturities of finance lease liabilities51,000 57,000
Current maturities of operating lease liabilities212,000
Accounts payable2,671,000 5,169,000
Accrued expenses1,655,000 1,940,000
Deferred revenue19,000 49,000
Other current liabilities1,910,000
Total current liabilities4,750,000 13,765,000
LONG TERM LIABILITIES:
Long-term debt, less current maturities and debt issuance costs223,000 253,000
Finance lease liabilities, less current maturities133,000 155,000
Operating lease liabilities, less current maturities421,000
Common stock warrant liabilities2,336,000 1,132,000
Derivative liabilities62,000
Deferred tax liability70,000 70,000
Other long-term liabilities45,000 45,000
Total liabilities7,978,000 15,482,000
COMMITMENTS AND CONTINGENCIES (Note 6)
STOCKHOLDERS? EQUITY:
Preferred stock - $0.01 par value, 15,000,000 shares authorized at June 30, 2019 and December 31, 2018, 47 shares issued and outstanding at June 30, 2019 and December 31, 2018, liquidation preference at par value at June 30, 2019 and December 31, 2018
Common stock, $0.01 par value, 150,000,000 shares authorized at June 30, 2019 and December 31, 2018, 5,993,369 and 2,298,738 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively[1]60,000 23,000
Additional paid-in capital[1]69,428,000 53,796,000
Accumulated deficit(55,261,000)(47,696,000)
Total stockholders' equity14,227,000 6,123,000
Liabilities and stockholders' equity $ 22,205,000 $ 21,605,000
[1]The common stock shares and additional paid-in capital for all periods presented reflect the one-for fifteen reverse stock split, which took effect on April 26, 2019.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical)Jun. 30, 2019$ / sharessharesDec. 31, 2018$ / sharesshares
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share) | $ / shares $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares)15,000,000 15,000,000
Preferred stock, shares issued (in shares)47 47
Preferred stock, shares outstanding (in shares)47 47
Common stock, par value | $ / shares $ 0.01 $ 0.01
Common stock, shares authorized (in shares)150,000,000 150,000,000
Common stock, shares issued (in shares)5,993,369 2,298,738
Common stock, shares outstanding (in shares)5,993,369 2,298,738

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019USD ($)$ / sharessharesJun. 30, 2018USD ($)$ / sharessharesJun. 30, 2019USD ($)$ / sharessharesJun. 30, 2018USD ($)$ / sharesshares
Revenue, net of contractual allowances and adjustments $ 1,199 $ 959 $ 2,116 $ 1,755
less allowance for doubtful accounts(257)(142)(461)(226)
Net sales942 817 1,655 1,529
Total cost of sales770 642 1,445 1,330
Gross profit172 175 210 199
OPERATING EXPENSES:
Operating expenses2,467 2,358 4,564 4,536
Impairment of goodwill294
TOTAL OPERATING EXPENSES2,467 2,358 4,564 4,830
OPERATING LOSS(2,295)(2,183)(4,354)(4,631)
OTHER INCOME (EXPENSE):
Interest expense, net(178)(48)(201)(56)
Warrant revaluation(822)323 (582)584
Loss on modification of warrants(1,128)(1,128)
Derivative revaluation(438)(1)(415)(1)
Gain on settlement of liability, net1,084 6 1,251 147
Loss on litigation(266)(266)
Loss on issuance of convertible notes(1,870)(928)(1,870)(928)
Loss on settlement of equity instruments(385)
Other Income (Expense)(3,618)(648)(3,211)(639)
LOSS BEFORE INCOME TAXES(5,913)(2,831)(7,565)(5,270)
NET LOSS(5,913)(2,831)(7,565)(5,270)
Deemed dividends related to beneficial conversion feature of preferred stock and fair value of consideration issued to induce conversion of preferred stock(334)(3,848)
TOTAL DIVIDENDS(334)(3,848)
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS $ (5,913) $ (3,165) $ (7,565) $ (9,118)
BASIC AND DILUTED LOSS PER COMMON SHARE (IN DOLLARS PER SHARE) | $ / shares[1] $ (1.05) $ (2.29) $ (1.66) $ (8.20)
BASIC AND DILUTED WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING (IN SHARES) | shares[1]5,655,022 1,382,519 4,554,571 1,111,964
Service revenue, net [Member]
Revenue, net of contractual allowances and adjustments $ 1,195 $ 899 $ 2,105 $ 1,690
less allowance for doubtful accounts(257)(142)(461)(226)
Net sales938 757 1,644 1,464
Total cost of sales770 585 1,445 1,273
Clinical research grants [Member]
Revenue, net of contractual allowances and adjustments62 62
Total cost of sales57 57
Other [Member]
Revenue, net of contractual allowances and adjustments $ 4 $ (2) $ 11 $ 3
[1]Net loss per share and the number of shares used in the per share calculations for all periods presented reflect the one-for fifteen reverse stock split, which took effect on April 26, 2019.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in ThousandsPreferred Stock [Member]Common StockAdditional Paid-in Capital [Member]Accumulated Deficit [Member]Total
Balance at beginning of period at Dec. 31, 2017 $ 7 $ 44,560 $ (31,542) $ 13,025
Balance at beginning of period (in shares) at Dec. 31, 20174,935 679,774
Increase (Decrease) in Stockholders' Equity
Net loss(2,439)(2,439)
Conversion of preferred stock into common stock $ 4 (4)
Conversion of preferred stock into common stock (in shares)(4,888)431,022
Issuance of common stock in connection with purchase agreements $ 1 617 618
Issuance of common stock in connection with purchase agreements (in shares)59,457
Issuance of common stock in exchange for cancelation of other current liabilities $ 1 1,896 1,897
Issuance of common stock in exchange for cancelation of other current liabilities (in shares)120,983
Issuance of common stock upon exercise of warrants225 225
Issuance of common stock upon exercise of warrants (in shares)20,000
Stock-based compensation82 82
Balance at end of period at Mar. 31, 2018 $ 13 47,376 (33,981)13,408
Balance at end of period (in shares) at Mar. 31, 201847 1,311,236
Balance at beginning of period at Dec. 31, 2017 $ 7 44,560 (31,542)13,025
Balance at beginning of period (in shares) at Dec. 31, 20174,935 679,774
Increase (Decrease) in Stockholders' Equity
Net loss(5,270)
Conversion of convertible notes into common stock (in shares)212,733
Balance at end of period at Jun. 30, 2018 $ 15 49,455 (37,272)12,198
Balance at end of period (in shares) at Jun. 30, 201847 1,503,969
Balance at beginning of period at Mar. 31, 2018 $ 13 47,376 (33,981)13,408
Balance at beginning of period (in shares) at Mar. 31, 201847 1,311,236
Increase (Decrease) in Stockholders' Equity
Net loss(2,831)(2,831)
Conversion of convertible notes into common stock (in shares)192,733
Issuance of common stock upon exercise of warrants $ 2 865 867
Issuance of common stock upon exercise of warrants (in shares)192,733
Write-off debt derivative liability in conjunction with convertible note conversions438
Beneficial conversion feature on issuance of notes1,076 1,076
Liability recorded related to equity purchase agreement repricing(460)(460)
Stock-based compensation138 138
Balance at end of period at Jun. 30, 2018 $ 15 49,455 (37,272)12,198
Balance at end of period (in shares) at Jun. 30, 201847 1,503,969
Balance at beginning of period at Dec. 31, 2018 $ 23 [1]53,796 (47,696)6,123
Balance at beginning of period (in shares) at Dec. 31, 201847 2,298,738 [1]
Increase (Decrease) in Stockholders' Equity
Net loss(1,652)(1,652)
Conversion of convertible notes into common stock $ 12 [1]3,114 3,126
Conversion of convertible notes into common stock (in shares)[1]1,248,115
Issuance of common stock in connection with purchase agreements $ 8 [1]1,718 1,726
Issuance of common stock in connection with purchase agreements (in shares)[1]758,076
Write-off debt premiums (net of debt discounts) in conjunction with convertible note conversions315 315
Write-off debt derivative liability in conjunction with convertible note conversions39 39
Stock-based compensation156 156
Balance at end of period at Mar. 31, 2019 $ 43 [1]59,138 (49,348)9,833
Balance at end of period (in shares) at Mar. 31, 201947 4,304,929 [1]
Balance at beginning of period at Dec. 31, 2018 $ 23 [1]53,796 (47,696)6,123
Balance at beginning of period (in shares) at Dec. 31, 201847 2,298,738 [1]
Increase (Decrease) in Stockholders' Equity
Net loss(7,565)
Conversion of warrants into stock (in shares)2,386,425
Balance at end of period at Jun. 30, 2019 $ 60 [1]69,428 (55,261)14,227
Balance at end of period (in shares) at Jun. 30, 201947 5,993,368 [1]
Balance at beginning of period at Mar. 31, 2019 $ 43 [1]59,138 (49,348)9,833
Balance at beginning of period (in shares) at Mar. 31, 201947 4,304,929 [1]
Increase (Decrease) in Stockholders' Equity
Net loss(5,913)(5,913)
Conversion of warrants into stock (in shares)1,138,310
Conversion of convertible notes into common stock $ 12 [1]4,134 4,146
Conversion of convertible notes into common stock (in shares)[1]1,138,310
Issuance of common stock in connection with purchase agreements $ 2 [1]682 684
Issuance of common stock in connection with purchase agreements (in shares)[1]240,000
Write-off debt premiums (net of debt discounts) in conjunction with convertible note conversions(842)(842)
Write-off debt derivative liability in conjunction with convertible note conversions438
Proceeds upon issuance of common stock from exercise of warrants $ 3 [1]1,572 1,575
Proceeds upon issuance of common stock from exercise of warrants (in shares)[1]310,200
Write-off warrant liability in conjunction with warrant exercises2,364 2,364
Beneficial conversion feature on issuance of notes1,792 1,792
Stock-based compensation151 151
Payment of fractional common shares in conjunction with reverse stock split(1)(1)
Payment of fractional common shares in conjunction with reverse stock split (in shares)[1](71)
Balance at end of period at Jun. 30, 2019 $ 60 [1] $ 69,428 $ (55,261) $ 14,227
Balance at end of period (in shares) at Jun. 30, 201947 5,993,368 [1]
[1]The common stock shares and additional paid-in capital for all periods presented reflect the one-for fifteen reverse stock split, which took effect on April 26, 2019.

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)3 Months Ended6 Months Ended12 Months Ended18 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (7,565,000) $ (5,270,000)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization560,000 680,000
Amortization of operating lease right-of-use asset123,000
Amortization of finance lease right-of-use asset30,000
(Accretion) amortization of deferred financing costs, debt discounts and debt premiums(50,000)10,000
Gain on settlement of liability, net $ (1,084,000) $ (6,000)(1,251,000)(147,000)
Loss on settlement of equity instrument385,000
Loss on litigation266,000
Loss on issuance of convertible notes1,870,000 928,000
Stock-based compensation307,000 220,000
Impairment of goodwill294,000
Provision for losses on doubtful accounts463,000 224,000
Warrant revaluation582,000 (584,000)
Loss on modification of warrants1,128,000
Derivative revaluation415,000 1,000
Changes in operating assets and liabilities:
Accounts receivable, net(656,000)(246,000)
Inventories, net8,000 (10,000)
Other assets177,000 263,000
Accounts payable(1,316,000)(27,000)
Operating lease liabilities(117,000)
Accrued expenses and other liabilities139,000 (332,000)
Net cash used in operating activities(4,887,000)(3,611,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment(30,000)(44,000)
Net cash used in investing activities(30,000)(44,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on finance lease obligations(28,000)(31,000)
Payment of deferred financing costs(120,000)(138,000)
Payment of fractional common shares in conjunction with reverse stock split(1,000)
Issuance of common stock, net of issuance costs2,410,000 618,000
Proceeds from exercise of warrants1,575,000 1,092,000
Proceeds from long-term debt300,000
Proceeds from convertible notes2,150,000 1,660,000
Principal payments on convertible notes(50,000)
Principal payments on long-term debt(231,000)(196,000)
Net cash flows provided by financing activities5,705,000 3,305,000
NET CHANGE IN CASH788,000 (350,000)
CASH AT BEGINNING OF PERIOD381,000 421,000 $ 421,000 $ 421,000
CASH AT END OF PERIOD $ 1,169,000 $ 71,000 1,169,000 71,000 $ 381,000 $ 1,169,000
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for interest18,000 26,000
SUPPLEMENTAL DISCLOSURE OF CONSULTING SERVICES OR ANY OTHER NON-CASH COMMON STOCK RELATED ACTIVITY
Purchases of equipment financed through accounts payable34,000
Equipment financed through capital leases107,000
Deferred debt issuance cost financed through accounts payable57,000
Discount of 9% on issuance of convertible bridge notes188,000 164,000
Other current liabilities canceled in exchange for common shares1,897,000
Beneficial conversion feature on issuance of convertible notes1,792,000 1,076,000
Initial valuation of derivative liability recorded in conjunction with issuance of convertible notes1,858,000 142,000
Initial valuation of warrant liability recorded in conjunction with issuance of convertible notes1,205,000
Liabilities exchanged for convertible notes2,150,000
Liability recorded related to equity purchase agreement repricing460,000 460,000
Warrant liability canceled due to settlement of equity instruments $ 456,000
Right-of-use assets obtained in exchange for lease obligations750,000
Amounts included in measurement of lease liabilities144,000
Write-off warrant liability in conjunction with warrant exercises2,364,000
Write-off of debt discounts (net of debt premiums) in conjunction with convertible note conversions527,000
Write-off of derivative liability in conjunction with convertible note conversions477,000
Convertible Debt [Member]
SUPPLEMENTAL DISCLOSURE OF CONSULTING SERVICES OR ANY OTHER NON-CASH COMMON STOCK RELATED ACTIVITY
Conversion of convertible debt plus interest into common stock $ 7,272,000

BUSINESS DESCRIPTION

BUSINESS DESCRIPTION6 Months Ended
Jun. 30, 2019
BUSINESS DESCRIPTION [Abstract]
BUSINESS DESCRIPTION1. BUSINESS DESCRIPTION
Business Description.
Precipio, Inc., and its subsidiary, (“we”, “us”, “our”, the “Company” or “Precipio”) is a cancer diagnostics company providing diagnostic products and services to the oncology market. We have built and continue to develop a platform designed to eradicate the problem of misdiagnosis by harnessing the intellect, expertise and technology developed within academic institutions and delivering quality diagnostic information to physicians and their patients worldwide. We operate a cancer diagnostic laboratory located in New Haven, Connecticut and have partnered with the Yale School of Medicine to capture the expertise, experience and technologies developed within academia so that we can provide a better standard of cancer diagnostics and solve the growing problem of cancer misdiagnosis. We also operate a research and development facility in Omaha, Nebraska which will focus on further development of ICE-COLD-PCR (“ICP”), the patented technology which was exclusively licensed by us from Dana-Farber Cancer Institute, Inc. (“Dana-Farber”) at Harvard University (“Harvard”). The research and development center will focus on the development of this technology, which we believe will enable us to commercialize other technologies developed by our current and future academic partners. Our platform connects patients, physicians and diagnostic experts residing within academic institutions. Launched in 2018, the platform facilitates the following relationships:
·
Patients: patients may search for physicians in their area and consult directly with academic experts that are on the platform. Patients may also have access to new academic discoveries as they become commercially available.
·
Physicians: physicians can connect with academic experts to seek consultations on behalf of their patients and may also provide consultations for patients in their area seeking medical expertise in that physician’s relevant specialty. Physicians will also have access to new diagnostic solutions to help improve diagnostic accuracy.
·
Academic Experts: academic experts on the platform can make themselves available for patients or physicians seeking access to their expertise. Additionally, these experts have a platform available to commercialize their research discoveries.
Going Concern.
The condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America (“GAAP”) applicable for a going concern, which assume that the Company will realize its assets and discharge its liabilities in the ordinary course of business. The Company has incurred substantial operating losses and has used cash in its operating activities for the past several years. As of June 30, 2019, the Company had a net loss of $7.6 million, negative working capital of $2.4 million and net cash used in operating activities of $4.9 million. The Company’s ability to continue as a going concern over the next twelve months from the date of issuance of these condensed consolidated financial statements in the Quarterly Report on Form 10‑Q is dependent upon a combination of achieving its business plan, including generating additional revenue, and raising additional financing to meet its debt obligations and paying liabilities arising from normal business operations when they come due.
To meet its current and future obligations the Company has taken the following steps to capitalize the business and successfully achieve its business plan:
·
The Company has entered into a purchase agreement with Lincoln Park (the “LP Purchase Agreement” or “Equity Line”), pursuant to which Lincoln Park has agreed to purchase from the Company up to an aggregate of $10.0 million of common stock of the Company (subject to certain limitations) from time to time over the term of the LP Purchase Agreement. The extent we rely on Lincoln Park as a source of funding will depend on a number of factors including, the prevailing market price of our common stock and the extent to which we are able to secure working capital from other sources. As of the date of issuance of this Form 10-Q, we have already received $4.1 million in aggregate, including approximately $1.4 million from the sale of 328,590 shares of common stock to Lincoln Park during 2018, $2.4 million from the sale of 998,076 shares of common stock to Lincoln Park during the six months ended June 30, 2019 and $0.3 million from the sale of 100,000 shares of common stock to Lincoln Park from July 1, 2019 through the date of issuance of this Form 10-Q, leaving the Company an additional $5.9 million to draw upon in the coming year.
Notwithstanding the aforementioned circumstances, there remains substantial doubt about the Company’s ability to continue as a going concern over the next twelve months from the issuance of these condensed consolidated financial statements in the Quarterly Report on Form 10‑Q. There can be no assurance that the Company will be able to successfully achieve its initiatives summarized above in order to continue as a going concern over the next twelve months from the date of issuance of the Form 10‑Q. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern and do not include any adjustments that might result should the Company be unable to continue as a going concern as a result of the outcome of this uncertainty.
Nasdaq Compliance
On March 26, 2019, we were notified by the Listing Qualifications Staff of The Nasdaq Stock Market LLC that we did not meet the minimum closing bid price requirement of $1 for continued listing, as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Requirement”). On April 25, 2019 we filed a Certificate of Amendment to our Third Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware, pursuant to which we effected a 1-for-15 reverse stock split (the “Reverse Stock Split”) of our issued and outstanding common stock. The Reverse Stock Split became effective as of 5:00 p.m. (Eastern Time) on April 26, 201 9, and our common stock began trading on a split-adjusted basis on the Nasdaq Capital Market at the market open on April 29, 2019 . On May 15, 2019, we received notification from Nasdaq that the Company’s stock price was in compliance with the Bid Price Requirement, and that the matter is now closed.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES6 Months Ended
Jun. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation.
The accompanying condensed consolidated financial statements are presented in conformity with GAAP. As required under GAAP, pursuant to the Reverse Stock Split , unless otherwise indicated, the Company has adjusted all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying condensed consolidated financial statements.
The condensed consolidated balance sheet as of December 31, 2018 was derived from our audited balance sheet as of that date. There has been no change in the balance sheet from December 31, 2018, except for the retroactive adjustment to reflect the Reverse Stock Split. The accompanying condensed consolidated financial statements as of and for the six months ended June 30, 2019 and 2018 are unaudited and reflect all adjustments (consisting of only normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2018 contained in our Annual Report Form 10‑K, filed with the Securities and Exchange Commission (the “SEC”) on April 16, 2019. The results of operations for the interim periods presented are not necessarily indicative of the results for fiscal year 2019.
Recently Adopted Accounting Pronouncements.
In February 2016, the FASB issued ASU No. 2016‑02, Leases-Topic 842 . The new standard amends the recognition of lease assets and lease liabilities by lessees for those leases currently classified as operating leases and amends disclosure requirements associated with leasing arrangements. The new standard was adopted effective January 1, 2019, using a modified retrospective transition, and thus did not adjust comparative periods. The new standard provides a number of optional practical expedients in transition. The Company has elected the “package of practical expedients”, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight practical expedient. As a result of the adoption of Topic 842 the Company recognized approximately $0.7 million of lease liabilities and corresponding right-of-use (“ROU”) assets in its condensed consolidated balance sheet on the date of initial application. See Note 7 – Leases for additional information.
In June 2018, the FASB issued ASU 2018-07 “ Compensation—Stock Compensation (Topic 718) ”, which expands the scope of Topic 718 to include share based payment transactions for acquiring goods and services from non-employees. The Company adopted this guidance on January 1, 2019. The adoption of this guidance was not material to our condensed consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted
In August 2018, the FASB issued ASU 2018-13 “ Fair Value Measurement (Topic 820) ”, which modifies certain disclosure requirements in Topic 820, such as the removal of the need to disclose the amount of and reason for transfers between Level 1 and Level 2 of the fair value hierarchy, and several changes related to Level 3 fair value measurements. This ASU is effective for reporting periods beginning after December 15, 2019. We are currently assessing the potential impact that the adoption of this ASU will have on our condensed consolidated financial statements.
In August 2018, the FASB issued ASU 2018-15 “ Intangibles—Goodwill and Other—Internal Use Software (Subtopic 350-40) ”, which aligns the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. This ASU is effective for reporting periods beginning after December 15, 2019. We are currently assessing the potential impact that the adoption of this ASU will have on our condensed consolidated financial statements.
In June 2016, the FASB issued ASU 2016-13 “ Measurement of Credit Losses on Financial Instruments ”, which replaces current methods for evaluating impairment of financial instruments not measured at fair value, including trade accounts receivable and certain debt securities, with a current expected credit loss model. This ASU is effective for reporting periods beginning after December 15, 2019. We are currently assessing the potential impact that the adoption of this ASU will have on our condensed consolidated financial statements.
Loss Per Share.
Basic loss per share is calculated based on the weighted-average number of common shares outstanding during each period. Diluted loss per share includes shares issuable upon exercise of outstanding stock options, warrants or conversion rights that have exercise or conversion prices below the market value of our common stock. Options, warrants and conversion rights pertaining to 1,760,336 and 941,882 shares of our common stock have been excluded from the computation of diluted loss per share at June 30, 2019 and 2018, respectively, because the effect is anti-dilutive due to the net loss.
The following table summarizes the outstanding securities not included in the computation of diluted net loss per share:
June 30,
2019
2018
Stock options
501,242
227,337
Warrants
909,189
460,876
Preferred stock
20,888
10,445
Convertible notes
329,017
243,224
Total
1,760,336
941,882

LONG-TERM DEBT

LONG-TERM DEBT6 Months Ended
Jun. 30, 2019
LONG-TERM DEBT [Abstract]
LONG-TERM DEBT3. LONG-TERM DEBT
Long-term debt consists of the following:
Dollars in Thousands
June 30, 2019
December 31, 2018
Department of Economic and Community Development (DECD)
$
263
$
274
DECD debt issuance costs
(26)
(28)
Financed insurance loan
32
204
September 2018 Settlement
57
66
Total long-term debt
326
516
Current portion of long-term debt
(103)
(263)
Long-term debt, net of current maturities
$
223
$
253
Department of Economic and Community Development.
On January 8, 2018, the Company received gross proceeds of $400,000 when it entered into an agreement with the Department of Economic and Community Development (“DECD”) by which the Company received a grant of $100,000 and a loan of $300,000 secured by substantially all of the Company’s assets (the “DECD 2018 Loan”.) The DECD 2018 Loan is a ten-year loan due on December 31, 2027 and includes interest paid monthly at 3.25%.
Debt issuance costs associated with the DECD 2018 Loan were approximately $31,000. Amortization of the debt issuance cost was approximately $2,000 for the six months ended June 30, 2019 and 2018, respectively. Net debt issuance costs were $26,000 and $28,000 at June 30, 2019 and December 31, 2018, respectively and are presented as a reduction of the related debt in the accompanying condensed consolidated balance sheets. Amortization for each of the next five years is expected to be approximately $3,000.
Financed Insurance Loan.
The Company finances certain of its insurance premiums (the “Financed Insurance Loans”). In July 2017 the Company financed $0.4 million with a 4.99 % interest rate and fully paid off such loan as of May 2018. In July 2018, the Company financed $0.4 million with a 4.89% interest rate and will make monthly payments. As of June 30, 2019 and December 31, 2018, the Financed Insurance Loans outstanding balance of $0.1 million and $0.2 million, respectively, was included in current maturities of long-term debt in the Company’s condensed consolidated balance sheet. A corresponding prepaid asset was included in other current assets.
Settlement Agreement.
On September 21, 2018, the Company entered into a settlement and forbearance agreement with a creditor (the “September 2018 Settlement”) pursuant to which, the Company agreed to make monthly principal and interest payments to the creditor over a two year period, from November 1, 2018 to November 1, 2020, in full and final settlement of $0.1 million of indebtedness that was owed to the creditor on the date of the September 2018 Settlement. The settlement amount will accrue interest at the rate of 10% per annum until paid in full. The September 2018 Settlement outstanding balance of $0.1 million was included in long-term debt and accounts payable in the Company’s condensed consolidated balance sheet as of June 30, 2019 and December 31, 2018, respectively.

CONVERTIBLE NOTES

CONVERTIBLE NOTES6 Months Ended
Jun. 30, 2019
LONG-TERM DEBT [Abstract]
CONVERTIBLE NOTES4. CONVERTIBLE NOTES
Convertible notes consist of the following:
Dollars in Thousands
June 30, 2019
December 31, 2018
Convertible bridge notes
$
2,197
$
4,294
Convertible bridge notes discount and debt issuance costs
(2,158)
(1,111)
Convertible bridge notes premiums

647
Convertible promissory notes - Exchange Notes

630
Convertible promissory notes - Exchange notes debt issuance costs

(83)
Total convertible notes
39
4,377
Current portion of convertible notes
(39)
(4,377)
Convertible notes, net of current maturities
$

$

Convertible Bridge Notes.
On April 20, 2018, the Company entered into a securities purchase agreement (the “2018 Note Agreement”) with certain investors (the “April 2018 Investors”), pursuant to which the Company would issue up to approximately $3,296,703 in Senior Secured Convertible Promissory Notes along with warrants (the “Transaction”). The number of warrants is equal to the number of shares of common stock issuable upon conversion of the notes based on the conversion price at the time of issuance. Some of the warrants were issued with a one-year term and some with a five-year term. The 2018 Note Agreement includes customary representations, warranties and covenants by the Company and customary closing conditions.
The Transaction consists of a series of unregistered Senior Secured Convertible Notes (the “Bridge Notes”), bearing interest at a rate of 8% annually and an original issue discount of 9%. The Bridge Notes are convertible at a price of $7.50 per share, provided that if the notes are not repaid within 180 days of the note’s issuance date, the conversion price shall be adjusted to 80% of the lowest volume weighted average price during the prior 10 days, subject to a minimum conversion price of $4.50 per share.
The Transaction consisted of a number of drawdowns. The initial closing on April 20, 2018 provided the Company with proceeds of $1,660,000, net of an original issue discount of 9% and before debt issuance costs, for the issuance of notes with an aggregate principal of $1,824,176 (the “April 2018 Bridge Notes”).
The Bridge Notes are payable by the Company on the earlier of (i) the one year anniversary after each closing date or (ii) upon the closing of a qualified offering, namely the Company raising gross proceeds of at least $7,000,000 (the “Maturity Date”). At any time, provided that the Company gives 5 business days written notice, the Company has the right to redeem the outstanding principal amount of the Bridge Notes, including accrued but unpaid interest, all liquidated damages and all other amounts due under the Bridge Notes, for cash as follows: (i) an amount which is equal to the sum of 105% if the Company exercises its right to redeem the Bridge Notes within 90 days of the initial closing, (ii) 110% if the Company exercises its right to redeem the Bridge Notes within 180 days of the initial closing, or (iii) 115% if the Company exercises its right to redeem 180 days from the initial closing.
The terms of the 2018 Note Agreement also stipulate that upon written demand by one of the April 2018 Investors, for any of their draws throughout the year associated with the 2018 Note Agreement after a period of time as defined within the 2018 Note Agreement, the Company shall file a registration statement within thirty (30) days after written demand covering the resale of all or such portion of the conversion shares for an offering to be made on a continuous basis pursuant to Rule 415. The registration statement filed shall be on Form S‑3 or Form S‑1, at the option of the Company. If the Company does not file a registration statement in accordance with the terms of the 2018 Note Agreement, then on the business day following the applicable filing date and on each monthly anniversary of the business day following the applicable filing date (if no registration statement shall have been filed by the Company in accordance herewith by such date), the Company shall pay to the April 2018 Investors an amount in cash, as partial liquidated damages, equal to 1% per month (pro-rata for partial months) based upon the gross purchase price of the Bridge Notes (calculated on a daily basis) under the 2018 Note Agreement. As requested by certain April 2018 investors, conversion shares related to the April 2018 Note Agreement were included in a registration statement on Form S-3 that the Company filed with the SEC on February 6, 2019 and which became effective with the SEC on February 13, 2019.
The obligations under the Bridge Notes are secured, subject to certain exceptions and other permitted payments by a perfected security interest on the assets of the Company.
The 9% discount associated with the April 2018 Bridge Notes was approximately $164,000 and was recorded as a debt discount. The Company also incurred legal and advisory fees associated with the April 2018 Bridge Notes of approximately $164,000 and these were recorded as debt issuance costs.
As part of the initial closing, the April 2018 Investors received 243,224 warrants to purchase shares of common stock of the Company (the “April 2018 Warrants”). The April 2018 Warrants had an initial value of approximately $1.1 million at the date of issuance and were recorded as a liability with an offset to debt discount.
Pursuant to a letter agreement, dated as of April 20, 2018 (the “Letter Agreement”), the Company engaged a registered broker dealer as a financial advisor (the “Financial Advisor”). Pursuant to the Letter Agreement, the Company paid the Financial Advisor a fee of $116,000, approximately 7% of the proceeds from the sale of the April 2018 Bridge Notes. This is included in the debt issuance costs discussed above. Per the Letter Agreement, the Company also issued to the Financial Advisor 15,466 warrants to purchase shares of common stock of the Company with an exercise price of $11.25 (the “Advisor Warrants”) which were classified as a liability. See Note 9 –Fair Value for further discussion.
The April 2018 Bridge Notes contained a beneficial conversion feature valued at $1.1 million which was recorded as a debt discount with an offset to additional paid in capital at the note issuance date.
The Company reviewed the redemption features of the Bridge Notes and determined that there is a redemption feature (the “Bridge Notes Redemption Feature”) that qualifies as an embedded derivative. For the April 2018 Bridge Notes, the Company determined the initial fair value of the derivative at the time of issuance to be approximately $0.1 million which was recorded as a debt discount with an offset to derivative liability. See Note 9 –Fair Value for further discussion.
As detailed above, debt discounts and debt issuance costs related to the April 2018 Bridge Notes totaled $2.7 million. During the six months ended June 30, 2018, since the costs exceeded the $1.8 million face amount of the debt, the Company recorded $1.8 million of debt discount and debt issuance costs as a reduction of the related debt with the excess $0.9 million expensed as a loss on issuance of convertible notes in the consolidated statements of operations. The debt discount and debt issuance costs will be amortized to interest expense over the life of the April 2018 Bridge Notes on a basis that approximates the effective interest method. Amortization of the discount was zero for the three and six months ended June 30, 2019. Amortization of the discount was $9,000 for the three and six months ended June 30, 2018 and is included in interest expense in the unaudited condensed consolidated statements of operations.
On April 16, 2019, the Company entered into an amendment and restatement agreement (“Amendment No.2 Agreement”) amending and restating the terms of the 2018 Note Agreement (as first amended pursuant to the amendment agreement in November 2018 (the Amendment Agreement”)). The Amendment No. 2 Agreement provided the Company with approximately $900,000 of gross proceeds for the issuance of notes with an aggregate principal of $989,011 (the “April 2019 Bridge Notes”) together with applicable warrants, with substantially the same terms and conditions as the previously issued Bridge Notes and related warrants . The 9% discount associated with the April 2019 Bridge Notes was approximately $89,000 and was recorded as a debt discount. In connection with the April 2019 Bridge Note issuances, the Company issued to the investors 147,472 warrants to purchase shares of common stock of the Company with a five year term and exercise price of $5.40 (the “April 2019 Warrants”). The April 2019 Warrants had an initial value of approximately $1.0 million at the date of issuance and were recorded as a liability with an offset to debt discount. See Note 9 – Fair Value for further discussion. The April 2019 Bridge Notes were issued to investors that previously participated in the 2018 Note Agreement.
The conversion price of the April 2019 Bridge Notes shall be equal to the greater of $3.75 or $0.75 above the closing bid price of our common stock on the date prior to the original issue date. In the event the notes are not paid in full prior to 180 days after the original issue date, the conversion price shall be equal to 80% of the lowest volume weighted average price (“VWAP”) in the 10 trading days prior to the date of the notice of conversion, but in no event below the floor price of $2.25.
The Company reviewed the conversion option of the April 2019 Bridge Notes and determined that there was a beneficial conversion feature with a value of approximately $0.9 million which was recorded as a debt discount with an offset to additional paid in capital. The April 2019 Bridge Notes also contain the Bridge Notes Redemption Feature and the Company performed a valuation at the time of issuance which resulted in zero value, at that time, due to the high value of the conversion feature and a limited upside from the redemption premium.
Debt discounts and debt issuance costs related to the April 2019 Bridge Notes totaled $2.0 million. Since the costs exceeded the $1.0 million face amount of the debt at issuance, the Company recorded $1.0 million of debt discount and debt issuance costs as a reduction of the related debt in the accompanying consolidated balance sheet with the excess $1.0 million expensed as a loss on issuance of convertible notes in the consolidated statements of operations during the three and six months ended June 30, 2019.
Pursuant to the Amendment No.2 Agreement, previously issued warrants were amended such that the exercise price of such warrants was amended from $7.50 to $5.40 and any warrant that had a one-year term was amended to have a five-year term. The Company reviewed the amendments to the warrants and determined that they will be treated as a modification of an outstanding equity instrument at the time of the Amendment No.2 Agreement. Management calculated the change in fair value due to the modifications to be an expense of approximately $1.1 million which is included in loss on modification of warrants in the condensed consolidated statements of operations.
On May 14, 2019, the Company entered into a securities purchase agreement pursuant to which, the Company was provided with $1,000,000 of gross proceeds for the issuance of notes with an aggregate principal of $1,098,901 (the “May 2019 Bridge Notes”) together with applicable warrants, with substantially the same terms and conditions as the previously issued Bridge Notes and related warrants . The 9% discount associated with the May 2019 Bridge Notes was approximately $99,000 and was recorded as a debt discount. In connection with the May 2019 Bridge Note issuances, the Company issued to the investors 154,343 warrants to purchase shares of common stock of the Company with a five year term and exercise price of $9.56 (the “May 2019 Warrants”). The May 2019 Warrants had an initial value of approximately $0.9 million at the date of issuance and were recorded as a liability with an offset to debt discount. See Note 9 – Fair Value for further discussion. The May 2019 Bridge Notes were issued to investors that previously participated in the 2018 Note Agreement.
The conversion price of the May 2019 Bridge Notes is $7.12, provided that a) in the event the notes are not paid in full prior to 180 days after the original issue date or b) upon a registration statement (as defined in the purchase agreement) being declared effective, whichever occurs earlier, the conversion price shall be equal to 80% of the lowest VWAP in the 10 trading days prior to the date of the notice of conversion, but in no event below the floor price of $2.25.
The Company reviewed the conversion option of the May 2019 Bridge Notes and determined that there was a beneficial conversion feature with a value of approximately $0.9 million which was recorded as a debt discount with an offset to additional paid in capital. The May 2019 Bridge Notes also contain the Bridge Notes Redemption Feature and the Company performed a valuation at the time of issuance which resulted in zero value, at that time, due to the high value of the conversion feature and a limited upside from the redemption premium.
Debt discounts and debt issuance costs related to the May 2019 Bridge Notes totaled $2.0 million. Since the costs exceeded the $1.1 million face amount of the debt, the Company recorded $1.1 million of debt discount and debt issuance costs as a reduction of the related debt in the accompanying consolidated balance sheet with the excess $0.9 million expensed as a loss on issuance of convertible notes in the consolidated statements of operations during the three and six months ended June 30, 2019.
Since the issuance of all the 2018 and 2019 Bridge Notes, $4.4 million of the total $6.6 million of convertible bridge notes, plus interest, have been converted into a total of 1,869,352 shares of common stock of the Company. This included the conversion of approximately $2.1 million and $4.2 million of Bridge Notes, plus interest, converted into 756,588 and 1,776,018 shares of common stock of the Company during the three and six months ended June 30, 2019, respectively.
As a result of the bridge note conversions, the Company wrote off approximately $0.4 million of derivative liability, with an offset to additional paid-in capital, during the three and six months ended June 30, 2019.
During the three and six months ended June 30, 2019 and 2018, the change in Bridge Note debt discounts and debt premiums was as follows:
(Dollars in thousands)
For the Three Months Ended June 30,
2019
2018
Debt Discounts
Debt Premiums
Debt Discounts
Debt Premiums
Beginning balance at April 1
$
(1,053)
$
91
$

$

Additions:
(2,086)

(1,824)

Deductions:
Amortization (accretion) (1)
55
(7)
9

Write-off related to note conversions (2)
926
(84)


Balance at June 30
$
(2,158)
$

$
(1,815)
$

For the Six Months Ended June 30,
2019
2018
Debt Discounts
Debt Premiums
Debt Discounts
Debt Premiums
Beginning balance at January 1
$
(1,111)
$
647
$

$

Additions:
(2,086)

(1,824)

Deductions:
Amortization (accretion) (1)
113
(167)
9

Write-off related to note conversions (2)
926
(480)


Balance at June 30
$
(2,158)
$

$
(1,815)
$

(1)
Amortization/accretion is recognized as interest expense/income within the condensed consolidated statements of operations based on the effective interest method.
(2)
Write-offs associated with note conversions are recognized as an offset to additional paid-in capital at the time of the conversion.
The remaining debt discounts of $2.2 million, as of June 30, 2019, are expected to be fully amortized by the end of the second quarter of 2020.
Convertible Promissory Notes – Exchange Notes.
In 2017, the Company entered into Debt Settlement Agreements (the “Settlement Agreements”) with certain of its accounts payable and accrued liability vendors (the “Creditors”) pursuant to which the Creditors, who were owed $6.3 million (the “Debt Obligations”) by the Company, agreed to reduce and exchange the Debt Obligations for a secured obligation in the amount of $3.2 million, $1.9 million in shares of the Company’s common stock and 7,207 warrants to purchase shares of the Company’s common stock (“Creditor Warrants”).
During 2018, the Company entered into Exchange Agreements (the “Exchange Agreements”) with three institutional investors (the “Holders”) pursuant to which the Company issued or shall issue convertible promissory notes, due January 1, 2021 (the “Exchange Notes”) in exchange (the “Exchange”) for amounts owed to the Holders pursuant to certain debt settlement agreements, dated October 31, 2017. At the time of the Exchange Agreements, $3.2 million of Secured Debt Obligations were exchanged for $2.8 million of Exchange Notes (the “Exchange Notes”). Pursuant to the terms of the Exchange Notes, the Company shall pay to the Holders the aggregate principal amount of the Exchange Notes in eighteen equal installments beginning on August 1, 2019 and ending on January 1, 2021.
The Company reviewed the Conversion Option and concluded that it meets the criteria for derivative accounting and requires bifurcation and separate accounting as a derivative. The Company determined the initial fair value of the derivative at the time of issuance to be approximately $0.4 million which was recorded as a debt discount with an offset to derivative liability. See Note 9 –Fair Value for further discussion.
The Company reviewed the Company Put Option and concluded that it meets the criteria for derivative accounting and requires bifurcation and separate accounting as a derivative. The Company determined the initial fair value of the derivative at the time of issuance to be immaterial.
Since the issuance of the Exchange Notes, the Holders have converted all $2.8 million into a total of 446,913 shares of common stock of the Company. This included the conversion of approximately zero and $0.6 million of Exchange Notes converted into zero and 155,351 shares of common stock of the Company during the three and six months ended June 30, 2019, respectively.
As of June 30, 2019 and December 31, 2018, the outstanding balance of the Exchange Notes, net of discounts, was zero and $0.6 million, respectively, and was presented within convertible notes in the Company’s condensed consolidated balance sheets.
There was no Exchange Note activity during the three months ended June 30, 2019. During the six months ended June 30, 2019, the change in Exchange Note debt discounts was as follows:
(Dollars in thousands)
2019
Beginning balance at January 1
$
(83)
Deductions:
Amortization (1)
2
Write-off related to note conversions (2)
81
Balance at June 30
$

(1)
Amortization is recognized as interest expense within the condensed consolidated statements of operations based on the effective interest method.
(2)
Write-offs associated with note conversions are recognized as an offset to additional paid-in capital at the time of the conversion.
As a result of the conversions, the Company has also written off approximately $0.4 million of derivative liability with an offset to additional paid-in capital, of which less than $0.1 million was during the six months ended June 30, 2019.
Convertible Promissory Notes – Crede Note.
On January 15, 2019, the Company and Crede Capital Group LLC (“Crede”) entered into an amendment and restatement agreement (the “Crede Amendment Agreement”) in order to enable the Company to provide Crede with an alternative means of payment of a previous settlement amount, See Note 5 – Accrued Expenses and Other Current Liabilities, by issuing to Crede a convertible note in the amount of $1.45 million (the “Crede Note”). The conversion price of the Crede Note shall equal 90% of the closing bid price of the Company’s common stock on the date prior to each conversion date. The Crede Note is payable by the Company on the earlier of (i) January 15, 2021 or (ii) upon the closing of a qualified offering in which the Company receives gross proceeds of at least $4.0 million. The Crede Note may not be converted if, after giving effect to the conversion, Crede together with its affiliates would beneficially own in excess of 4.99% of the outstanding shares of the Company’s common stock. The Company, at its option, may redeem some or all of the then outstanding principal amount of the Crede Note for cash.
In accordance with the terms of the Crede Amendment Agreement, during the period commencing on the date of issuance of the Crede Note and ending on the date Crede no longer beneficially owns any portion of the Crede Note, Crede shall not sell, on any given trading day, more than the greater of (i) $10,000 of common stock (subject to adjustment for any stock splits or combinations, stock dividends, recapitalizations or similar event after the date hereof) and (ii) 10% of the daily average composite trading volume of the Company’s common stock as reported by Bloomberg, LP (subject to adjustment for any stock splits or combinations, stock dividends, recapitalizations or similar event after the date hereof) for such trading day .
During the three and six months ended June 30, 2019, the Company made no payments on the Crede Note. On April 16, 2019, the entire outstanding amount of $1.45 million was converted into 270,699 shares of common stock of the Company and as of June 30, 2019 the remaining amount due on the Crede Note was zero.
Convertible Promissory Notes – Leviston Note
On February 8, 2018, the Company entered into an equity purchase agreement (the “2018 Purchase Agreement”) with Leviston Resources LLC (“Leviston”), see Note 8 – Stockholders Equity for details of the 2018 Purchase Agreement. On January 29, 2019, the Company entered into a settlement agreement (the “Leviston Settlement”) with Leviston pursuant to which the Company issued to Leviston a convertible note in the amount of $0.7 million (the “Leviston Note”) in full satisfaction of certain obligations to Leviston. The Leviston Note is payable by the Company (i) in fourteen equal monthly installments commencing on the earlier to occur of (x) the last day of the month upon which a registration statement to be filed by the Company covering the resale of the shares of common stock underlying the Leviston Note is declared effective by the Securities and Exchange Commission and (y) the six month anniversary of the date of issuance, (ii) upon the closing of a qualified offering, namely the Company raising gross proceeds of at least $4.0 million or (iii) such earlier date as the Leviston Note is required or permitted to be repaid pursuant to its terms. The Company, at its option, may redeem some or the entire then outstanding principal amount of the Leviston Note for cash.
The conversion price in effect on any conversion date shall equal the VWAP of the common stock on such Conversion Date. The Leviston Note may not be converted if, after giving effect to the conversion, Leviston together with its affiliates, would beneficially own in excess of 4.99% of the outstanding shares of the Company’s common stock.
In accordance with the terms of the Leviston Settlement, during the period commencing on the issuance date of the Leviston Note and ending on the date Leviston no longer beneficially owns any shares of common stock issuable upon conversion of the Leviston Note, Leviston shall not sell, on any given trading day, more than the greater of (i) $10,000 of common stock (subject to adjustment for any stock splits or combinations, stock dividends, recapitalizations or similar event after the date hereof) and (ii) 10% of the daily average composite trading volume of the Company’s common stock as reported by Bloomberg, LP (subject to adjustment for any stock splits or combinations, stock dividends, recapitalizations or similar event after the date hereof) for such trading day.
In addition to the Leviston Settlement and the Leviston Note, the Company and Leviston have each executed a release pursuant to which each of the Company and Leviston agreed to release the other party from their respective obligations arising from or concerning the Obligations.
During the three and six months ended June 30, 2019, the Company made cash payments of zero and less than $0.1 million, respectively, on the Leviston Note. During the three and six months ended June 30, 2019, $0.5 million and $0.7 million of the Leviston note was converted into 111,023 and 184,357 shares of common stock of the Company, respectively. As of June 30, 2019, the remaining amount due on the Leviston Note was zero. As of December 31, 2018, the Company had recorded liabilities related to Leviston of $0.5 million and $0.2 million which were included in other current liabilities and accrued expenses, respectively, in the condensed consolidated balance sheet.

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES6 Months Ended
Jun. 30, 2019
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES5. ACCRUED EXPENSES OTHER CURRENT LIABILITIES.
Accrued expenses at June 30, 2019 and December 31, 2018 are as follows:
(dollars in thousands)
June 30, 2019
December 31, 2018
Accrued expenses
$
1,325
$
1,583
Accrued compensation
277
118
Accrued interest
53
239
$
1,655
$
1,940
The Company was able to reduce certain accrued expense and accounts payable amounts through negotiations with certain vendors to settle outstanding liabilities and the Company recorded these amounts as gains which are included in gain on settlement of liability, net. During the three and six months ended June 30, 2019, approximately $1.1 million and $1.3 million, respectively, was recorded as a gain. Similarly, the Company recorded a net gain of less than $0.1 million and $0.1 million during the three and six months ended June 30, 2018, respectively.
Other current liabilities are as follows:
(dollars in thousands)
June 30, 2019
December 31, 2018
Liability related to equity purchase agreement

460
Liability for settlement of equity instrument

1,450
$

$
1,910
On February 20, 2018, Crede filed a lawsuit against the Company in the Supreme Court of the State of New York for Summary Judgment in Lieu of Complaint requiring the Company to pay cash owed to Crede. On March 12, 2018, Precipio entered into a settlement agreement (the “Crede Agreement”) with Crede pursuant to which Precipio agreed to pay Crede a total sum of $1.925 million over a period of 16 months payable in cash, or at the Company’s discretion, in stock, in accordance with terms contained in the Crede Agreement.
As of the date of the Crede Agreement, the fair value of the common stock warrant liability related to Crede was revalued to approximately $0.4 million, resulting in a gain of $0.2 million included in warrant revaluation in the unaudited condensed consolidated statement of operations during the three months ended March 31, 2018. At the time of the Crede Agreement, the Company recorded an additional loss of $0.4 million, which is included in loss on settlement of equity instruments in the unaudited condensed consolidated statement of operations for the six months ended June 30, 2018. During 2018, the Company paid approximately $0.5 million to Crede, with a remaining balance of $1.45 million as of December 31, 2018. O n January 15, 2019 the $1.45 million liability was replaced with the Crede Note.
As of December 31, 2018, the Company had recorded a liability of approximately $0.5 million related to an equity purchase agreement with Leviston, which is included in other current liabilities on our condensed consolidated balance sheet. On January 29, 2019, the Company entered into the Leviston Settlement pursuant to which the Company issued the Leviston Note in full satisfaction of the $0.5 million discussed above along with approximately $0.2 million of other obligations owed to Leviston which are included in accrued expenses in our condensed consolidated balance sheet at December 31, 2018. See Note 4 – Convertible Notes.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES6 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES6. COMMITMENTS AND CONTINGENCIES
The Company is involved in legal proceedings related to matters, which are incidental to its business. Also, the Company is delinquent on the payment of outstanding accounts payable for certain vendors and suppliers who have taken or have threatened to take legal action to collect such outstanding amounts. See below for a discussion on these matters.
LITIGATIONS
On February 21, 2017, XIFIN, Inc. (“XIFIN”) filed a lawsuit against us in the District Court for the Southern District of California alleging breach of written contract and seeking recovery of approximately $0.27 million owed by us to XIFIN for damages arising from a breach of our obligations pursuant to a Systems Services Agreement between us and XIFIN, dated as of February 22, 2013, as amended and restated on September 1, 2014. A liability of $0.1 million was reflected in accounts payable within the accompanying condensed consolidated balance sheet at December 31, 2018. On April 19, 2019, the Company executed a settlement agreement with XIFIN pursuant to which the Company paid to XIFIN an agreed amount of $40,000 as settlement in consideration for total release from all outstanding amounts due and payable by the Company to XIFIN. The settlement amount was paid in full by the Company on April 19, 2019 .
CPA Global provides us with certain patent management services. On February 6, 2017, CPA Global claimed that we owe approximately $0.2 million for certain patent maintenance services rendered. CPA Global has not filed claims against us in connection with this allegation. A liability of approximately less than $0.1 million has been recorded and is reflected in accounts payable within the accompanying condensed consolidated balance sheets at June 30, 2019 and December 31, 2018.
On February 17, 2017, Jesse Campbell (“Campbell”) filed a lawsuit individually and on behalf of others similarly situated against us in the District Court for the District of Nebraska alleging we had a materially incomplete and misleading proxy relating to a potential merger and that the merger agreement’s deal protection provisions deter superior offers. As a result, Campbell alleges that we have violated Sections 14(a) and 20(a) of the Exchange Act and Rule 14a‑9 promulgated thereafter. The Company filed a motion to dismiss all claims, which motion was fully briefed on November 27, 2017. The Court granted the Company’s motion in full on May 3, 2018 and dismissed the lawsuit. The Eighth Circuit reversed the decision of the District Court and remanded the case back to the District Court. The parties filed a notice with the Court on May 22, 2019, announcing that they had reached a settlement in principle. On June 21, 2019, the parties filed a stipulation of settlement, in which defendants are released from all claims and expressly deny that that they have committed any act or omission giving rise to any liability. The stipulation includes a settlement payment of $1.95 million, which will be primarily funded by our insurance. On July 10, 2019, the Court entered an order preliminarily approving the settlement. The settlement remains subject to final approval by the Court. The Company’s insurance policy includes a deductible of approximately $0.8 million and the Company has previously paid approximately $0.5 million in legal fees in connection with the litigation which have been applied to the deductible leaving approximately $0.3 million to be paid by the Company and approximately $1.7 million to be paid by the insurance company. A liability of approximately $0.3 million has been recorded and is reflected in accrued expenses within the accompanying condensed consolidated balance sheets at June 30, 2019.
On March 21, 2018, Bio-Rad Laboratories filed a lawsuit against us in the Superior Court Judicial Branch of the State of Connecticut for Summary Judgment in Lieu of Complaint requiring us to pay cash owed to Bio-Rad in the amount of $39,000 that was recorded in accounts payable within the accompanying condensed consolidated balance sheet at December 31, 2018. Subsequently, the obligation was paid in full during the second quarter 2019 resulting in no remaining amount due to Bio-Rad as of the filing of this Quarterly Report on Form 10-Q.
OTHER COMMITMENTS
On January 2, 2019, the Company entered into a settlement agreement with a third party service provider pursuant to which we agreed to pay the service provider an aggregate amount of approximately $0.6 million, plus accrued interest at a rate of 8%, pursuant to an agreed upon payment schedule, ending in September 2019, in consideration for the cancellation of an outstanding debt owed by the Company to the service provider in the aggregate amount of approximately $1.5 million (the “Owed Amount”) which was recorded in accounts payable at December 31, 2018. During the three and six months ended June 30, 2019, the Company made payments of $0.4 million and $0.6 million, respectively, to the service provider as payment in full of the agreed upon payment schedule. The service provider waived the difference between the settlement amount and the Owed Amount and, as such, the Company recorded a gain on settlement of approximately $0.9 million which is included in gain on settlement of liability, net in the condensed consolidated statements of operations for the three and six months ended June 30, 2019. There was no remaining balance due on the Owed Amount at June 30, 2019.
LEGAL AND REGULATORY ENVIRONMENT
The healthcare industry is subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are not limited to, matters such as licensure, accreditation, government healthcare program participation requirement, reimbursement for patient services and Medicare and Medicaid fraud and abuse. Government activity has increased with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by healthcare providers.
Violations of these laws and regulations could result in expulsion from government healthcare programs together with the imposition of significant fines and penalties, as well as significant repayments for patient services previously billed. Management believes that the Company is in compliance with fraud and abuse regulations, as well as other applicable government laws and regulations. While no material regulatory inquiries have been made, compliance with such laws and regulations can be subject to future government review and interpretation, as well as regulatory actions unknown or unasserted at this time.

LEASES

LEASES6 Months Ended
Jun. 30, 2019
Leases [Abstract]
LEASES7. LEASES
On January 1, 2019, the Company recorded initial ROU assets and corresponding operating lease liabilities of approximately $750,000 and a reversal of deferred rent and prepaid expenses of approximately $6,000 resulting in no cumulative effect adjustment upon adoption of Topic 842. The Company leases administrative facilities and laboratory equipment through operating lease agreements. In addition we rent various equipment used in our diagnostic lab and in our administrative offices through finance lease arrangements. Our operating leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common area or other maintenance costs). The facility leases include one or more options to renew, from 1 to 5 years or more. The exercise of lease renewal options is typically at our sole discretion, therefore, the renewals to extend the lease terms are not included in our ROU assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and, when they are reasonably certain of exercise, we include the renewal period in our lease term. As our leases do not provide an implicit rate, we use our collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.
Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The primary leases we enter into with initial terms of 12 months or less are for equipment.
Upon the adoption of Topic 842, our accounting for finance leases, previously referred to as capital leases, remains substantially unchanged from prior guidance.
The balance sheet presentation of our operating and finance leases is as follows:
(dollars in thousands)
Classification on the Condensed Consolidated Balance Sheet
June 30, 2019
Assets:
Operating lease assets
Operating lease right-of-use assets
$
627
Finance lease assets
Property and equipment, net
193
Total lease assets
$
820
Liabilities:
Current:
Operating lease obligations
Current maturities of operating lease liabilities
$
212
Finance lease obligations
Current maturities of finance lease liabilities
51
Noncurrent:
Operating lease obligations
Operating lease liabilities, less current maturities
421
Finance lease obligations
Finance lease liabilities, less current maturities
133
Total lease liabilities
$
817
As of June 30, 2019, the estimated future minimum lease payments, excluding non-lease components, are as follows:
(dollars in thousands)
Operating Leases
Finance Leases
Total
Remainder of 2019
$
129
$
35
$
164
2020
242
46
288
2021
241
38
279
2022
48
32
80
2023
35
27
62
Thereafter
17
41
58
Total lease obligations
712
219
931
Less: Amount representing interest
(79)
(35)
(114)
Present value of net minimum lease obligations
633
184
817
Less, current portion
(212)
(51)
(263)
Long term portion
$
421
$
133
$
554
Other information as of June 30, 2019:
Weighted-average remaining lease term (years):
Operating leases
3.0
Finance leases
4.8
Weighted-average discount rate:
Operating leases
Finance leases
During the six months ended June 30, 2019, operating cash flows from operating leases was $144,000 and ROU assets obtained in exchange for operating lease liabilities was $750,000.
Operating Lease Costs
Operating lease costs were $0.1 million and $0.2 million during the three and six months ended June 30, 2019, respectively, and $0.1 million for both the three and six months ended June 30, 2018, respectively. These costs are primarily related to long-term operating leases for the Company’s facilities and laboratory equipment.
Finance Lease Costs
Finance leases are included in property and equipment, net and finance lease liabilities, less current maturities on the condensed consolidated balance sheets. The associated amortization expense and interest included in the condensed consolidated statements of operations for both the three and six months ended June 30, 2019 is less than $0.1 million, respectively.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY6 Months Ended
Jun. 30, 2019
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY8. STOCKHOLDERS’ EQUITY
Common Stock.
Pursuant to our Third Amended and Restated Certificate of Incorporation, as amended, we currently have 150,000,000 shares of common stock authorized for issuance. On December 20, 2018, the Company’s shareholders approved the proposal to authorize the Company’s Board of Directors to, in its discretion, amend the Company’s Third Amended and Restated Certificate of Incorporation to increase the total number of authorized shares of common stock from 150,000,000 shares to 250,000,000 shares. The Company has not yet effected this increase.
On February 12, 2018, the Company issued 120,983 shares of its common stock in exchange for approximately $1.9 million of debt obligations. See Note 4 – Convertible Notes.
During the six months ended June 30, 2018, the Company issued 208,000 shares of its common stock in connection with conversions of its Series B Preferred Stock and 223,022 shares of its common stock in connection with conversions of its Series C Preferred Stock. Aside from 4,000 shares of common stock issued in connection with conversions of its Series C Preferred Stock, all of the shares of common stock issued for the six months ended June 30, 2018 in connection with conversions of its Series B Preferred Stock and Series C Preferred Stock (together the “Preferred Stock”) were issued after the Company induced the holders of its Preferred Stock to convert their shares of Preferred Stock to shares of the company’s common stock (see below - Preferred Stock induced conversions).
During the three and six months ended June 30, 2018, the Company issued 192,733 and 212,733 shares of its common stock, respectively, in connection with the exercise of 192,733 and 212,733 warrants, respectively. The warrant exercises resulted in net cash proceeds to the Company of approximately $0.9 million and $1.1 million during the three and six months ended June 30, 2018.
During the three and six months ended June 30, 2019, the Company issued 310,200 shares of its common stock in connection with the exercise of 310,200 warrants. The warrant exercises resulted in net cash proceeds to the Company of approximately $1.6 million during the six months ended June 30, 2019.
Also, during the three and six months ended June 30, 2019, the Company issued 1,138,310 and 2,386,425 shares, respectively, of its common stock in connection with the conversion of convertible notes, plus interest, totaling $4.1 million and $7.3 million, respectively. See Note 4 – Convertible Notes.
2018 Purchase Agreement
On February 8, 2018 the Company entered into an equity purchase agreement (the “2018 Purchase Agreement”) with Leviston for the purchase of up to $8,000,000 (the “Aggregate Amount”) of shares (the “ Shares”) of the Company’s common stock from time to time, at the Company’s option. Shares offered and sold prior to February 13, 2018 were issued pursuant to the Company’s shelf registration statement on Form S‑3 (and the related prospectus) that the Company filed with the Securities and Exchange Commission (the “SEC”) and which was declared effective by the SEC on February 13, 2015 (the “Shelf Registration Statement”).
Leviston purchased 48,076 shares (the “Investor Shares”) of the Company’s common stock following the close of business on February 9, 2018, subject to customary closing conditions, at a price per share of $15.60 for approximately $750,000. The shares were sold pursuant to the Shelf Registration Statement. The Company incurred approximately $132,000 in costs which have been treated as issuance costs within additional paid-in capital in the accompanying unaudited condensed consolidated balance sheet.
As required by the terms of the 2018 Purchase Agreement, the Company timely filed an S-1 on April 16, 2018. The S-1 Registration Statement was not declared effective by the SEC and on August 10, 2018 the Company filed a withdrawal request with the SEC. No securities had been issued or sold under this Registration Statement. The Company determined not to proceed with the offering as the Company sought to re-negotiate the terms of the equity purchase agreement in order to comply with the requirements of the SEC pursuant to a letter from the SEC dated August 7, 2018.
In consideration of Leviston’s agreement to enter into the 2018 Purchase Agreement, the Company agreed to pay to Leviston a commitment fee in shares of the Company’s common stock equal in value to 5.25% of the total Aggregate Amount (the “Leviston Commitment Shares”), payable in three installments upon achieving certain milestones. The first installment of 1.75% was due on or before February 12, 2018 and this amount, of $140,000, was paid to Leviston through the issuance of 11,381 shares of the Company’s common stock on February 12, 2018.
In accordance with the terms of the 2018 Purchase Agreement, the Company provided Leviston with a price protection provision, if the Company issues any warrants in connection with issuances, sales or an agreement in writing to issue common stock or common stock equivalents by the Company, Leviston will have the right to receive a proportionate amount of such warrants, cash or shares, at Leviston’s sole election, valued using the Black Scholes formula. As a result of 2018 Note Agreement and the April 2018 Warrants issued, the Company was required to provide Leviston with a proportionate and equivalent coverage in the form of warrants, stock or cash in the amount of approximately $460,000. As Leviston has the ability to elect the form of compensation, the Company has recorded the $460,000 as a liability as of December 31, 2018, within the other current liabilities line of the accompanying condensed consolidated balance sheet.
As of December 31, 2018, the Company had a total of $0.7 million in accruals (see Note 5 – Accrued Expenses and Other Current Liabilities) for potential obligations to Leviston, but had not issued any additional shares or made any payments to Leviston. On January 29, 2019, the Company entered into the Leviston Settlement pursuant to which the Company issued to Leviston the Leviston Note in full satisfaction of all obligations owed to Leviston. See Note 4 – Convertible Notes for further details of the Leviston Note.
LP Purchase Agreement
On September 7, 2018, the Company entered into the LP Purchase Agreement, pursuant to which Lincoln Park has agreed to purchase from the Company up to an aggregate of $10,000,000 of common stock of the Company (subject to certain limitations) from time to time over the term of the LP Purchase Agreement. Pursuant to the terms of the LP Purchase Agreement, on the agreement date, the Company issued 40,000 shares of its common stock to Lincoln Park as consideration for its commitment to purchase shares of common stock of the Company under the LP Purchase Agreement (the “LP Commitment Shares”). Also on September 7, 2018, the Company entered into a registration rights agreement with Lincoln Park (the “LP Registration Rights Agreement”), pursuant to which on September 14, 2018, the Company filed with the SEC a registration statement on Form S-1 to register for resale under the Securities Act of 1933, as amended, or the Securities Act, 466,666 shares of common stock, which includes the LP Commitment Shares, that have been or may be issued to Lincoln Park under the LP Purchase Agreement. The Form S-1 was declared effective by the SEC on September 28, 2018. As of January 16, 2019, all shares registered under this S-1 had been sold and/or issued to Lincoln Park. On February 1, 2019, the Company filed with the SEC a registration statement on Form S-1 to register for resale under the Securities Act of 1933, as amended, or the Securities Act, an additional 1,000,000 shares of common stock that have been or may be issued to Lincoln Park under the LP Purchase Agreement. The Form S-1 was declared effective by the SEC on February 12, 2019.
Under the LP Purchase Agreement, the Company may, from time to time and at its sole discretion, on any single business day on which the closing price of its common stock is not less than $1.50 per share (subject to adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction as provided in the LP Purchase Agreement), direct Lincoln Park to purchase shares of its common stock in amounts up to 30,000 shares, which amounts may be increased to up to 36,666 shares depending on the market price of its common stock at the time of sale and subject to a maximum commitment by Lincoln Park of $1,000,000 per single purchase, which the Company refers to as “regular purchases”, plus other “accelerated amounts” and/or “additional accelerated amounts” under certain circumstances. The Company will control the timing and amount of any sales of its common stock to Lincoln Park. The purchase price of the shares that may be sold to Lincoln Park in regular purchases under the LP Purchase Agreement will be based on the market price of the common stock of the Company preceding the time of sale as computed under the LP Purchase Agreement. The purchase price per share will be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split, or other similar transaction occurring during the business days used to compute such price. The Company may at any time in its sole discretion terminate the LP Purchase Agreement without fee, penalty or cost upon one business day notice. There are no restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages in the LP Purchase Agreement or LP Registration Rights Agreement, other than a prohibition on the Company entering into certain types of transactions that are defined in the LP Purchase Agreement as “Variable Rate Transactions”. Lincoln Park may not assign or transfer its rights and obligations under the Purchase Agreement.
Under applicable rules of The Nasdaq Capital Market, in no event may the Company issue or sell to Lincoln Park under the LP Purchase Agreement more than 19.99% of the shares of its common stock outstanding immediately prior to the execution of the LP Purchase Agreement (which is 308,590 shares based on 1,543,724 shares outstanding immediately prior to the execution of the LP Purchase Agreement), which limitation the Company refers to as the Exchange Cap, unless (i) the Company obtains stockholder approval to issue shares of common stock in excess of the Exchange Cap or (ii) the average price of all applicable sales of the Company’s common stock to Lincoln Park under the LP Purchase Agreement equals or exceeds $7.05 (which represents the closing consolidated bid price of the Company’s common stock on September 7, 2018, plus an incremental amount to account for the issuance of the LP Commitment Shares to Lincoln Park), such that issuances and sales of the Company’s common stock to Lincoln Park under the LP Purchase Agreement would be exempt from the Exchange Cap limitation under applicable Nasdaq rules. In any event, the LP Purchase Agreement specifically provides that the Company may not issue or sell any shares of its common stock under the LP Purchase Agreement if such issuance or sale would breach any applicable Nasdaq rules. The Company received shareholder approval on December 20, 2018.
The LP Purchase Agreement also prohibits the Company from directing Lincoln Park to purchase any shares of common stock if those shares, when aggregated with all other shares of the Company’s common stock then beneficially owned by Lincoln Park and its affiliates, would result in Lincoln Park and its affiliates having beneficial ownership, at any single point in time, of more than 4.99% of the then total outstanding shares of the Company’s common stock, as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 13d-3 thereunder, which limitation the Company refers to as the Beneficial Ownership Cap as defined in the LP Agreement.
As of the date of issuance of this Form 10-Q, we have already received $4.1 million in aggregate, including approximately $1.4 million from the sale of 328,590 shares of common stock to Lincoln Park during 2018, $0.7 million and $2.4 million from the sale of 240,000 and 998,076 shares of common stock to Lincoln Park during the three and six months ended June 30, 2019, respectively, and $0.3 million from the sale of 100,000 shares of common stock to Lincoln Park from July 1, 2019 through the date of issuance of this Form 10-Q .
Preferred Stock.
The Company’s Board of Directors is authorized to issue up to 15,000,000 shares of preferred stock in one or more series, from time to time, with such designations, powers, preferences and rights and such qualifications, limitations and restrictions as may be provided in a resolution or resolutions adopted by the Board of Directors.
Series B Preferred Stock.
On August 25, 2017, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock (“Series B Preferred Stock”) with the State of Delaware which designates 6,900 shares of our preferred stock as Series B Preferred Stock. The Series B Preferred Stock has a stated value of $1,000 per share and a par value of $0.01 per share. The Series B Preferred Stock includes a beneficial ownership blocker but has no dividend rights (except to the extent dividends are also paid on the common stock).
The 2018 Purchase Agreement triggered the down round feature of the Series B Preferred Stock and, as a result, the conversion price of the Company’s Series B Convertible Preferred Stock was automatically adjusted from the reduced $21.00 per share price, related to the 2017 Series C issuance, to $15.60 per share. In connection with the down round adjustment, the Company calculated an incremental beneficial conversion feature of approximately $1.4 million which was recognized as a deemed dividend during the six months ended June 30, 2018 (“Deemed Dividend A”).
The 2018 Inducement Agreement, discussed below, triggered the down round feature of the Series B Preferred Stock and, as a result, the conversion price of the Company’s Series B Convertible Preferred Stock was automatically adjusted from $15.60 per share to $11.25 per share. In connection with the down round adjustment, the Company calculated an incremental beneficial conversion feature of approximately $40,000 which was recognized as a deemed dividend during the six months ended June 30, 2018 (“Deemed Dividend B”).
The 2018 Note Agreement, see Note 4 – Convertible Notes, triggered the down round feature of the Series B Preferred Stock and, as a result, the conversion price of the Company’s Series B Convertible Preferred Stock was automatically adjusted from $11.25 per share to $4.50 per share. In connection with the down round adjustment, the Company calculated an incremental beneficial conversion feature of approximately $0.2 million which was recognized as a deemed dividend at time of the down round adjustment (“Deemed Dividend K”).
During the six months ended June 30, 2018, 2,340 shares of Series B Preferred Stock were converted into 208,000 shares of our common stock.
At June 30, 2019 and December 31, 2018, the Company had 6,900 shares of Series B designated and issued and 47 shares of Series B outstanding.
Series C Preferred Stock
On November 6, 2017, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series C Convertible Preferred Stock (“Series C Preferred Stock”) with the State of Delaware which designates 2,748 shares of our preferred stock as Series C Preferred Stock. The Series C Preferred Stock has a stated value of $1,000 per share and a par value of $0.01 per share.
The conversion price of the Series C Preferred Stock contains a down round feature. The 2018 Purchase Agreement triggered the down round feature of the Series C Preferred Stock and, as a result, the conversion price of the Company’s Series C Convertible Preferred Stock was automatically adjusted from $21.00 per share to $15.60 per share. In connection with the down round adjustment, the Company calculated an incremental beneficial conversion feature of approximately $0.8 million which was recognized as a deemed dividend during the three months ended March 31, 2018 (“Deemed Dividend C”).
During the six months ended June 30, 2018, 2,548 shares of Series C Preferred Stock were converted into 223,022 shares of our common stock.
At June 30, 2019 and December 31, 2018, the Company had 2,748 shares of Series C designated and issued and zero shares of Series C outstanding.
Preferred Stock induced conversions
On March 21, 2018, the Company entered into a letter agreement (the “2018 Inducement Agreement”) with certain holders of shares of the Company’s Series B Preferred Stock and Series C Preferred Stock (together the “Preferred Stock”), and warrants (the “Warrants”) to purchase shares of the Company’s common stock issued in the Company’s public offering in August 2017 and registered direct offering in November 2017. Pursuant to the 2018 Inducement Agreement, the Company and the investors agreed that, as a result of the issuance of shares of common stock pursuant to that Purchase Agreement, dated February 8, 2018, by and between the Company and the investor named therein, and effective as of the time of execution of the 2018 Inducement Agreement, the exercise price of the Warrants was reduced to $11.25 per share (the “Exercise Price Reduction”) and the conversion price of the Preferred Stock was reduced to $11.25 (the “Conversion Price Reduction”). As consideration for the Company’s agreement to the Exercise Price Reduction and the Conversion Price Reduction, (i) each investor agreed to convert the shares of Preferred Stock held by such investor into shares of Common Stock and (ii) one investor agreed to exercise 44,444 Warrants and another investor agreed to exercise 33,333 Warrants all as of the date of the 2018 Inducement Agreement. As discussed above, as of June 30, 2019, all shares of Preferred Stock, except 47 shares of Series B Preferred Stock, were converted to shares of our common stock pursuant to the terms of the 2018 Inducement Agreement and 20,000 Warrants were exercised at the $11.25 exercise price.
The 2018 Inducement Agreement represented an inducement by the Company to convert shares of the Preferred Stock. The conversion price of the Preferred Stock and the exercise price of the Warrants were reduced from $15.60 per share to $11.25 per share, respectively. The Company calculated the fair value of the additional securities and consideration to be approximately $1.2 million (“Deemed Dividend D”). During the six months ended June 30, 2018, this amount was recorded as a charge to additional paid-in-capital and as a deemed dividend resulting in a reduction of income available to common shareholders in our basic earnings per share calculation.
Common Stock Warrants.
The following represents a summary of the warrants outstanding as of June 30, 2019:
Underlying
Exercise
Issue Year
Expiration
Shares
Price
Warrants Assumed in Merger
(1)
2014
April 2020
832
$
1,800.00
(2)
2015
February 2020
1,588
$
1,008.00
(3)
2015
December 2020
272
$
747.00
(4)
2016
January 2021
596
$
544.50
Warrants
(5)
2017
June 2022
2,540
$
41.25
(5)
2017
June 2022
500
$
7.50
(6)
2017
June 2022
6,095
$
105.00
(7)
2017
August 2022
25,201
$
2.25
(8)
2017
August 2022
4,000
$
46.88
(9)
2017
August 2022
47,995
$
150.00
(9)
2017
August 2022
9,101
$
7.50
(10)
2017
August 2022
16,664
$
2.25
(10)
2017
August 2022
7,335
$
2.25
(11)
2017
October 2022
666
$
2.25
(12)
2017
May 2023

$
2.25
(13)
2018
October 2022
7,207
$
112.50
(14)
2018
April 2023
69,964
$
5.40
(14)
2018
April 2023
121,552
$
5.40
(15)
2018
October 2022
15,466
$
11.25
(16)
2018
July 2023
14,671
$
5.40
(16)
2018
July 2023
14,672
$
5.40
(16)
2018
August 2023
36,334
$
5.40
(16)
2018
August 2023
36,334
$
5.40
(16)
2018
September 2023
19,816
$
5.40
(16)
2018
September 2023
20,903
$
5.40
(17)
2018
November 2023
75,788
$
5.40
(17)
2018
December 2023
51,282
$
5.40
(18)
2019
April 2024
147,472
$
5.40
(19)
2019
May 2024
154,343
$
9.56
909,189
(1)
These warrants were issued in connection with a private placement which was completed in October 2014.
(2)
These warrants were issued in connection with an offering which was completed in February 2015.
(3)
These warrants were issued in connection with an offering which was completed in July 2015.
(4)
These warrants were issued in connection with an offering which was completed in January 2016. Of the remaining outstanding warrants as of June 30, 2019, 357 warrants are recorded as a liability, See Note 9 – Fair Value for further discussion, and 239 are treated as equity.
(5)
These warrants were issued in connection with a June 2017 merger transaction (the “Merger”).
(6)
These warrants were issued in connection with the Merger.
(7)
These warrants were issued in connection with an underwritten public offering completed on August 28, 2017 (the “August 2017 Offering”) and are the August 2017 Offering Warrants discussed below.
(8)
These warrants were issued in connection with the August 2017 Offering.
(9)
These warrants were issued in connection with the conversion of our Series A Senior stock, at the time of the closing of the August 2017 Offering.
(10)
These warrants were issued in connection with the conversion of convertible bridge notes, at the time of the closing of the August 2017 Offering, and are the Note Conversion Warrants discussed below.
(11)
These warrants were issued in connection with the waiver of default the Company received in the fourth quarter of 2017 in connection with the Convertible Promissory Notes and are the Convertible Promissory Note Warrants discussed below.
(12)
These warrants were issued in connection with the Series C Preferred Offering and are the Series C Warrants discussed below.
(13)
These warrants were issued in connection with the Debt Obligation settlement agreements and are the Creditor Warrants discussed below.
(14)
These warrants were issued in connection with the 2018 Note Agreement and are the April 2018 Warrants discussed below.
(15)
These warrants were issued in connection with the 2018 Note Agreement and are the Advisor Warrants discussed below.
(16)
These warrants were issued in connection with the 2018 Note Agreement and are the Q3 2018 Warrants discussed below.
(17)
These warrants were issued in connection with the 2018 Note Agreement and subsequent Amendment Agreement and are the Q4 2018 Warrants discussed below .
(18)
These warrants were issued in connection with the 2018 Note Agreement and subsequent Amendment No. 2 Agreement and are the April 2019 Warrants discussed below .
(19)
These warrants were issued in connection with the May 2019 Bridge Notes and are the May 2019 Warrants discussed below.
August 2017 Offering Warrants
In connection with the August 2017 Offering, the Company issued 178,666 warrants at an exercise price of $45.00, which contain a down round provision (the “August 2017 Offering Warrants”). The August 2017 Offering Warrants were exercisable immediately and expire 5 years from date of issuance.
As a result of the Series C Preferred Offering, the exercise price of the August 2017 Offering Warrants was adjusted to $21.00 per share.
In February 2018, as a result of 2018 Purchase Agreement, the exercise price of the August 2017 Offering Warrants was adjusted to $15.60. At the time the exercise price was adjusted, the Company calculated the fair value of the down round provisions on the warrants to be approximately $62,000 and recorded this as a deemed dividend (“Deemed Dividend E”). In addition, as a result of the 2018 Inducement Agreement, the exercise price of the August 2017 Offering Warrants was further adjusted to $11.25 as a result of the Exercise Price Reduction discussed above.
In April 2018, as a result of the 2018 Note Agreement, the exercise price of the August 2017 Offering Warrants was adjusted to $4.50. At the time the exercise price was adjusted, the Company calculated the fair value of the down round provision on the warrants to be approximately $63,000 and recorded this as a deemed dividend (“Deemed Dividend L”) .
There were 6,800 and 141,400 August 2017 Offering Warrants exercised during the six months ended June 30, 2019 and 2018, respectively, for proceeds to the Company of approximately $15,000 and $771,000, respectively. During the six months ended June 30, 2019 and 2018, the intrinsic value of the August 2017 Offering Warrants exercised was $36,000 and $406,000, respectively.
Note Conversion Warrants
Upon the closing of the August 2017 Offering, the Company issued 23,999 warrants to purchase the Company’s common stock (the “Note Conversion Warrants”). The Note Conversion Warrants have an exercise price of $45.00 per share and contain a down round provision. As a result of the Series C Preferred Offering, the exercise price of the Note Conversion Warrants was adjusted to $21.00 per share.
In February 2018, as a result of 2018 Purchase Agreement, the exercise price of the Note Conversion Warrants was adjusted to $15.60. At the time the exercise price was adjusted, the Company calculated the fair value of the down round provision on the warrants to be approximately $8,000 and recorded this as a deemed dividend (“Deemed Dividend F”). In addition, as a result of the 2018 Inducement Agreement, the exercise price of the Note Conversion Warrants was further adjusted to $11.25. At the time the exercise price was adjusted, the Company calculated the fair value of the down round provision on the warrants to be approximately $5,000 and recorded this as a deemed dividend (“Deemed Dividend G”).
In April 2018, as a result of the 2018 Note Agreement, the exercise price of the Note Conversion Warrants was adjusted to $4.50. At the time the exercise price was adjusted, the Company calculated the fair value of the down round provision on the warrants to be approximately $10,000 and recorded this as a deemed dividend (“Deemed Dividend M”) .
Convertible Promissory Note Warrants
The Convertible Promissory Note Warrants had an original exercise price of $45.00 per share and contain a down round provision. As a result of the Series C Preferred Offering, the exercise price of the Convertible Promissory Note Warrants was adjusted to $21.00 per share.
In February 2018, as a result of 2018 Purchase Agreement, the exercise price of the Convertible Promissory Note Warrants was adjusted to $15.60. At the time the exercise price was adjusted, the Company calculated the fair value of the down round provision on the warrants to be less than $1,000 and recorded this as a deemed dividend (“Deemed Dividend H”). In addition, as a result of the 2018 Inducement Agreement, the exercise price of the Convertible Promissory Note Warrants was further adjusted to $11.25. At the time the exercise price was adjusted, the Company calculated the fair value of the down round provision on the warrants to be less than $1,000 and recorded this as a deemed dividend (“Deemed Dividend I”).
In April 2018, as a result of the 2018 Note Agreement, the exercise price of the Convertible Promissory Note Warrants was adjusted to $4.50. At the time the exercise price was adjusted, the Company calculated the fair value of the down round provision on the warrants to be less than $1,000 and recorded this as a deemed dividend (“Deemed Dividend N”).
Series C Warrants
In connection with the Series C Preferred Offering, the Company issued 130,857 warrants at an exercise price of $24.45, which contain a down round provision. Series C Warrants are exercisable on the six-month anniversary of the date of issuance and expire 5 years from date they are initially exercisable. The terms of the Series C Warrants prohibit a holder from exercising its Series C Warrants if doing so would result in such holder (together with its affiliates) beneficially owning more than 4.99% of the Company’s outstanding shares of common stock after giving effect to such exercise, provided that, at the election of a holder and notice to the Company, such beneficial ownership limitation may be increased to 9.99% of the Company’s outstanding shares of common stock after giving effect to such exercise.
In February 2018, as a result of the 2018 Purchase Agreement, the exercise price of the Series C Warrants was adjusted to $15.60. At the time the exercise price was adjusted, the Company calculated the fair value of the down round provision on the warrants to be approximately $58,000 and recorded this as a deemed dividend (“Deemed Dividend J”). In addition, as a result of the 2018 Inducement Agreement, the exercise price of the Series C Warrants was further adjusted to $11.25 as a result of the Exercise Price Reduction discussed above.
In April 2018, as a result of the 2018 Note Agreement, the exercise price of the Series C Warrants was adjusted to $4.50. At the time the exercise price was adjusted, the Company calculated the fair value of the down round provision on the warrants to be approximately $45,000 and recorded this as a deemed dividend (“Deemed Dividend O”).
There were 25,037 Series C Warrants exercised during both the three and six months ended June 30, 2019 for proceeds to the Company of approximately $56,000. During the six months ended June 30, 2019, the intrinsic value of the Series C Warrants exercised was approximately $43,000. There were 71,333 Series C Warrants exercised during both the three and six months ended June 30, 2018 for proceeds to the Company of approximately $321,000. During the six months ended June 30, 2018, the intrinsic value of the Series C Warrants exercised was approximately $202,000.
Creditor Warrants
In the fourth quarter of 2017, the Company entered into Settlement Agreements with the Creditors pursuant to which the Company agreed to issue, to certain of its Creditors, 7,207 Creditor Warrants to purchase 7,207 shares of the Company’s common stock at an exercise price of $112.50 per share. The Creditor Warrants were issued in February 2018. See Note 4 – Convertible Notes.
April 2018 Warrants
In connection with the issuance of the April 2018 Bridge Notes, the Company issued 243,224 warrants at an exercise price of $11.25 at time of issuance. At issuance, half of these April 2018 Warrants had a five-year term and half had a one-year term. In September 2018, the exercise price was amended to $7.50. At the time of issuance, as discussed in Note 4 - Convertible Notes, the April 2018 Warrants had a fair value of approximately $1.1 million and were recorded as a liability with an offset to debt discount.
In April 2019, as a result of the Amendment No.2 Agreement, the exercise price of the April 2018 Warrants was adjusted to $5.40 and all April 2018 Warrants that had a one-year term were amended to have a five-year term. Due to these modifications, the change in fair value of the April 2018 Warrants was calculated to be an expense of approximately $0.7 million which is included in warrant revaluation and modification in the consolidated statements of operations for the three and six months ended June 30, 2019.
There were 51,708 April 2018 Warrants exercised during the three and six months ended June 30, 2019 for proceeds to the Company of approximately $279,000. During the six months ended June 30, 2019, the intrinsic value of the April 2018 Warrants exercised was approximately $128,000.
Advisor Warrants
At the time of the 2018 Note Agreement, the Company issued 15,466 warrants with an exercise price of $11.25 to a financial advisor. At the time of issuance, as discussed in Note 4 - Convertible Notes, the Advisor Warrants had a fair value of approximately $0.1 million and were recorded as a liability with an offset to debt discount.
Q3 2018 Warrants
In connection with the issuance of bridge notes during the third quarter of 2018, the Company issued 196,340 warrants with an exercise price of $11.25 at time of issuance (the “Q3 2018 Warrants”). At the time of issuance, half of these Q3 2018 Warrants had a five-year term and half had a one-year term. The Q3 2018 Warrants had a fair value of approximately $0.7 million and were recorded as a liability with an offset to debt discount.
In April 2019, as a result of the Amendment No.2 Agreement, the exercise price of the Q3 2018 Warrants was adjusted to $5.40 and all Q3 2018 Warrants that had a one-year term were amended to have a five-year term. Due to these modifications, the change in fair value of the Q3 2018 Warrants was calculated to be an expense of approximately $0.4 million which is inclu

FAIR VALUE

FAIR VALUE6 Months Ended
Jun. 30, 2019
FAIR VALUE [Abstract]
FAIR VALUE9. FAIR VALUE
FASB guidance on fair value measurements, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements for our financial assets and liabilities, as well as for other assets and liabilities that are carried at fair value on a recurring basis in our condensed consolidated financial statements.
FASB guidance establishes a three-level fair value hierarchy based upon the assumptions (inputs) used to price assets or liabilities. The three levels of inputs used to measure fair value are as follows:
Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2—Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets; and
Level 3—Unobservable inputs reflecting our own assumptions and best estimate of what inputs market participants would use in pricing the asset or liability.
Common Stock Warrant Liabilities.
Certain of our issued and outstanding warrants to purchase shares of common stock do not qualify to be treated as equity and, accordingly, are recorded as a liability. We are required to record these instruments at fair value at each reporting date and changes are recorded as a non-cash adjustment to earnings. The gains or losses included in earnings are reported in other income (expense) in our condensed consolidated statement of operations.
2016 Warrant Liability
In the Merger, the Company assumed a warrant liability related to warrants issued in January 2016 (the “2016 Warrant Liability”) and it represents the fair value of such warrants, of which, 357 warrants remain outstanding as of June 30, 2019.
In March 2018, a portion of the 2016 Warrant Liability was part of a settlement agreement pursuant to a lawsuit that was filed against the Company by one of the warrant holders. As such, approximately $0.4 million of the warrant liability, representing 1,347 warrants, was canceled on the date of the settlement agreement and replaced by and amounts now recorded as other current liabilities or other long-term liabilities. For further detail, see discussion of the Crede Agreement in Note 5 – Accrued Expenses And Other Current Liabilities.
The 2016 Warrant Liability is considered a Level 3 financial instrument and was valued using the Monte Carlo methodology. As of June 30, 2019, assumptions and inputs used in the valuation of the 2016 Warrant Liability include: remaining life to maturity of 1.5 years; annual volatility of 141%; and a risk-free interest rate of 1.84%. As of December 31, 2018, assumptions and inputs used in the valuation of the 2016 Warrant Liability include: remaining life to maturity of two years; annual volatility of 176%; and a risk-free interest rate of 2.48%.
Bridge Note Warrant Liabilities
During 2018 and 2019, the Company issued 243,224 of April 2018 Warrants, 15,466 of Advisor Warrants, 196,340 of Q3 2018 Warrants, 300,115 of Q4 2018 Warrants, 147,472 of April 2019 Warrants and 154,343 of May 2019 Warrants. All of these warrants issuances were classified as warrant liabilities (the “Bridge Note Warrant Liabilities”). See Note 4 - Convertible Notes for further discussion of each warrant.
The Bridge Note Warrant Liabilities are considered Level 3 financial instruments and were valued using the Black Scholes model. As of June 30, 2019, assumptions used in the valuation of the Bridge Note Warrant Liabilities include: remaining life to maturity of 2.81 to 4.88 years; annual volatility of 147% to 173%; and risk free rate of 1.71% to 1.76%.
During the three and six months ended June 30, 2019 and 2018, the change in the fair value of the warrant liabilities measured using significant unobservable inputs (Level 3) were comprised of the following:
Dollars in Thousands
Three Months Ended June 30, 2019
2016 Warrant
Bridge Note
Total Warrant
Liability
Warrant Liabilities
Liabilities
Beginning balance at April 1
$
93
$
799
$
892
Additions:

1,858
1,858
Total (gains) losses:
Revaluation recognized in earnings
(7)
829
822
Modification recognized in earnings

1,128
1,128
Deductions – warrant exercises

(2,364)
(2,364)
Balance at June 30
$
86
$
2,250
$
2,336
Three Months Ended June 30, 2018
2016 Warrant
Bridge Note
Total Warrant
Liability
Warrant Liabilities
Liabilities
Beginning balance at April 1
$
124
$

$
124
Additions:

1,205
1,205
Total gains:
Revaluation recognized in earnings

(323)
(323)
Balance at June 30
$
124
$
882
$
1,006
Dollars in Thousands
Six Months Ended June 30, 2019
2016 Warrant
Bridge Note
Total Warrant
Liability
Warrant Liabilities
Liabilities
Beginning balance at January 1
$
116
$
1,016
$
1,132
Additions:

1,858
1,858
Total (gains) losses:
Revaluation recognized in earnings
(30)
612
582
Modification recognized in earnings

1,128
1,128
Deductions – warrant exercises

(2,364)
(2,364)
Balance at June 30
$
86
$
2,250
$
2,336
Six Months Ended June 30, 2018
2016 Warrant
Bridge Note
Total Warrant
Liability
Warrant Liabilities
Liabilities
Beginning balance at January 1
$
841
$

$
841
Additions:

1,205
1,205
Total gains:
Revaluation recognized in earnings
(261)
(323)
(584)
Deductions – warrant liability settlement
(456)

(456)
Balance at June 30
$
124
$
882
$
1,006
Derivative Liabilities.
Certain of our issued and outstanding convertible notes contain features that are considered derivative instruments and are required to bifurcated from the debt host and accounted for separately as derivative liabilities. The estimated fair value of the derivatives will be remeasured at each reporting date and any change in estimated fair value of the derivatives will be recorded as non-cash adjustments to earnings. The gains or losses included in earnings are reported in other income (expense) in our condensed consolidated statement of operations.
Bridge Notes Redemption Feature
At the time of the Bridge Note issuances, the Company recorded derivative instruments as liabilities with an initial fair value of approximately $0.3 million. The valuations were performed using the “with and without” approach, whereby the Bridge Notes were valued both with the embedded derivative and without, and the difference in values was recorded as the derivative liability. See Note 4 - Convertible Notes for further discussion.
Conversion Option
The Company recorded derivative liabilities related to the Conversion Option of the Exchange Notes issued during 2018 with an initial fair value of approximately $0.4 million. The valuations were performed using the Monte Carlo methodology. See Note 4 - Convertible Notes for further discussion.
During the three and six months ended June 30, 2019 and 2018, the change in the fair value of the derivative liabilities measured using significant unobservable inputs (Level 3) was comprised of the following:
(Dollars in thousands)
Three Months Ended June 30, 2019
Bridge Notes
Redemption
Conversion
Total Derivative
Feature
Option
Liabilities
Beginning balance at April 1
$

$

$

Deductions:
(438)

(438)
Total loss:
Revaluation recognized in earnings
438

438
Balance at June 30
$

$

$

Three Months Ended June 30, 2018
Bridge Notes
Redemption
Conversion
Total Derivative
Feature
Option
Liabilities
Beginning balance at April 1
$

$

$

Additions:
142

142
Total loss:
Revaluation recognized in earnings
1

1
Balance at June 30
$
143
$

$
143
Six Months Ended June 30, 2019
Bridge Notes
Redemption
Conversion
Total Derivative
Feature
Option
Liabilities
Beginning balance at January 1
$
30
$
32
$
62
Deductions:
(438)
(39)
(477)
Total loss:
Revaluation recognized in earnings
408
7
415
Balance at June 30
$

$

$

Six Months Ended June 30, 2018
Bridge Notes
Redemption
Conversion
Total Derivative
Feature
Option
Liabilities
Beginning balance at January 1
$

$

$

Additions:
142

142
Total loss:
Revaluation recognized in earnings
1

1
Balance at June 30
$
143
$

$
143

EQUITY INCENTIVE PLAN

EQUITY INCENTIVE PLAN6 Months Ended
Jun. 30, 2019
EQUITY INCENTIVE PLAN [Abstract]
EQUITY INCENTIVE PLAN10. EQUITY INCENTIVE PLAN
The Company's 2006 Equity Incentive Plan (the "2006 Plan") was terminated as to future awards on July 12, 2016. The Company's 2017 Stock Option and Incentive Plan (the "2017 Plan") was adopted by the Company's stockholders on June 5, 2017 and there were 44,444 shares of common stock reserved for issuance under the 2017 Plan. The 2017 Plan will expire on June 5, 2027.
Amendment of the 2017 Stock Option and Incentive Plan
On January 31, 2018, at a special meeting of the stockholders of the Company, the stockholders approved an amendment and restatement of the 2017 Plan to:
·
increase the aggregate number of shares authorized for issuance under the 2017 Plan by 359,300 shares to 403,744 shares;
·
increase the maximum number of shares that may be granted in the form of stock options or stock appreciation rights to any one individual in any one calendar year and the maximum number of shares underlying any award intended to qualify as performance-based compensation to any one individual in any performance cycle, in each case to 66,666 shares of common stock; and
·
add an “evergreen” provision, pursuant to which the aggregate number of shares authorized for issuance under the 2017 Plan will be automatically increased each year beginning on January 1, 2019 by 5% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or such lesser number of shares determined by the Company’s Board of Directors or Compensation Committee.
Stock Options.
The Company accounts for all stock-based compensation payments to employees and directors, including grants of employee stock options, at fair value and expenses the benefit in operating expense in the condensed consolidated statements of operations over the service period of the awards. The Company records the expense for stock-based compensation awards subject to performance-based milestone vesting over the remaining service period when management determines that achievement of the milestone is probable. Management evaluates when the achievement of a performance-based milestone is probable based on the expected satisfaction of the performance conditions as of the reporting date. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option pricing model, which requires various assumptions including estimating stock price volatility, expected life of the stock option, risk free interest rate and estimated forfeiture rate.
During the six months ended June 30, 2019, the Company granted stock options to purchase up to 285,364 shares of common stock at a weighted average exercise price of $2.37. 100,000 of the stock options granted during the six months ended June 30, 2019 were awards subject to performance-based milestone vesting.
The following table summarizes stock option activity under our plans during the six months ended June 30, 2019:
Number of
Weighted-Average
Options
Exercise Price
Outstanding at January 1, 2019
224,895
$
15.90
Granted
285,364
2.37
Forfeited
(9,017)
6.92
Outstanding at June 30, 2019
501,242
$
8.29
Exercisable at June 30, 2019
99,047
$
20.22
As of June 30, 2019, there were 400,693 options that were vested or expected to vest with an aggregate intrinsic value of approximately $0.2 million and a remaining weighted average contractual life of 9.2 years.
During the six months ended June 30, 2018, there were 219,101 options granted with a weighted average exercise price of $10.65 and 7,530 options forfeited with a weighted average exercise price of $42.60.
For the three and six months ended June 30, 2019, we recorded compensation expense for all stock awards of $0.1 million and $0.3 million, respectively, within operating expense in the accompanying statements of operations. For the three and six months ended June 30, 2018, we recorded compensation expense for all stock awards of $0.1 million and $0.2 million, respectively. As of June 30, 2019, the unrecognized compensation expense related to unvested stock awards was $2.2 million, which is expected to be recognized over a weighted-average period of 2.5 years.

SALES SERVICE REVENUE, NET AND

SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE6 Months Ended
Jun. 30, 2019
SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE [Abstract]
SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE11. SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE
ASC Topic 606, “Revenue from contracts with customers”
The Company follows the guidance of ASC 606 for the recognition of revenue from contracts with customers to transfer goods and services. The Company performed a comprehensive review of its existing revenue arrangements following the five-step model:
Step 1: Identification of the contract with the customer. Sub-steps include determining the customer in a contract; Initial contract identification and determine if multiple contracts should be combined and accounted for as a single transaction.
Step 2: Identify the performance obligation in the contract. Sub-steps include identifying the promised goods and services in the contract and identifying which performance obligations within the contract are distinct.
Step 3: Determine the transaction price. Sub-steps include variable consideration, constraining estimates of variable consideration, the existence of a significant financing component in the contract, noncash consideration and consideration payable to a customer.
Step 4: Allocate transaction price. Sub-steps include assessing the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods or services to the customer.
Step 5: Satisfaction of performance obligations. Sub-steps include ascertaining the point in time when an asset is transferred to the customer and the customer obtains control of the asset upon which time the Company recognizes revenue.
Nature of Contracts and Customers
The Company’s contracts and related performance obligations are similar for its customers and the sales process for all customers starts upon the receipt of requisition forms from the customers for patient diagnostic testing and the execution of contracts for biomarker testing and clinical research. Payment terms for the services provided are 30 days, unless separately negotiated.
Diagnostic testing
Control of the laboratory testing services is transferred to the customer at a point in time. As such, the Company recognizes revenue for laboratory testing services at a point in time based on the delivery method (web-portal access or fax) for the patient’s laboratory report, per the contract.
Clinical research grants
Control of the clinical research services are transferred to the customer over time. The Company will recognize revenue utilizing the “effort based” method, measuring its progress toward complete satisfaction of the performance obligation.
Biomarker testing and clinical project services
Control of the biomarker testing and clinical project services are transferred to the customer over time. The Company utilizes an “effort based” method of assessing performance and measures progress towards satisfaction of the performance obligation based upon the delivery of results.
The Company generates revenue from the provision of diagnostic testing provided to patients, biomarker testing provided to bio-pharma customers and clinical research grants funded by both bio-pharma customers and government health programs.
Disaggregation of Revenues by Transaction Type
We operate in one business segment and, therefore, the results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. Service revenue, net for the three and six months ended June 30, 2019 and 2018 were as follows (prior-period amounts are not adjusted under the modified-retrospective method of adoption):
For the Three Months Ended June 30,
(dollars in thousands)
Diagnostic Testing
Biomarker Testing
Total
2019
2018
2019
2018
2019
2018
Medicaid
$
9
$
11
$

$

$
9
$
11
Medicare
450
281


450
281
Self-pay
11
20


11
20
Third party payers
451
219


451
219
Contract diagnostics


274
368
274
368
Service revenue, net
$
921
$
531
$
274
$
368
$
1,195
$
899
For the Six Months Ended June 30,
(dollars in thousands)
Diagnostic Testing
Biomarker Testing
Total
2019
2018
2019
2018
2019
2018
Medicaid
$
12
$
23
$

$

$
12
$
23
Medicare
844
415


844
415
Self-pay
15
46


15
46
Third party payers
807
350


807
350
Contract diagnostics


427
856
427
856
Service revenue, net
$
1,678
$
834
$
427
$
856
$
2,105
$
1,690
Revenue from the Medicare and Medicaid programs account for a portion of the Company’s patient diagnostic service revenue. Laws and regulations governing those programs are extremely complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded estimates will change by a material amount in the near term.
Revenue Recognition
Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price using the expected value method based on historical experience. The Company does not typically enter arrangements where multiple contracts can be combined as the terms regarding services are generally found within a single agreement/requisition form. The Company derives its revenues from three types of transactions: diagnostic testing (“Diagnostic”), and clinical research grants from state and federal research programs, and other revenues from the Company’s ICP technology and bio-pharma projects encompassing genetic diagnostics (collectively “Biomarker”).
Deferred revenue
Deferred revenue, or unearned revenue, refers to advance payments for products or services that are to be delivered in the future. The Company records such prepayment of unearned revenue as a liability, as revenue that has not yet been earned, but represents products or services that are owed to a customer. As the product or service is delivered over time, the Company recognizes the appropriate amount of revenue from deferred revenue. For the period ended June 30, 2019 and December 31, 2018, the deferred revenue was $19,000 and $49,000, respectively.
Contractual Allowances and Adjustments
We are reimbursed by payers for services we provide. Payments for services covered by payers average less than billed charges. We monitor revenue and receivables from payers and record an estimated contractual allowance for certain revenue and receivable balances as of the revenue recognition date to properly account for anticipated differences between amounts estimated in our billing system and amounts ultimately reimbursed by payers. Accordingly, the total revenue and receivables reported in our condensed consolidated financial statements are recorded at the amounts expected to be received from these payers. For service revenue, the contractual allowance is estimated based on several criteria, including unbilled claims, historical trends based on actual claims paid, current contract and reimbursement terms and changes in customer base and payer/product mix. The billing functions for the remaining portion of our revenue are contracted and fixed fees for specific services and are recorded without an allowance for contractual discounts. The following table presents our revenues initially recognized for each associated payer class during the three and six months ended June 30, 2019 and 2018.
For the Three Months Ended June 30,
(dollars in thousands)
Contractual Allowances and
Revenues, net of Contractual
Gross Revenues
adjustments
Allowances and adjustments
2019
2018
2019
2018
2019
2018
Medicaid
$
12
$
26
$
(3)
$
(15)
$
9
$
11
Medicare
467
292
(17)
(11)
450
281
Self-pay
11
20


11
20
Third party payers
1,571
531
(1,120)
(312)
451
219
Contract diagnostics
274
368


274
368
2,335
1,237
(1,140)
(338)
1,195
899
Clinical research grants and other
4
60


4
60
$
2,339
$
1,297
$
(1,140)
$
(338)
$
1,199
$
959
(dollars in thousands)
For the Six Months Ended June 30,
Contractual Allowances and
Revenues, net of Contractual
Gross Revenues
adjustments
Allowances and adjustments
2019
2018
2019
2018
2019
2018
Medicaid
$
15
$
41
$
(3)
$
(18)
$
12
$
23
Medicare
861
429
(17)
(14)
844
415
Self-pay
15
46


15
46
Third party payers
2,588
848
(1,781)
(498)
807
350
Contract diagnostics
427
856


427
856
3,906
2,220
(1,801)
(530)
2,105
1,690
Clinical research grants and other
11
65


11
65
$
3,917
$
2,285
$
(1,801)
$
(530)
$
2,116
$
1,755
Allowance for Doubtful Accounts
The Company provides for a general allowance for collectability of services when recording net sales. The Company has adopted the policy of recognizing net sales to the extent it expects to collect that amount. Reference FASB 954‑605‑45‑5 and ASU 2011‑07, Health Care Entities: Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debt, and the Allowance for Doubtful Accounts. The change in the allowance for doubtful accounts is directly related to the increase in patient service revenues. The following table presents our reported revenues net of the collection allowance and adjustments for the three and six months ended June 30, 2019 and 2018.
For the Three Months Ended June 30,
Revenues, net of
(dollars in thousands)
Contractual Allowances
Allowances for doubtful
and adjustments
accounts
Total
2019
2018
2019
2018
2019
2018
Medicaid
$
9
$
11
$
(9)
$
(12)
$

$
(1)
Medicare
450
281
(68)
(42)
382
239
Self-pay
11
20


11
20
Third party payers
451
219
(180)
(88)
271
131
Contract diagnostics
274
368


274
368
1,195
899
(257)
(142)
938
757
Clinical research grants and other
4
60


4
60
$
1,199
$
959
$
(257)
$
(142)
$
942
$
817
For the Six Months Ended June 30,
Revenues, net of
(dollars in thousands)
Contractual Allowances
Allowances for doubtful
and adjustments
accounts
Total
2019
2018
2019
2018
2019
2018
Medicaid
$
12
$
23
$
(12)
$
(23)
$

$

Medicare
844
415
(127)
(62)
717
353
Self-pay
15
46


15
46
Third party payers
807
350
(322)
(141)
485
209
Contract diagnostics
427
856


427
856
2,105
1,690
(461)
(226)
1,644
1,464
Clinical research grants and other
11
65


11
65
$
2,116
$
1,755
$
(461)
$
(226)
$
1,655
$
1,529
Costs to Obtain or Fulfill a Customer Contract
Sales commissions are expensed when incurred because the amortization period would have been one year or less. These costs are recorded in operating expenses in the condensed consolidated statements of operations.
Shipping and handling costs are comprised of inbound and outbound freight and associated labor. The Company accounts for shipping and handling activities related to contracts with customers as fulfillment costs which are included in cost of sales in the condensed consolidated statements of operations.
Accounts Receivable
The Company has provided an allowance for potential credit losses, which has been determined based on management’s industry experience. The Company grants credit without collateral to its patients, most of who are insured under third party payer agreements.
The following summarizes the mix of receivables:
(dollars in thousands)
June 30, 2019
December 31, 2018
Medicaid
$
90
$
82
Medicare
770
633
Self-pay
73
108
Third party payers
1,852
1,382
Contract diagnostic services
269
193
Other


$
3,054
$
2,398
Less allowance for doubtful accounts
(2,171)
(1,708)
Accounts receivable, net
$
883
$
690
The following table presents the roll-forward of the allowance for doubtful accounts for the six months ended June 30, 2019.
Allowance for
Doubtful
(dollars in thousands)
Accounts
Balance, January 1, 2019
$
(1,708)
Collection Allowance:
Medicaid
$
(12)
Medicare
(127)
Third party payers
(322)
(461)
Bad debt expense
$
(2)
Total charges
(463)
Balance, June 30, 2019
$
(2,171)
Customer Revenue and Accounts Receivable Concentration
Customer revenue and accounts receivable concentration amounted to the following for the identified periods.
Three Months Ended
Six Months Ended
June 30,
June 30,
2019
2018
2019
2018
Percentage of net sales by customer:
Customer A
%
%
%
%
Customer B
%
*
*
*
* represents less than 10%
June 30,
December 31,
2019
2018
Percentage of total accounts receivable by customer:
Customer A
%
%
Customer B
*
*
* represents less than 10%

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS6 Months Ended
Jun. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS12. SUBSEQUENT EVENTS
The Company has evaluated events and transactions subsequent to June 30, 2019 through the date the condensed consolidated financial statements were issued and there are no other events to report other than what has been disclosed in the condensed consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)6 Months Ended
Jun. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of PresentationBasis of Presentation.
The accompanying condensed consolidated financial statements are presented in conformity with GAAP. As required under GAAP, pursuant to the Reverse Stock Split , unless otherwise indicated, the Company has adjusted all share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying condensed consolidated financial statements.
The condensed consolidated balance sheet as of December 31, 2018 was derived from our audited balance sheet as of that date. There has been no change in the balance sheet from December 31, 2018, except for the retroactive adjustment to reflect the Reverse Stock Split. The accompanying condensed consolidated financial statements as of and for the six months ended June 30, 2019 and 2018 are unaudited and reflect all adjustments (consisting of only normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2018 contained in our Annual Report Form 10‑K, filed with the Securities and Exchange Commission (the “SEC”) on April 16, 2019. The results of operations for the interim periods presented are not necessarily indicative of the results for fiscal year 2019.
Recent Accounting PronouncementsRecently Adopted Accounting Pronouncements.
In February 2016, the FASB issued ASU No. 2016‑02, Leases-Topic 842 . The new standard amends the recognition of lease assets and lease liabilities by lessees for those leases currently classified as operating leases and amends disclosure requirements associated with leasing arrangements. The new standard was adopted effective January 1, 2019, using a modified retrospective transition, and thus did not adjust comparative periods. The new standard provides a number of optional practical expedients in transition. The Company has elected the “package of practical expedients”, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight practical expedient. As a result of the adoption of Topic 842 the Company recognized approximately $0.7 million of lease liabilities and corresponding right-of-use (“ROU”) assets in its condensed consolidated balance sheet on the date of initial application. See Note 7 – Leases for additional information.
In June 2018, the FASB issued ASU 2018-07 “ Compensation—Stock Compensation (Topic 718) ”, which expands the scope of Topic 718 to include share based payment transactions for acquiring goods and services from non-employees. The Company adopted this guidance on January 1, 2019. The adoption of this guidance was not material to our condensed consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted
In August 2018, the FASB issued ASU 2018-13 “ Fair Value Measurement (Topic 820) ”, which modifies certain disclosure requirements in Topic 820, such as the removal of the need to disclose the amount of and reason for transfers between Level 1 and Level 2 of the fair value hierarchy, and several changes related to Level 3 fair value measurements. This ASU is effective for reporting periods beginning after December 15, 2019. We are currently assessing the potential impact that the adoption of this ASU will have on our condensed consolidated financial statements.
In August 2018, the FASB issued ASU 2018-15 “ Intangibles—Goodwill and Other—Internal Use Software (Subtopic 350-40) ”, which aligns the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. This ASU is effective for reporting periods beginning after December 15, 2019. We are currently assessing the potential impact that the adoption of this ASU will have on our condensed consolidated financial statements.
In June 2016, the FASB issued ASU 2016-13 “ Measurement of Credit Losses on Financial Instruments ”, which replaces current methods for evaluating impairment of financial instruments not measured at fair value, including trade accounts receivable and certain debt securities, with a current expected credit loss model. This ASU is effective for reporting periods beginning after December 15, 2019. We are currently assessing the potential impact that the adoption of this ASU will have on our condensed consolidated financial statements.
Loss Per ShareLoss Per Share.
Basic loss per share is calculated based on the weighted-average number of common shares outstanding during each period. Diluted loss per share includes shares issuable upon exercise of outstanding stock options, warrants or conversion rights that have exercise or conversion prices below the market value of our common stock. Options, warrants and conversion rights pertaining to 1,760,336 and 941,882 shares of our common stock have been excluded from the computation of diluted loss per share at June 30, 2019 and 2018, respectively, because the effect is anti-dilutive due to the net loss.
The following table summarizes the outstanding securities not included in the computation of diluted net loss per share:
June 30,
2019
2018
Stock options
501,242
227,337
Warrants
909,189
460,876
Preferred stock
20,888
10,445
Convertible notes
329,017
243,224
Total
1,760,336
941,882

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)6 Months Ended
Jun. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Outstanding Securities not Included in the Computation of Diluted Net LossThe following table summarizes the outstanding securities not included in the computation of diluted net loss per share:
June 30,
2019
2018
Stock options
501,242
227,337
Warrants
909,189
460,876
Preferred stock
20,888
10,445
Convertible notes
329,017
243,224
Total
1,760,336
941,882

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)6 Months Ended
Jun. 30, 2019
LONG-TERM DEBT [Abstract]
Schedule of debtDollars in Thousands
June 30, 2019
December 31, 2018
Department of Economic and Community Development (DECD)
$
263
$
274
DECD debt issuance costs
(26)
(28)
Financed insurance loan
32
204
September 2018 Settlement
57
66
Total long-term debt
326
516
Current portion of long-term debt
(103)
(263)
Long-term debt, net of current maturities
$
223
$
253

CONVERTIBLE NOTES (Tables)

CONVERTIBLE NOTES (Tables)6 Months Ended
Jun. 30, 2019
Debt Instrument [Line Items]
Schedule of debtDollars in Thousands
June 30, 2019
December 31, 2018
Department of Economic and Community Development (DECD)
$
263
$
274
DECD debt issuance costs
(26)
(28)
Financed insurance loan
32
204
September 2018 Settlement
57
66
Total long-term debt
326
516
Current portion of long-term debt
(103)
(263)
Long-term debt, net of current maturities
$
223
$
253
Convertible Bridge Loan
Debt Instrument [Line Items]
Summary of change in Bridge Note debt discounts and debt premiums(Dollars in thousands)
For the Three Months Ended June 30,
2019
2018
Debt Discounts
Debt Premiums
Debt Discounts
Debt Premiums
Beginning balance at April 1
$
(1,053)
$
91
$

$

Additions:
(2,086)

(1,824)

Deductions:
Amortization (accretion) (1)
55
(7)
9

Write-off related to note conversions (2)
926
(84)


Balance at June 30
$
(2,158)
$

$
(1,815)
$

For the Six Months Ended June 30,
2019
2018
Debt Discounts
Debt Premiums
Debt Discounts
Debt Premiums
Beginning balance at January 1
$
(1,111)
$
647
$

$

Additions:
(2,086)

(1,824)

Deductions:
Amortization (accretion) (1)
113
(167)
9

Write-off related to note conversions (2)
926
(480)


Balance at June 30
$
(2,158)
$

$
(1,815)
$

(1)
Amortization/accretion is recognized as interest expense/income within the condensed consolidated statements of operations based on the effective interest method.
(2)
Write-offs associated with note conversions are recognized as an offset to additional paid-in capital at the time of the conversion.
Convertible promissory notes - Exchange Notes
Debt Instrument [Line Items]
Summary of change in Bridge Note debt discounts and debt premiums(Dollars in thousands)
2019
Beginning balance at January 1
$
(83)
Deductions:
Amortization (1)
2
Write-off related to note conversions (2)
81
Balance at June 30
$

(1)
Amortization is recognized as interest expense within the condensed consolidated statements of operations based on the effective interest method.
(2)
Write-offs associated with note conversions are recognized as an offset to additional paid-in capital at the time of the conversion.
Convertible Debt [Member]
Debt Instrument [Line Items]
Schedule of debtDollars in Thousands
June 30, 2019
December 31, 2018
Convertible bridge notes
$
2,197
$
4,294
Convertible bridge notes discount and debt issuance costs
(2,158)
(1,111)
Convertible bridge notes premiums

647
Convertible promissory notes - Exchange Notes

630
Convertible promissory notes - Exchange notes debt issuance costs

(83)
Total convertible notes
39
4,377
Current portion of convertible notes
(39)
(4,377)
Convertible notes, net of current maturities
$

$

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)6 Months Ended
Jun. 30, 2019
Payables and Accruals [Abstract]
Accrued expenses(dollars in thousands)
June 30, 2019
December 31, 2018
Accrued expenses
$
1,325
$
1,583
Accrued compensation
277
118
Accrued interest
53
239
$
1,655
$
1,940
Other current liabilities(dollars in thousands)
June 30, 2019
December 31, 2018
Liability related to equity purchase agreement

460
Liability for settlement of equity instrument

1,450
$

$
1,910

LEASES (Tables)

LEASES (Tables)6 Months Ended
Jun. 30, 2019
Leases [Abstract]
Summary of balance sheet presentation of our operating and finance leases(dollars in thousands)
Classification on the Condensed Consolidated Balance Sheet
June 30, 2019
Assets:
Operating lease assets
Operating lease right-of-use assets
$
627
Finance lease assets
Property and equipment, net
193
Total lease assets
$
820
Liabilities:
Current:
Operating lease obligations
Current maturities of operating lease liabilities
$
212
Finance lease obligations
Current maturities of finance lease liabilities
51
Noncurrent:
Operating lease obligations
Operating lease liabilities, less current maturities
421
Finance lease obligations
Finance lease liabilities, less current maturities
133
Total lease liabilities
$
817
Summary of estimated future minimum lease payments for finance leasesAs of June 30, 2019, the estimated future minimum lease payments, excluding non-lease components, are as follows:
(dollars in thousands)
Operating Leases
Finance Leases
Total
Remainder of 2019
$
129
$
35
$
164
2020
242
46
288
2021
241
38
279
2022
48
32
80
2023
35
27
62
Thereafter
17
41
58
Total lease obligations
712
219
931
Less: Amount representing interest
(79)
(35)
(114)
Present value of net minimum lease obligations
633
184
817
Less, current portion
(212)
(51)
(263)
Long term portion
$
421
$
133
$
554
Schedule of other informationWeighted-average remaining lease term (years):
Operating leases
3.0
Finance leases
4.8
Weighted-average discount rate:
Operating leases
Finance leases

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)6 Months Ended
Jun. 30, 2019
Stockholders' Equity Note [Abstract]
Schedule of stockholders' equity, including warrants and rightsThe following represents a summary of the warrants outstanding as of June 30, 2019:
Underlying
Exercise
Issue Year
Expiration
Shares
Price
Warrants Assumed in Merger
(1)
2014
April 2020
832
$
1,800.00
(2)
2015
February 2020
1,588
$
1,008.00
(3)
2015
December 2020
272
$
747.00
(4)
2016
January 2021
596
$
544.50
Warrants
(5)
2017
June 2022
2,540
$
41.25
(5)
2017
June 2022
500
$
7.50
(6)
2017
June 2022
6,095
$
105.00
(7)
2017
August 2022
25,201
$
2.25
(8)
2017
August 2022
4,000
$
46.88
(9)
2017
August 2022
47,995
$
150.00
(9)
2017
August 2022
9,101
$
7.50
(10)
2017
August 2022
16,664
$
2.25
(10)
2017
August 2022
7,335
$
2.25
(11)
2017
October 2022
666
$
2.25
(12)
2017
May 2023

$
2.25
(13)
2018
October 2022
7,207
$
112.50
(14)
2018
April 2023
69,964
$
5.40
(14)
2018
April 2023
121,552
$
5.40
(15)
2018
October 2022
15,466
$
11.25
(16)
2018
July 2023
14,671
$
5.40
(16)
2018
July 2023
14,672
$
5.40
(16)
2018
August 2023
36,334
$
5.40
(16)
2018
August 2023
36,334
$
5.40
(16)
2018
September 2023
19,816
$
5.40
(16)
2018
September 2023
20,903
$
5.40
(17)
2018
November 2023
75,788
$
5.40
(17)
2018
December 2023
51,282
$
5.40
(18)
2019
April 2024
147,472
$
5.40
(19)
2019
May 2024
154,343
$
9.56
909,189
(1)
These warrants were issued in connection with a private placement which was completed in October 2014.
(2)
These warrants were issued in connection with an offering which was completed in February 2015.
(3)
These warrants were issued in connection with an offering which was completed in July 2015.
(4)
These warrants were issued in connection with an offering which was completed in January 2016. Of the remaining outstanding warrants as of June 30, 2019, 357 warrants are recorded as a liability, See Note 9 – Fair Value for further discussion, and 239 are treated as equity.
(5)
These warrants were issued in connection with a June 2017 merger transaction (the “Merger”).
(6)
These warrants were issued in connection with the Merger.
(7)
These warrants were issued in connection with an underwritten public offering completed on August 28, 2017 (the “August 2017 Offering”) and are the August 2017 Offering Warrants discussed below.
(8)
These warrants were issued in connection with the August 2017 Offering.
(9)
These warrants were issued in connection with the conversion of our Series A Senior stock, at the time of the closing of the August 2017 Offering.
(10)
These warrants were issued in connection with the conversion of convertible bridge notes, at the time of the closing of the August 2017 Offering, and are the Note Conversion Warrants discussed below.
(11)
These warrants were issued in connection with the waiver of default the Company received in the fourth quarter of 2017 in connection with the Convertible Promissory Notes and are the Convertible Promissory Note Warrants discussed below.
(12)
These warrants were issued in connection with the Series C Preferred Offering and are the Series C Warrants discussed below.
(13)
These warrants were issued in connection with the Debt Obligation settlement agreements and are the Creditor Warrants discussed below.
(14)
These warrants were issued in connection with the 2018 Note Agreement and are the April 2018 Warrants discussed below.
(15)
These warrants were issued in connection with the 2018 Note Agreement and are the Advisor Warrants discussed below.
(16)
These warrants were issued in connection with the 2018 Note Agreement and are the Q3 2018 Warrants discussed below.
(17)
These warrants were issued in connection with the 2018 Note Agreement and subsequent Amendment Agreement and are the Q4 2018 Warrants discussed below .
(18)
These warrants were issued in connection with the 2018 Note Agreement and subsequent Amendment No. 2 Agreement and are the April 2019 Warrants discussed below .
(19)
These warrants were issued in connection with the May 2019 Bridge Notes and are the May 2019 Warrants discussed below.
Summary of dividends recordedThe following represents a summary of the dividends recorded for the six months ended June 30, 2018:
Amount Recorded
Deemed Dividends
(in thousands)
Dividends resulting from the 2018 Purchase Agreement
Deemed Dividend A
$
1,358
Deemed Dividend C
829
Deemed Dividend E
62
Deemed Dividend F
8
Deemed Dividend H
*
Deemed Dividend J
58
Dividends resulting from the 2018 Inducement Agreement
Deemed Dividend B
40
Deemed Dividend D
1,154
Deemed Dividend G
5
Deemed Dividend I
*
Dividends resulting from the 2018 Note Agreement
Deemed Dividend K
216
Deemed Dividend L
63
Deemed Dividend O
45
Deemed Dividend M
10
Deemed Dividend N
*
For the six months ended June 30, 2018
$
3,848
* Represents less than one thousand dollars

FAIR VALUE (Tables)

FAIR VALUE (Tables)6 Months Ended
Jun. 30, 2019
FAIR VALUE [Abstract]
Schedule of Changes in Fair Value of LiabilityDollars in Thousands
Three Months Ended June 30, 2019
2016 Warrant
Bridge Note
Total Warrant
Liability
Warrant Liabilities
Liabilities
Beginning balance at April 1
$
93
$
799
$
892
Additions:

1,858
1,858
Total (gains) losses:
Revaluation recognized in earnings
(7)
829
822
Modification recognized in earnings

1,128
1,128
Deductions – warrant exercises

(2,364)
(2,364)
Balance at June 30
$
86
$
2,250
$
2,336
Three Months Ended June 30, 2018
2016 Warrant
Bridge Note
Total Warrant
Liability
Warrant Liabilities
Liabilities
Beginning balance at April 1
$
124
$

$
124
Additions:

1,205
1,205
Total gains:
Revaluation recognized in earnings

(323)
(323)
Balance at June 30
$
124
$
882
$
1,006
Dollars in Thousands
Six Months Ended June 30, 2019
2016 Warrant
Bridge Note
Total Warrant
Liability
Warrant Liabilities
Liabilities
Beginning balance at January 1
$
116
$
1,016
$
1,132
Additions:

1,858
1,858
Total (gains) losses:
Revaluation recognized in earnings
(30)
612
582
Modification recognized in earnings

1,128
1,128
Deductions – warrant exercises

(2,364)
(2,364)
Balance at June 30
$
86
$
2,250
$
2,336
Six Months Ended June 30, 2018
2016 Warrant
Bridge Note
Total Warrant
Liability
Warrant Liabilities
Liabilities
Beginning balance at January 1
$
841
$

$
841
Additions:

1,205
1,205
Total gains:
Revaluation recognized in earnings
(261)
(323)
(584)
Deductions – warrant liability settlement
(456)

(456)
Balance at June 30
$
124
$
882
$
1,006
Schedule of Change in the Fair Value of the Derivative Liabilities(Dollars in thousands)
Three Months Ended June 30, 2019
Bridge Notes
Redemption
Conversion
Total Derivative
Feature
Option
Liabilities
Beginning balance at April 1
$

$

$

Deductions:
(438)

(438)
Total loss:
Revaluation recognized in earnings
438

438
Balance at June 30
$

$

$

Three Months Ended June 30, 2018
Bridge Notes
Redemption
Conversion
Total Derivative
Feature
Option
Liabilities
Beginning balance at April 1
$

$

$

Additions:
142

142
Total loss:
Revaluation recognized in earnings
1

1
Balance at June 30
$
143
$

$
143
Six Months Ended June 30, 2019
Bridge Notes
Redemption
Conversion
Total Derivative
Feature
Option
Liabilities
Beginning balance at January 1
$
30
$
32
$
62
Deductions:
(438)
(39)
(477)
Total loss:
Revaluation recognized in earnings
408
7
415
Balance at June 30
$

$

$

Six Months Ended June 30, 2018
Bridge Notes
Redemption
Conversion
Total Derivative
Feature
Option
Liabilities
Beginning balance at January 1
$

$

$

Additions:
142

142
Total loss:
Revaluation recognized in earnings
1

1
Balance at June 30
$
143
$

$
143

EQUITY INCENTIVE PLAN (Tables)

EQUITY INCENTIVE PLAN (Tables)6 Months Ended
Jun. 30, 2019
EQUITY INCENTIVE PLAN [Abstract]
Summary of stock option activityNumber of
Weighted-Average
Options
Exercise Price
Outstanding at January 1, 2019
224,895
$
15.90
Granted
285,364
2.37
Forfeited
(9,017)
6.92
Outstanding at June 30, 2019
501,242
$
8.29
Exercisable at June 30, 2019
99,047
$
20.22

SALES SERVICE REVENUE, NET AN_2

SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE (Tables)6 Months Ended
Jun. 30, 2019
SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE [Abstract]
Schedule of Net RevenuesFor the Three Months Ended June 30,
(dollars in thousands)
Diagnostic Testing
Biomarker Testing
Total
2019
2018
2019
2018
2019
2018
Medicaid
$
9
$
11
$

$

$
9
$
11
Medicare
450
281


450
281
Self-pay
11
20


11
20
Third party payers
451
219


451
219
Contract diagnostics


274
368
274
368
Service revenue, net
$
921
$
531
$
274
$
368
$
1,195
$
899
For the Six Months Ended June 30,
(dollars in thousands)
Diagnostic Testing
Biomarker Testing
Total
2019
2018
2019
2018
2019
2018
Medicaid
$
12
$
23
$

$

$
12
$
23
Medicare
844
415


844
415
Self-pay
15
46


15
46
Third party payers
807
350


807
350
Contract diagnostics


427
856
427
856
Service revenue, net
$
1,678
$
834
$
427
$
856
$
2,105
$
1,690
Schedule of Gross to Net Sales AdjustmentsThe following table presents our revenues initially recognized for each associated payer class during the three and six months ended June 30, 2019 and 2018.
For the Three Months Ended June 30,
(dollars in thousands)
Contractual Allowances and
Revenues, net of Contractual
Gross Revenues
adjustments
Allowances and adjustments
2019
2018
2019
2018
2019
2018
Medicaid
$
12
$
26
$
(3)
$
(15)
$
9
$
11
Medicare
467
292
(17)
(11)
450
281
Self-pay
11
20


11
20
Third party payers
1,571
531
(1,120)
(312)
451
219
Contract diagnostics
274
368


274
368
2,335
1,237
(1,140)
(338)
1,195
899
Clinical research grants and other
4
60


4
60
$
2,339
$
1,297
$
(1,140)
$
(338)
$
1,199
$
959
(dollars in thousands)
For the Six Months Ended June 30,
Contractual Allowances and
Revenues, net of Contractual
Gross Revenues
adjustments
Allowances and adjustments
2019
2018
2019
2018
2019
2018
Medicaid
$
15
$
41
$
(3)
$
(18)
$
12
$
23
Medicare
861
429
(17)
(14)
844
415
Self-pay
15
46


15
46
Third party payers
2,588
848
(1,781)
(498)
807
350
Contract diagnostics
427
856


427
856
3,906
2,220
(1,801)
(530)
2,105
1,690
Clinical research grants and other
11
65


11
65
$
3,917
$
2,285
$
(1,801)
$
(530)
$
2,116
$
1,755
Schedule of Reported Revenues Net of Collection Allowance [Table Text Block]For the Three Months Ended June 30,
Revenues, net of
(dollars in thousands)
Contractual Allowances
Allowances for doubtful
and adjustments
accounts
Total
2019
2018
2019
2018
2019
2018
Medicaid
$
9
$
11
$
(9)
$
(12)
$

$
(1)
Medicare
450
281
(68)
(42)
382
239
Self-pay
11
20


11
20
Third party payers
451
219
(180)
(88)
271
131
Contract diagnostics
274
368


274
368
1,195
899
(257)
(142)
938
757
Clinical research grants and other
4
60


4
60
$
1,199
$
959
$
(257)
$
(142)
$
942
$
817
For the Six Months Ended June 30,
Revenues, net of
(dollars in thousands)
Contractual Allowances
Allowances for doubtful
and adjustments
accounts
Total
2019
2018
2019
2018
2019
2018
Medicaid
$
12
$
23
$
(12)
$
(23)
$

$

Medicare
844
415
(127)
(62)
717
353
Self-pay
15
46


15
46
Third party payers
807
350
(322)
(141)
485
209
Contract diagnostics
427
856


427
856
2,105
1,690
(461)
(226)
1,644
1,464
Clinical research grants and other
11
65


11
65
$
2,116
$
1,755
$
(461)
$
(226)
$
1,655
$
1,529
Schedule of Receivables(dollars in thousands)
June 30, 2019
December 31, 2018
Medicaid
$
90
$
82
Medicare
770
633
Self-pay
73
108
Third party payers
1,852
1,382
Contract diagnostic services
269
193
Other


$
3,054
$
2,398
Less allowance for doubtful accounts
(2,171)
(1,708)
Accounts receivable, net
$
883
$
690
Schedule of Allowance for Doubtful AccountsAllowance for
Doubtful
(dollars in thousands)
Accounts
Balance, January 1, 2019
$
(1,708)
Collection Allowance:
Medicaid
$
(12)
Medicare
(127)
Third party payers
(322)
(461)
Bad debt expense
$
(2)
Total charges
(463)
Balance, June 30, 2019
$
(2,171)
Schedule of Customer Revenue and Accounts Receivable ConcentrationsCustomer revenue and accounts receivable concentration amounted to the following for the identified periods.
Three Months Ended
Six Months Ended
June 30,
June 30,
2019
2018
2019
2018
Percentage of net sales by customer:
Customer A
%
%
%
%
Customer B
%
*
*
*
* represents less than 10%
June 30,
December 31,
2019
2018
Percentage of total accounts receivable by customer:
Customer A
%
%
Customer B
*
*
* represents less than 10%

BUSINESS DESCRIPTION (Narrative

BUSINESS DESCRIPTION (Narrative) (Details)Jul. 01, 2019USD ($)sharesApr. 30, 2019USD ($)sharesApr. 25, 2019Jan. 15, 2019USD ($)Sep. 07, 2018USD ($)sharesAug. 09, 2019USD ($)sharesJun. 30, 2019USD ($)sharesJun. 30, 2019USD ($)sharesJun. 30, 2018USD ($)Dec. 31, 2018USD ($)sharesJun. 30, 2019USD ($)
Business Acquisition [Line Items]
Accumulated Net Income (Loss) $ 7,600,000 $ 7,600,000 $ 7,600,000
Working deficiency $ (2,400,000)(2,400,000)(2,400,000)
Net cash used in operating activities(4,887,000) $ (3,611,000)
Proceeds from issuance of common stock2,410,000 618,000
Proceeds from issuance of debt $ 2,150,000 $ 1,660,000
Reverse stock split15
Lincoln Park [Member]
Business Acquisition [Line Items]
Value of shares issued $ 10,000,000
Shares sold in offering (in shares) | shares328,590 240,000 998,076 328,590
Proceeds from issuance of common stock $ 1,400,000 $ 700,000 $ 2,400,000 $ 1,400,000 4,100,000
Equity purchase agreement value remaining available $ 5,900,000 5,900,000 $ 5,900,000
Lincoln Park [Member] | Maximum
Business Acquisition [Line Items]
Value of shares issued $ 1,000,000 $ 10,000,000
Shares sold in offering (in shares) | shares30,000
Crede Note
Business Acquisition [Line Items]
Proceeds from issuance of common stock $ 4,000,000
Subsequent Events
Business Acquisition [Line Items]
Shares sold in offering (in shares) | shares100,000
Proceeds from issuance of common stock $ 300,000
Subsequent Events | Lincoln Park [Member]
Business Acquisition [Line Items]
Shares sold in offering (in shares) | shares100,000
Proceeds from issuance of common stock $ 300,000

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Recent Accounting Pronouncements) (Details) - USD ($)Jun. 30, 2019Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liabilities $ 633,000 $ 750,000
Right-of-use assets $ 627,000 750,000
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liabilities700,000
Right-of-use assets $ 700,000

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Outstanding Securities not Included in the Computation of Diluted Net Loss) (Details) - shares6 Months Ended
Jun. 30, 2019Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the computation of diluted net loss per share1,760,336 941,882
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the computation of diluted net loss per share501,242 227,337
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the computation of diluted net loss per share909,189 460,876
Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the computation of diluted net loss per share20,888 10,445
Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the computation of diluted net loss per share329,017 243,224

LONG-TERM DEBT (Schedule of Deb

LONG-TERM DEBT (Schedule of Debt) (Details) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Debt Instrument [Line Items]
Total debt $ 326 $ 516
Current portion of long-term debt(103)(263)
Long-term debt, net of current maturities223 253
Department of Economic and Community Development (DECD)
Debt Instrument [Line Items]
Total debt263 274
Debt issuance cost(26)(28)
Financed Insurance Loan [Member]
Debt Instrument [Line Items]
Total debt32 204
Convertible Debt [Member]
Debt Instrument [Line Items]
Current portion of long-term debt(39)(4,377)
Long-term debt, net of current maturities0 0
Convertible Debt [Member] | Convertible bridge notes
Debt Instrument [Line Items]
Debt issuance cost(2,158)(1,111)
Settlement Agreement [Member]
Debt Instrument [Line Items]
Total debt $ 57 $ 66

LONG-TERM DEBT (Department of E

LONG-TERM DEBT (Department of Economic and Community Development) (Details) - USD ($)Jan. 08, 2018Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Jan. 02, 2019Dec. 31, 2018
Debt Instrument [Line Items]
Proceeds from long-term debt $ 300,000
Interest rate (as a percent)8.00%
Service revenue, net $ 1,199,000 $ 959,000 $ 2,116,000 1,755,000
Total debt326,000 326,000 $ 516,000
Department of Economic and Community Development (DECD)
Debt Instrument [Line Items]
Gross proceeds from grant received and loan $ 400,000
Proceeds from grant $ 100,000
Debt instrument, term10 years
Debt instrument, maturity dateDec. 31,
2027
Interest rate (as a percent)3.25%
Total debt263,000 263,000 274,000
Term loan | Department of Economic and Community Development (DECD)
Debt Instrument [Line Items]
Proceeds from long-term debt $ 300,000
Debt issuance costs, net $ 31,000 26,000 26,000 $ 28,000
Amortization of debt issuance cost2,000 $ 2,000
20193,000 3,000
20203,000 3,000
20213,000 3,000
20223,000 3,000
2023 $ 3,000 $ 3,000

LONG-TERM DEBT (Financed Insura

LONG-TERM DEBT (Financed Insurance Loan) (Details) - USD ($)Jun. 30, 2019Jan. 02, 2019Dec. 31, 2018Jul. 31, 2018Jul. 31, 2017
Debt Instrument [Line Items]
Interest rate (as a percent)8.00%
Total debt $ 326,000 $ 516,000
Financed Insurance Loan [Member]
Debt Instrument [Line Items]
Debt instrument, face amount $ 400,000 $ 400,000
Interest rate (as a percent)4.89%4.99%
Total debt $ 32,000 $ 204,000

LONG-TERM DEBT (Settlement Agre

LONG-TERM DEBT (Settlement Agreement) (Details) - USD ($) $ in Thousands6 Months Ended
Jun. 30, 2019Jan. 02, 2019Dec. 31, 2018Sep. 21, 2018Dec. 31, 2017
Debt Instrument [Line Items]
Interest rate (as a percent)8.00%
Total debt $ 326 $ 516
Settlement Agreements
Debt Instrument [Line Items]
Total debt $ 3,200
Settlement Agreement [Member]
Debt Instrument [Line Items]
Total debt $ 57 66
Settlement Agreement [Member] | Settlement Agreements
Debt Instrument [Line Items]
Frequency of periodic paymentmonthly
Debt instrument, term2 years
Date of first required paymentNov. 1,
2018
Maturity dateNov. 1,
2020
Debt instrument, face amount $ 100
Interest rate (as a percent)10.00%
Total debt $ 100 $ 100

CONVERTIBLE NOTES (Details)

CONVERTIBLE NOTES (Details) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Debt Instrument [Line Items]
Current portion of long-term debt $ (103) $ (263)
Long-term debt, net of current maturities223 253
Convertible Debt [Member]
Debt Instrument [Line Items]
Convertible notes39 4,377
Current portion of long-term debt(39)(4,377)
Long-term debt, net of current maturities0 0
Convertible bridge notes | Convertible Debt [Member]
Debt Instrument [Line Items]
Convertible notes2,197 4,294
Debt issuance cost $ (2,158)(1,111)
Convertible bridge notes premiums647
Convertible promissory notes - Exchange Notes | Convertible Debt [Member]
Debt Instrument [Line Items]
Convertible notes630
Debt issuance cost $ (83)

CONVERTIBLE NOTES - Bridge Note

CONVERTIBLE NOTES - Bridge Notes (Details)May 14, 2019USD ($)D$ / sharessharesApr. 16, 2019USD ($)D$ / sharessharesFeb. 12, 2019USD ($)sharesNov. 29, 2018USD ($)sharesSep. 17, 2018USD ($)Apr. 20, 2018USD ($)Apr. 30, 2018USD ($)$ / sharessharesJun. 30, 2019USD ($)$ / sharessharesMar. 31, 2019USD ($)Dec. 31, 2018USD ($)$ / sharessharesSep. 30, 2018USD ($)item$ / sharessharesJun. 30, 2018USD ($)Jun. 30, 2019USD ($)$ / sharessharesJun. 30, 2018USD ($)Apr. 30, 2019$ / sharesJan. 02, 2019Aug. 31, 2017$ / shares
Debt Instrument [Line Items]
Interest rate (as a percent)8.00%
Proceeds from issuance of debt $ 2,150,000 $ 1,660,000
Total debt $ 326,000 $ 516,000 326,000
Warrant revaluation and modification582,000 (584,000)
Derivative liability from debt discount400,000 400,000
Loss on modification of warrants $ (1,128,000)(1,128,000)
Proceeds from convertible notes $ 2,150,000 1,660,000
Derivative asset (liability)62,000 $ 143,000 143,000
Warrant liability canceled due to settlement of equity instruments456,000
Number of shares converted from debt instrument (in shares) | shares120,983
Conversion of convertible debt plus interest into common stock $ 1,900,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares909,189 909,189
Wrote-off of debt discount with an offset to additional paid in capital $ 842,000 $ (315,000)
Write-off debt derivative liability in conjunction with convertible note conversions39,000 438,000
Long-term debt, net of current maturities223,000 253,000 $ 223,000
Gain (Loss) on Derivative Instruments Held for Trading Purposes, Net $ (438,000)(1,000)(415,000)(1,000)
Bridge Notes Redemption Feature [Member]
Debt Instrument [Line Items]
Derivative asset (liability) $ 30,000 143,000 143,000
Maximum
Debt Instrument [Line Items]
Write-off debt derivative liability in conjunction with convertible note conversions $ 100,000
Convertible Promissory Note Warrants
Debt Instrument [Line Items]
Exercise price (in dollars per share) | $ / shares $ 21 $ 21 $ 45
April 2018 Warrants, First Half
Debt Instrument [Line Items]
Class of Warrant or Right, Term5 years5 years
April 2018 Warrants, Second Half
Debt Instrument [Line Items]
Class of Warrant or Right, Term1 year1 year
Warrants term1 year
April 2018 Warrants
Debt Instrument [Line Items]
Stock rights issued (in shares) | shares | shares243,224
Warrants, fair value $ 1,100,000
Exercise price (in dollars per share) | $ / shares $ 11.25 $ 7.50
Payments of financial advisor fees $ 116,000
Advisor fees as a percentage of proceeds7.00%
Amended Warrants
Debt Instrument [Line Items]
Exercise price (in dollars per share) | $ / shares $ 5.40
Loss on modification of warrants $ 1,100,000
Warrants term5 years
Advisor Warrants
Debt Instrument [Line Items]
Stock rights issued (in shares) | shares | shares15,466
Senior Secured Convertible Promissory Notes
Debt Instrument [Line Items]
Debt discount $ 400,000 400,000
Conversion of convertible debt plus interest into common stock $ 2,800,000
Debt instrument, term18 months
Quarter 3 2018 Warrants
Debt Instrument [Line Items]
Stock rights issued (in shares) | shares | shares196,340
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants term5 years
Quarter 4 2018 Warrants
Debt Instrument [Line Items]
Stock rights issued (in shares) | shares | shares300,115
2018 Note Agreement
Debt Instrument [Line Items]
Debt instrument, face amount $ 3,296,703
Exercise price (in dollars per share) | $ / shares $ 4.50
2018 Note Agreement | April 2018 Warrants
Debt Instrument [Line Items]
Conversion price per share | $ / shares $ 11.25
2018 Note Agreement | Advisor Warrants
Debt Instrument [Line Items]
Stock rights issued (in shares) | shares | shares15,466
Warrants, fair value $ 100,000
Exercise price (in dollars per share) | $ / shares $ 11.25
April 2018 Bridge Notes
Debt Instrument [Line Items]
Derivative liability from debt discount $ 100,000
May 2019 Bridge Notes
Debt Instrument [Line Items]
Stock rights issued (in shares) | shares | shares154,343
Warrants, fair value $ 900,000
Exercise price (in dollars per share) | $ / shares $ 9.56
Warrants term5 years
Convertible Debt [Member]
Debt Instrument [Line Items]
Debt, carrying amount39,000 $ 4,377,000 39,000
Long-term debt, net of current maturities0 0 0
Convertible Debt [Member] | Quarter 3 2018 Warrants
Debt Instrument [Line Items]
Warrants, fair value $ 700,000
Exercise price (in dollars per share) | $ / shares $ 11.25
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares196,340
Convertible Debt [Member] | Quarter 4 2018 Warrants
Debt Instrument [Line Items]
Warrants, fair value $ 700,000
Exercise price (in dollars per share) | $ / shares $ 5.40
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares300,115
Warrants term5 years
Convertible Debt [Member] | Convertible Bridge Loan
Debt Instrument [Line Items]
Debt instrument, face amount1,800,000 1,800,000
Interest rate (as a percent)8.00%
Discount percentage9.00%
Conversion threshold percentage of stock price trigger80.00%
Convertible debt, threshold consecutive trading days | item10
Conversion price per share | $ / shares $ 7.50
Repayment Period180 days
Debt discount and debt issuance costs as a reduction of the related debt1,800,000 1,800,000
Early repayment trigger, amount of gross proceeds7,000,000
Debt Instrument, Period To File Registration Statement30 days
Percentage per month charged as damages if registration statement not filed by deadline1.00%
Debt discount2,158,000 $ 1,053,000 $ 1,111,000 $ 164,000 1,815,000 2,158,000 1,815,000
Debt issuance costs, net $ 164,000
Beneficial conversion feature1,100,000
Net debt issuance costs and debt discounts2,700,000 2,700,000
Loss on issuance of convertible notes900,000
Debt, carrying amount $ 6,600,000
Debt premium on debt91,000 $ 647,000 91,000
Number of shares converted from debt instrument (in shares) | shares1,869,352
Conversion of convertible debt plus interest into common stock $ 4,400,000
Amortization of debt discount55,000 9,000 113,000 9,000
Amortization of debt premium7,000 $ 167,000
Convertible Debt [Member] | Convertible Bridge Loan | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage105.00%
Convertible Debt [Member] | Convertible Bridge Loan | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage110.00%
Convertible Debt [Member] | Convertible Bridge Loan | Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage115.00%
Convertible Debt [Member] | Convertible Bridge Loan | Minimum
Debt Instrument [Line Items]
Conversion price per share | $ / shares $ 4.50
Convertible Debt [Member] | Convertible Bridge Loan | Maximum
Debt Instrument [Line Items]
Debt instrument, term1 year
Convertible Debt [Member] | April 2018 Bridge Notes
Debt Instrument [Line Items]
Discount percentage9.00%
Proceeds from issuance of debt $ 1,660,000
Total debt1,824,176 1,824,176
Proceeds from convertible notes1,660,000
Amortization of debt discount $ 0 $ 9,000 $ 0 $ 9,000
Convertible Debt [Member] | April 2019 Bridge Notes
Debt Instrument [Line Items]
Debt instrument, face amount $ 1,000,000
Discount percentage9.00%
Proceeds from issuance of debt $ 900,000
Total debt989,011
Debt discount and debt issuance costs as a reduction of the related debt1,000,000
Debt discount $ 89,000
Stock rights issued (in shares) | shares | shares147,472
Warrants, fair value $ 1,000,000
Exercise price (in dollars per share) | $ / shares $ 5.40
Beneficial conversion feature $ 900,000
Net debt issuance costs and debt discounts2,000,000
Loss on issuance of convertible notes1,000,000
Proceeds from convertible notes $ 900,000
Warrants term5 years
Convertible Debt [Member] | April 2019 Bridge Notes | Amendment Agreement
Debt Instrument [Line Items]
Conversion threshold percentage of stock price trigger80.00%
Convertible debt, threshold consecutive trading days | D10
Conversion price per share | $ / shares $ 0.75
Floor price | $ / shares2.25
Convertible Debt [Member] | April 2019 Bridge Notes | Maximum | Amendment Agreement
Debt Instrument [Line Items]
Conversion price per share | $ / shares $ 3.75
Convertible Debt [Member] | May 2019 Bridge Notes
Debt Instrument [Line Items]
Debt instrument, face amount $ 1,098,901
Conversion threshold percentage of stock price trigger80.00%
Convertible debt, threshold consecutive trading days | D10
Conversion price per share | $ / shares $ 7.12
Repayment Period180 days
Proceeds from issuance of debt $ 1,000,000
Debt discount and debt issuance costs as a reduction of the related debt1,100,000
Debt discount99,000
Beneficial conversion feature900,000
Net debt issuance costs and debt discounts2,000,000
Loss on issuance of convertible notes $ 900,000
Original issue discount (as a percent)9
Proceeds from convertible notes $ 1,000,000
Floor price | $ / shares $ 2.25
Convertible Debt [Member] | Quarter 4 2018 Bridge Notes
Debt Instrument [Line Items]
Number of shares converted from debt instrument (in shares) | shares756,588 1,776,018
Conversion of convertible debt plus interest into common stock $ 2,100,000 $ 4,200,000

CONVERTIBLE NOTES (Bridge Note

CONVERTIBLE NOTES (Bridge Note debt discounts and debt premiums) (Details) - Convertible Debt [Member] - Convertible Bridge Loan - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Debt discounts
Beginning balance $ (1,053) $ (1,111)
Additions(2,086) $ (1,824)(2,086) $ (1,824)
Deductions: Amortization/accretion55 9 113 9
Deductions: Write-off related to note conversions926 926
Ending balance(2,158) $ (1,815)(2,158) $ (1,815)
Debt premiums
Beginning balance647
Deductions: Amortization/accretion(7)(167)
Deductions: Write-off related to note conversions(84)(480)
Ending balance $ 91 $ 91

CONVERTIBLE NOTES (Convertible

CONVERTIBLE NOTES (Convertible Promissory Notes - Exchange Notes) (Details) - USD ($) $ / shares in Units, $ in ThousandsFeb. 12, 2019Sep. 17, 2018Jun. 30, 2019Jun. 30, 2019Jun. 30, 2018Dec. 31, 2017Dec. 31, 2018Feb. 28, 2018
Debt Instrument [Line Items]
Total debt $ 326 $ 326 $ 516
Class of Warrant or Right, Number of Securities Called by Warrants or Rights909,189 909,189
Original debt amount $ 456
Conversion of convertible debt plus interest into common stock $ 1,900
Number of shares converted from debt instrument (in shares)120,983
Creditor Warrants Relating to Secured Debt [Member]
Debt Instrument [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights7,207 7,207
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 112.50
Senior Secured Convertible Promissory Notes
Debt Instrument [Line Items]
Debt instrument, term18 months
Conversion of convertible debt plus interest into common stock $ 2,800
Settlement Agreements
Debt Instrument [Line Items]
Total debt $ 3,200
Warrants and Rights Outstanding1,900
Secured Debt [Member]
Debt Instrument [Line Items]
Original debt amount $ 3,200
Debt Restructured6,300
Convertible Debt [Member] | Convertible promissory notes - Exchange Notes
Debt Instrument [Line Items]
Conversion of convertible debt plus interest into common stock $ 0 $ 600 $ 2,800
Number of shares converted from debt instrument (in shares)0 155,351 446,913

CONVERTIBLE NOTES (Exchange Not

CONVERTIBLE NOTES (Exchange Note debt discounts) (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Mar. 31, 2019Dec. 31, 2018Jun. 30, 2018Jun. 30, 2019
Debt discounts
Write off of derivative liability $ 400
Offset by additional paid in capital $ 39 $ 438
Maximum
Debt discounts
Offset by additional paid in capital $ 100
Convertible promissory notes - Exchange Notes | Convertible Debt [Member]
Debt discounts
Beginning balance $ (83)(83)
Deductions: Amortization/accretion2
Deductions: Write-off related to note conversions81
Ending balance $ (83) $ 0

CONVERTIBLE NOTES (Convertibl_2

CONVERTIBLE NOTES (Convertible Promissory Notes) (Details) $ in ThousandsApr. 16, 2019USD ($)sharesFeb. 12, 2019USD ($)sharesJan. 29, 2019USD ($)installmentsharesJan. 15, 2019USD ($)Feb. 09, 2018sharesJun. 30, 2019USD ($)sharesJun. 30, 2019USD ($)sharesJun. 30, 2018USD ($)Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Payments on notes $ 231 $ 196
Conversion of convertible debt plus interest into common stock $ 1,900
Number of shares converted from debt instrument (in shares) | shares120,983
Proceeds from issuance of common stock2,410 618
Proceeds from issuance of debt2,150 $ 1,660
Crede Note
Debt Instrument [Line Items]
Payments on notes $ 0 0
Conversion of convertible debt plus interest into common stock $ 1,450
Number of shares converted from debt instrument (in shares) | shares270,699
Outstanding debt0 0
Issuance of convertible notes $ 1,450
Conversion price based on closing bid price of common stock on the date prior to each conversion date (as a percent)90.00%
Proceeds from issuance of common stock $ 4,000
Beneficial Ownership Cap4.99%
Leviston Resources LLC
Debt Instrument [Line Items]
Payments on notes0
Conversion of convertible debt plus interest into common stock $ 500 $ 700
Number of shares converted from debt instrument (in shares) | shares111,023 184,357
Outstanding debt $ 0 $ 0
Beneficial Ownership Cap4.99%
New shares issued (in shares) | shares10,000 48,076
Percentage of daily average composite trading volume10.00%
Leviston Resources LLC | Other current liabilities
Debt Instrument [Line Items]
Outstanding debt $ 500
Leviston Resources LLC | Accrued expenses
Debt Instrument [Line Items]
Outstanding debt $ 200
Settled Litigation | Leviston Resources LLC
Debt Instrument [Line Items]
Issuance of convertible notes $ 700
Number of equal monthly installments | installment14
Settled Litigation | Leviston Resources LLC | Crede Note | Accrued expenses
Debt Instrument [Line Items]
Issuance of convertible notes $ 200
Maximum | Crede Note
Debt Instrument [Line Items]
New shares issued (in shares) | shares10,000
Percentage of daily average composite trading volume10.00%
Maximum | Leviston Resources LLC
Debt Instrument [Line Items]
Payments on notes $ 100
Minimum | Settled Litigation
Debt Instrument [Line Items]
Proceeds from issuance of common stock $ 4,000

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Accrued Expenses) (Details) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued expenses $ 1,325 $ 1,583
Accrued compensation277 118
Accrued interest53 239
Accrued expenses $ 1,655 $ 1,940

ACCRUED EXPENSES AND OTHER CU_4

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Other Current Liabilities) (Details)Dec. 31, 2018USD ($)
Payables and Accruals [Abstract]
Liability related to equity purchase agreement $ 460,000
Liability for settlement of equity instrument1,450,000
Other Liabilities, Current, Total $ 1,910,000

ACCRUED EXPENSES AND OTHER CU_5

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Narrative) (Details) - USD ($)Mar. 12, 2018Jun. 30, 2019Jun. 30, 2018Mar. 31, 2018Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018Jan. 29, 2019Jan. 15, 2019
Reduction in Certain Accrued Expense and Accounts Payable $ 1,100,000 $ 100,000 $ 1,300,000 $ 100,000
Common stock warrant liabilities2,336,000 2,336,000 $ 1,132,000
Gain in warrant revaluation $ 200,000
Gain (loss) on settlement of equity instrments $ 1,084,000 $ 6,000 1,251,000 147,000
Proceeds from convertible notes $ 2,150,000 1,660,000
Liability related to equity purchase agreement460,000
Other current liabilities
Liability related to equity purchase agreement500,000
Crede Note
Warrants, fair value $ 400,000
Gain (loss) on settlement of equity instrments $ (400,000)
Issuance of convertible notes $ 1,450,000
Settled Litigation | Crede Note
Litigation Settlement, Amount Awarded to Other Party $ 1,925,000
Liability For Settlement Payment Period16 months
Damages paid $ 500,000
Settled Litigation | Leviston Resources LLC
Issuance of convertible notes $ 700,000
Settled Litigation | Leviston Resources LLC | Crede Note | Accrued expenses
Issuance of convertible notes $ 200,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($)Jul. 10, 2019Jun. 21, 2019Apr. 19, 2019Apr. 02, 2019Jan. 02, 2019Mar. 21, 2018Jun. 30, 2019Jun. 30, 2019Dec. 31, 2018
Loss Contingencies [Line Items]
Interest rate (as a percent)8.00%
Insurance deductible amount $ 800,000
Settlement Agreements
Loss Contingencies [Line Items]
Repayments of debt to service provider $ 600,000 $ 400,000 600,000
Outstanding debt $ 1,500,000
(Gain) loss on extinguishment of debt900,000 900,000
XIFIN, Inc.
Loss Contingencies [Line Items]
Loss contingency, damages sought270,000
Loss contingency accrual $ 100,000
Litigation settlement in favor of other party, amount $ 40,000
CPA Global
Loss Contingencies [Line Items]
Loss contingency, damages sought200,000
Loss contingency accrual100,000 100,000 $ 100,000
Bio-Rad Laboratories
Loss Contingencies [Line Items]
Litigation settlement in favor of other party, amount $ 39,000
Loss Contingency Accrual, Payments $ 0
Jesse Cambell
Loss Contingencies [Line Items]
Loss contingency accrual $ 300,000 300,000
Litigation settlement in favor of other party, amount $ 1,950,000
Legal Fees $ 500,000
Expected amount to be paid by insurance company $ 1,700,000

LEASES - Narrative (Details)

LEASES - Narrative (Details)Jan. 01, 2019USD ($)itemJun. 30, 2019USD ($)
Lessee, Lease, Description [Line Items]
Right-of-use assets $ 750,000 $ 627,000
Lease liabilities $ 750,000 633,000
Operating leases144,000
Right-of-use assets obtained in exchange for lease obligations $ 750,000
Minimum
Lessee, Lease, Description [Line Items]
Facility leases | item1
Renewal term1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term5 years
ASU 2016-02
Lessee, Lease, Description [Line Items]
Right-of-use assets $ 700,000
Lease liabilities700,000
Increase (decrease) in deferred rent and prepaid expenses(6,000)
Current prepaid expense6,000
Cumulative effect adjustment $ 0

LEASES - Operating and Financin

LEASES - Operating and Financing leases (Details) - USD ($)Jun. 30, 2019Jan. 01, 2019Dec. 31, 2018
Balance sheet presentation of our operating and financing leases
Operating lease right-of-use assets $ 627,000 $ 750,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]Operating lease right-of-use assets
Finance lease assets $ 193,000
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]Property, Plant and Equipment, Net
Total lease assets $ 820,000
Operating lease obligations, current $ 212,000
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]Operating lease obligations, current
Finance lease obligations $ 51,000 $ 57,000
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]Finance lease obligations
Operating lease liabilities, less current maturities $ 421,000
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]Operating lease liabilities, less current maturities
Finance lease liabilities, less current maturities $ 133,000 $ 155,000
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]Finance lease liabilities, less current maturities
Total lease liabilities $ 817,000

LEASES - Future Minimum Lease P

LEASES - Future Minimum Lease Payments (Details) - USD ($)Jun. 30, 2019Jan. 01, 2019Dec. 31, 2018
Operating leases, estimated future minimum lease payments
Remainder of 2019 $ 129,000
2020242,000
2021241,000
202248,000
202335,000
Thereafter17,000
Total lease obligations712,000
Less: Amount representing interest(79,000)
Present value of net minimum lease obligations633,000 $ 750,000
Less, current portion(212,000)
Long term portion421,000
Finance leases, estimated future minimum lease payments
Remainder of 201935,000
202046,000
202138,000
202232,000
202327,000
Thereafter41,000
Total lease obligations219,000
Less: Amount representing interest(35,000)
Finance Lease, Liability, Total184,000
Less, current portion(51,000) $ (57,000)
Long term portion133,000 $ 155,000
Remainder of 2019164,000
2020288,000
2021279,000
202280,000
202362,000
Thereafter58,000
Total lease obligations931,000
Less: Amount representing interest(114,000)
Total lease liabilities817,000
Less, current portion(263,000)
Long term portion $ 554,000

LEASES - Operating and Financ_2

LEASES - Operating and Financing Lease Cost (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease costs $ 0.1 $ 0.1 $ 0.2 $ 0.1
Finance leases, amortization expense and interest $ 0.1 $ 0.1
Minimum
Lessee, Lease, Description [Line Items]
Renewal term1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term5 years

LEASES - Other Information (Det

LEASES - Other Information (Details)Jun. 30, 2019
Leases [Abstract]
Operating leases (in years)3 years
Finance leases (in years)4 years 9 months 18 days
Operating leases discount rate8.00%
Finance leases discount rate7.25%

STOCKHOLDERS' EQUITY (Common St

STOCKHOLDERS' EQUITY (Common Stock, 2018 Purchase Agreement and LP Purchase Agreement) (Details)Jul. 01, 2019USD ($)sharesApr. 30, 2019USD ($)sharesApr. 25, 2019Feb. 12, 2019USD ($)sharesFeb. 01, 2019sharesJan. 29, 2019USD ($)sharesSep. 14, 2018sharesSep. 07, 2018USD ($)$ / sharessharesFeb. 09, 2018USD ($)$ / sharessharesFeb. 08, 2018USD ($)Aug. 09, 2019USD ($)sharesJun. 30, 2019USD ($)sharesMar. 31, 2019shares[1]Jun. 30, 2018USD ($)sharesMar. 31, 2018sharesJun. 30, 2019USD ($)sharesJun. 30, 2018USD ($)sharesDec. 31, 2018USD ($)sharesJun. 30, 2019USD ($)sharesJan. 01, 2019sharesDec. 20, 2018sharesSep. 06, 2018shares
Class of Stock [Line Items]
Common stock, shares authorized (in shares)150,000,000 150,000,000 150,000,000 150,000,000 250,000,000 150,000,000
Reverse stock split15
Conversion of convertible notes into common stock (in shares)120,983
Common stock, shares outstanding (in shares)5,993,369 5,993,369 2,298,738 5,993,369 1,543,724
Issuance of common stock, net of issuance costs | $ $ 2,410,000 $ 618,000
Conversion of convertible debt plus interest into common stock | $ $ 1,900,000
Liability recorded related to equity purchase agreement repricing | $460,000 460,000
Liability related to equity purchase agreement | $ $ 460,000
Number of shares converted from debt instrument (in shares)120,983
Conversion of debt into stock | $ $ 1,900,000
Liability for settlement of equity instrument | $1,450,000
Other current liabilities | $1,910,000
Proceeds from exercise of warrants | $ $ 1,575,000 $ 1,092,000
Common Stock
Class of Stock [Line Items]
Conversion of convertible notes into common stock (in shares)1,138,310 [1]1,248,115 192,733 212,733
Common stock issued for exercise of warrants310,200 310,200
Common stock issued in connection with the conversion of convertible notes1,138,310 2,386,425
Number of shares converted (in shares)(431,022)
Conversion of convertible debt plus interest into common stock | $ $ 4,100,000 $ 7,300,000
Number of shares converted from debt instrument (in shares)1,138,310 [1]1,248,115 192,733 212,733
Conversion of debt into stock | $ $ 4,100,000 $ 7,300,000
Warrant exercises in period310,200 192,733 310,200 212,733
Proceeds from exercise of warrants | $ $ 900,000 $ 1,600,000 $ 1,100,000
Leviston Resources LLC
Class of Stock [Line Items]
Proceeds from sale of stock | $ $ 750,000
Proceeds from Issuance of Private Placement | $ $ 750,000
Series B Preferred Stock
Class of Stock [Line Items]
Common stock issued on conversion of preferred shares208,000
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Number of shares converted (in shares)2,548
Common stock issued on conversion of preferred shares223,022
Stock Not Issued, Shares4,000
Preferred Class B
Class of Stock [Line Items]
Number of shares converted (in shares)2,340
Common stock issued on conversion of preferred shares208,000
Subsequent Events
Class of Stock [Line Items]
Shares sold in offering (in shares)100,000
Issuance of common stock, net of issuance costs | $ $ 300,000
Leviston Resources LLC
Class of Stock [Line Items]
Issuance costs | $ $ 132,000
Conversion of convertible notes into common stock (in shares)111,023 184,357
Issuance of common stock for consulting services in connection with the merger (in shares)11,381
New shares issued (in shares)10,000 48,076
Beneficial Ownership Cap4.99%
Conversion of convertible debt plus interest into common stock | $ $ 500,000 $ 700,000
Equity Purchase Agreement | $ $ 8,000,000
Equity Purchase Agreement, Commitment Fee Percentage5.25%
Equity Purchase Agreement, Commitment Fee Installment Percentage1.75%
Share price (in dollars per share) | $ / shares $ 15.60
Stock Issued During Period, Shares, Issued for Services11,381
Stock Issued During Period, Value, Issued for Services | $ $ 140,000
Accruals for potential obligations to the Investor | $ $ 700,000
Number of shares converted from debt instrument (in shares)111,023 184,357
Conversion of debt into stock | $ $ 500,000 $ 700,000
Leviston Resources LLC | Settled Litigation
Class of Stock [Line Items]
Issuance of convertible notes | $ $ 700,000
Lincoln Park [Member]
Class of Stock [Line Items]
New shares issued (in shares)1,000,000 466,666 40,000
Value of shares issued | $ $ 10,000,000
Maximum percentage of shares issued19.99%
Maximum number of shares issued308,590
Beneficial Ownership Cap4.99%
Shares sold in offering (in shares)328,590 240,000 998,076 328,590
Issuance of common stock, net of issuance costs | $ $ 1,400,000 $ 700,000 $ 2,400,000 $ 1,400,000 $ 4,100,000
Share price (in dollars per share) | $ / shares $ 7.05
Lincoln Park [Member] | Subsequent Events
Class of Stock [Line Items]
Shares sold in offering (in shares)100,000
Issuance of common stock, net of issuance costs | $ $ 300,000
Minimum | Settled Litigation
Class of Stock [Line Items]
Issuance of common stock, net of issuance costs | $ $ 4,000,000
Minimum | Lincoln Park [Member]
Class of Stock [Line Items]
Share price (in dollars per share) | $ / shares $ 1.50
Maximum | Lincoln Park [Member]
Class of Stock [Line Items]
Value of shares issued | $ $ 1,000,000 $ 10,000,000
Shares sold in offering based on market price36,666
Shares sold in offering (in shares)30,000
[1]The common stock shares and additional paid-in capital for all periods presented reflect the one-for fifteen reverse stock split, which took effect on April 26, 2019.

STOCKHOLDERS' EQUITY (Preferred

STOCKHOLDERS' EQUITY (Preferred Stock) (Details) - sharesJun. 30, 2019Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Preferred stock, shares authorized (in shares)15,000,000 15,000,000

STOCKHOLDERS' EQUITY (Series B

STOCKHOLDERS' EQUITY (Series B Preferred Stock) (Details) - USD ($)1 Months Ended6 Months Ended
Aug. 31, 2017Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018Apr. 30, 2018Feb. 28, 2018Dec. 31, 2017Nov. 30, 2017Aug. 25, 2017
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares)15,000,000 15,000,000
Preferred stock, shares outstanding (in shares)47 47
Preferred stock, shares issued (in shares)47 47
Offering Warrants
Class of Stock [Line Items]
Stock rights issued (in shares)178,666
Exercise price (in dollars per share) $ 45 $ 11.25 $ 4.50 $ 15.60 $ 21
Proceeds from issuance of warrants $ 15,000 $ 771,000
Preferred Class B
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share) $ 0.01
Number of shares converted (in shares)2,340
Common stock issued on conversion of preferred shares208,000
Preferred stock, shares authorized (in shares)6,900 6,900 6,900
Preferred stock, shares outstanding (in shares)47 47
Preferred stock, shares issued (in shares)6,900 6,900
Preferred Stock, Liquidation Preference Per Share $ 1,000
2018 Inducement Agreement | Preferred Class B
Class of Stock [Line Items]
Conversion price (in dollars per share) $ 11.25 $ 15.60
2018 Inducement Agreement | Preferred Class B | Deemed Dividend B
Class of Stock [Line Items]
Beneficial conversion feature $ 40,000,000
2018 Purchase Agreement | Preferred Class B
Class of Stock [Line Items]
Conversion price (in dollars per share) $ 15.60 $ 21
2018 Purchase Agreement | Preferred Class B | Deemed Dividend A
Class of Stock [Line Items]
Beneficial conversion feature $ 1,400,000
2018 Note Agreement | Preferred Class B
Class of Stock [Line Items]
Conversion price (in dollars per share) $ 4.50 $ 11.25
2018 Note Agreement | Preferred Class B | Deemed Dividend K
Class of Stock [Line Items]
Beneficial conversion feature $ 200,000

STOCKHOLDERS' EQUITY (Series C

STOCKHOLDERS' EQUITY (Series C Preferred Stock) (Details) - USD ($) $ / shares in Units, $ in Millions6 Months Ended
Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018Dec. 31, 2017Nov. 06, 2017
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares)15,000,000 15,000,000
Preferred stock, shares outstanding (in shares)47 47
Preferred stock, shares issued (in shares)47 47
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share) $ 0.01
Number of shares converted (in shares)2,548
Preferred stock, shares authorized (in shares)2,748 2,748 2,748
Preferred stock, shares outstanding (in shares)0 0
Preferred stock, shares issued (in shares)2,748 2,748
Preferred Stock, Liquidation Preference Per Share $ 1,000
Common stock issued on conversion of preferred shares223,022
Placement Agreement | Series C Preferred Stock [Member]
Class of Stock [Line Items]
Conversion price (in dollars per share) $ 21
2018 Purchase Agreement | Series C Preferred Stock [Member]
Class of Stock [Line Items]
Conversion price (in dollars per share) $ 15.60
2018 Purchase Agreement | Series C Preferred Stock [Member] | Deemed Dividend C
Class of Stock [Line Items]
Beneficial conversion feature $ 0.8

STOCKHOLDERS' EQUITY (Preferr_2

STOCKHOLDERS' EQUITY (Preferred Stock Induced Conversions) (Details) - USD ($)Feb. 12, 2019Mar. 21, 2018Jun. 30, 2019Dec. 31, 2018
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)15,000,000 15,000,000
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Number of shares converted from debt instrument (in shares)120,983
Conversion of convertible debt plus interest into common stock $ 1,900,000
Warrants exercised20,000
Preferred stock, shares outstanding (in shares)47 47
Preferred stock, shares issued (in shares)47 47
Preferred Stock [Member]
Class of Stock [Line Items]
Shares not converted47
Preferred Stock [Member] | 2018 Inducement Agreement
Class of Stock [Line Items]
Conversion price (in dollars per share) $ 11.25
Exercise price (in dollars per share) $ 11.25 $ 15.60
Preferred Stock [Member] | 2018 Inducement Agreement | Deemed Dividend D
Class of Stock [Line Items]
Warrants, fair value $ 1,200,000
Convertible Preferred Stock [Member] | Preferred Stock Induced Conversions, First Investor [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Warrants or Rights Exercised44,444
Convertible Preferred Stock [Member] | Preferred Stock Induced Conversions, Second Investor [Member]
Class of Stock [Line Items]
Issuance of warrants in conjunction with issuance of side agreement $ 33,333

STOCKHOLDERS' EQUITY (Schedule

STOCKHOLDERS' EQUITY (Schedule of Warrants) (Details)Jun. 30, 2019$ / sharesshares
Class of Stock [Line Items]
Underlying shares (in shares)909,189
Warrants Assumed in Merger, Expiring April 2020 [Member]
Class of Stock [Line Items]
Underlying shares (in shares)832
Exercise price (in dollars per share) | $ / shares $ 1,800
Warrants Assumed in Merger, Expiring February 2020 [Member]
Class of Stock [Line Items]
Underlying shares (in shares)1,588
Exercise price (in dollars per share) | $ / shares $ 1,008
Warrants Assumed in Merger, Expiring December 2020 [Member]
Class of Stock [Line Items]
Underlying shares (in shares)272
Exercise price (in dollars per share) | $ / shares $ 747
Warrants Assumed in Merger, Expiring January 2021, Group A [Member]
Class of Stock [Line Items]
Underlying shares (in shares)596
Exercise price (in dollars per share) | $ / shares $ 544.50
Warrants outstanding (in shares)239
Warrants Not Assumed in Merger, Expiring June 2022, Group A [Member]
Class of Stock [Line Items]
Underlying shares (in shares)2,540
Exercise price (in dollars per share) | $ / shares $ 41.25
Warrants Not Assumed in Merger, Expiring June 2022, Group B [Member]
Class of Stock [Line Items]
Underlying shares (in shares)500
Exercise price (in dollars per share) | $ / shares $ 7.50
Warrants Not Assumed In Merger, Expiring June 2022 Group C [Member]
Class of Stock [Line Items]
Underlying shares (in shares)6,095
Exercise price (in dollars per share) | $ / shares $ 105
Warrants Not Assumed in Merger, Expiring August 2022, Group A [Member]
Class of Stock [Line Items]
Underlying shares (in shares)25,201
Exercise price (in dollars per share) | $ / shares $ 2.25
Warrants Not Assumed in Merger, Expiring August 2022, Group B [Member]
Class of Stock [Line Items]
Underlying shares (in shares)4,000
Exercise price (in dollars per share) | $ / shares $ 46.880
Warrants Not Assumed in Merger, Expiring August 2022, Group C [Member]
Class of Stock [Line Items]
Underlying shares (in shares)47,995
Exercise price (in dollars per share) | $ / shares $ 150
Warrants Not Assumed in Merger, Expiring August 2022, Group D [Member]
Class of Stock [Line Items]
Underlying shares (in shares)9,101
Exercise price (in dollars per share) | $ / shares $ 7.50
Warrants Not Assumed In Merger, Expiring August 2022 Group E [Member]
Class of Stock [Line Items]
Underlying shares (in shares)16,664
Exercise price (in dollars per share) | $ / shares $ 2.25
Warrants Not Assumed In Merger, Expiring August2022 Group F [Member]
Class of Stock [Line Items]
Underlying shares (in shares)7,335
Exercise price (in dollars per share) | $ / shares $ 2.25
Warrants Not Assumed in Merger, Expiring October 2022 Group A [Member]
Class of Stock [Line Items]
Underlying shares (in shares)666
Exercise price (in dollars per share) | $ / shares $ 2.25
Warrants Not Assumed in Merger, Expiring May 2023 [Member]
Class of Stock [Line Items]
Exercise price (in dollars per share) | $ / shares $ 2.25
Warrants Not Assumed in Merger, Expiring October 2022 Group B [Member]
Class of Stock [Line Items]
Underlying shares (in shares)7,207
Exercise price (in dollars per share) | $ / shares $ 112.50
Warrants Not Assumed In Merger, Expiring April 2023 Group A [Member]
Class of Stock [Line Items]
Underlying shares (in shares)69,964
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed In Merger, Expiring April 2023 Group B [Member]
Class of Stock [Line Items]
Underlying shares (in shares)121,552
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed in Merger, Expiring October 2022 Group C [Member]
Class of Stock [Line Items]
Underlying shares (in shares)15,466
Exercise price (in dollars per share) | $ / shares $ 11.25
Warrants Not Assumed In Merger, Expiring July 2023 Group A [Member]
Class of Stock [Line Items]
Underlying shares (in shares)14,671
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed In Merger, Expiring July 2023 Group B [Member]
Class of Stock [Line Items]
Underlying shares (in shares)14,672
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed In Merger, Expiring August 2023 Group A [Member]
Class of Stock [Line Items]
Underlying shares (in shares)36,334
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed In Merger, Expiring August 2023 Group B [Member]
Class of Stock [Line Items]
Underlying shares (in shares)36,334
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed In Merger, Expiring September 2023 Group A [Member]
Class of Stock [Line Items]
Underlying shares (in shares)19,816
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed In Merger, Expiring September 2023 Group B [Member]
Class of Stock [Line Items]
Underlying shares (in shares)20,903
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed In Merger, Expiring November 2023 [Member]
Class of Stock [Line Items]
Underlying shares (in shares)75,788
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed In Merger, Expiring December 2023 [Member]
Class of Stock [Line Items]
Underlying shares (in shares)51,282
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed In Merger, Expiring April 2024 [Member]
Class of Stock [Line Items]
Underlying shares (in shares)147,472
Exercise price (in dollars per share) | $ / shares $ 5.40
Warrants Not Assumed In Merger, Expiring May 2024 [Member]
Class of Stock [Line Items]
Underlying shares (in shares)154,343
Exercise price (in dollars per share) | $ / shares $ 9.56
2016 Warrant Liability [Member]
Class of Stock [Line Items]
Warrants outstanding (in shares)357

STOCKHOLDERS' EQUITY (Offering

STOCKHOLDERS' EQUITY (Offering Warrants) (Details) - USD ($)1 Months Ended6 Months Ended
Apr. 30, 2018Feb. 28, 2018Aug. 31, 2017Jun. 30, 2019Jun. 30, 2018Nov. 30, 2017
Class of Stock [Line Items]
Warrants exercised20,000
Offering Warrants
Class of Stock [Line Items]
Stock rights issued (in shares)178,666
Exercise price (in dollars per share) $ 4.50 $ 15.60 $ 45 $ 11.25 $ 21
Class of warrant or right, term5 years
Warrants exercised6,800 141,400
Proceeds from issuance of warrants $ 15,000 $ 771,000
Intrinsic value of warrants exercisable $ 36,000 $ 406,000
Offering Warrants | Deemed Dividend E
Class of Stock [Line Items]
Deemed dividend $ 62,000
Offering Warrants | Deemed Dividend L
Class of Stock [Line Items]
Deemed dividend $ 63,000

STOCKHOLDERS' EQUITY (Note Conv

STOCKHOLDERS' EQUITY (Note Conversion Warrants) (Details) - USD ($)Feb. 12, 2019Apr. 30, 2018Jul. 31, 2017Jun. 30, 2019Jun. 30, 2018Aug. 31, 2017
Class of Stock [Line Items]
Conversion of debt into stock $ 1,900,000
Conversion of convertible notes into common stock (in shares)120,983
2018 Inducement Agreement
Class of Stock [Line Items]
Deemed dividend $ 3,848,000
2018 Inducement Agreement | Deemed Dividend G
Class of Stock [Line Items]
Deemed dividend5,000
2018 Inducement Agreement | Note Conversion Warrants | Deemed Dividend G
Class of Stock [Line Items]
Deemed dividend $ 5,000
2018 Purchase Agreement | Deemed Dividend J
Class of Stock [Line Items]
Deemed dividend58,000
2018 Purchase Agreement | Deemed Dividend F
Class of Stock [Line Items]
Deemed dividend8,000
2018 Purchase Agreement | Note Conversion Warrants | Deemed Dividend F
Class of Stock [Line Items]
Deemed dividend $ 8,000
2018 Note Agreement
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 4.50
2018 Note Agreement | Deemed Dividend K
Class of Stock [Line Items]
Deemed dividend216,000
2018 Note Agreement | Deemed Dividend L
Class of Stock [Line Items]
Deemed dividend63,000
2018 Note Agreement | Deemed Dividend M
Class of Stock [Line Items]
Deemed dividend $ 10,000 $ 10,000
Common Stock | Note Conversion Warrants
Class of Stock [Line Items]
Conversion of convertible notes into common stock (in shares)23,999
Exercise price (in dollars per share) $ 21 $ 45
Common Stock | 2018 Inducement Agreement | Note Conversion Warrants
Class of Stock [Line Items]
Exercise price (in dollars per share)11.25
Common Stock | 2018 Purchase Agreement | Note Conversion Warrants
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 15.60

STOCKHOLDERS' EQUITY (Convertib

STOCKHOLDERS' EQUITY (Convertible Promissory Note Warrants) (Details) - USD ($)1 Months Ended6 Months Ended
Apr. 30, 2018Jun. 30, 2019Jun. 30, 2018Feb. 28, 2018Aug. 31, 2017
Convertible Promissory Note Warrants
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 21 $ 45
2018 Inducement Agreement
Class of Stock [Line Items]
Deemed dividend $ 3,848,000
2018 Inducement Agreement | Convertible Promissory Note Warrants
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 11.25
2018 Purchase Agreement | Convertible Promissory Note Warrants
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 15.60
2018 Note Agreement
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 4.50
2018 Note Agreement | Deemed Dividend N
Class of Stock [Line Items]
Deemed dividend $ 1,000
Maximum | 2018 Inducement Agreement | Convertible Promissory Note Warrants | Deemed Dividend I
Class of Stock [Line Items]
Deemed dividend $ 1,000
Maximum | 2018 Purchase Agreement | Convertible Promissory Note Warrants | Deemed Dividend H
Class of Stock [Line Items]
Deemed dividend $ 1,000

STOCKHOLDERS' EQUITY (Series _2

STOCKHOLDERS' EQUITY (Series C Warrants) (Details) - USD ($)1 Months Ended3 Months Ended6 Months Ended
Apr. 30, 2018Feb. 28, 2018Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Nov. 30, 2017
Class of Stock [Line Items]
Underlying shares (in shares)909,189 909,189
Warrants exercised20,000
Series C Warrants [Member]
Class of Stock [Line Items]
Underlying shares (in shares)130,857
Exercise price (in dollars per share) $ 24.45
Warrants and Rights Outstanding, Term5 years
Percentage of outstanding shares owned threshold prior to exercise of warrants4.99%
Percentage of outstanding shares owned threshold after exercise of warrants9.99%
2018 Inducement Agreement
Class of Stock [Line Items]
Deemed dividend $ 3,848,000
2018 Purchase Agreement | Deemed Dividend J
Class of Stock [Line Items]
Deemed dividend58,000
2018 Purchase Agreement | Series C Warrants [Member]
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 15.60 $ 11.25 $ 11.25
2018 Purchase Agreement | Series C Warrants [Member] | Deemed Dividend J
Class of Stock [Line Items]
Deemed dividend $ 58,000
2018 Note Agreement
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 4.50
2018 Note Agreement | Deemed Dividend O
Class of Stock [Line Items]
Deemed dividend $ 45,000
2018 Note Agreement | Series C Warrants [Member]
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 4.50
Warrants exercised25,037 71,333 25,037 71,333
Proceeds from issuance of warrants $ 56,000 $ 321,000 $ 56,000 $ 321,000
Intrinsic value of warrants exercised in period $ 43,000 $ 202,000
2018 Note Agreement | Series C Warrants [Member] | Deemed Dividend O
Class of Stock [Line Items]
Deemed dividend $ 45,000

STOCKHOLDERS' EQUITY (Remaining

STOCKHOLDERS' EQUITY (Remaining Warrants) (Details) - USD ($)Apr. 20, 2018Apr. 30, 2018Jun. 30, 2019Dec. 31, 2018Sep. 30, 2018Jun. 30, 2019May 31, 2019Apr. 30, 2019Feb. 28, 2018Dec. 31, 2017
Class of Stock [Line Items]
Class of warrant, number of securities called by warrants909,189 909,189
Loss on modification of warrants $ (1,128,000) $ (1,128,000)
Warrants exercised20,000
Creditor Warrants Relating to Secured Debt [Member]
Class of Stock [Line Items]
Class of warrant, number of securities called by warrants7,207 7,207
Exercise price (in dollars per share) $ 112.50
April 2018 Warrants
Class of Stock [Line Items]
Stock rights issued (in shares)243,224
Exercise price (in dollars per share) $ 11.25 $ 7.50
Warrants, fair value $ 1,100,000
Warrants exercised51,708 51,708
Proceeds from issuance of warrants $ 279,000 $ 279,000
Intrinsic value of warrants exercisable128,000 128,000
April 2018 Warrants, First Half
Class of Stock [Line Items]
Class of warrant or right, term5 years5 years
Amended Warrants
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 5.40
Warrants term5 years
Loss on modification of warrants1,100,000
Amended April 2018 Warrants
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 5.40
Warrants term5 years
Loss on modification of warrants700,000 700,000
Amended Q3 2018 Warrants [Member]
Class of Stock [Line Items]
Loss on modification of warrants $ 400,000 $ 400,000
April 2018 Warrants, Second Half
Class of Stock [Line Items]
Class of warrant or right, term1 year1 year
Warrants term1 year
Advisor Warrants
Class of Stock [Line Items]
Stock rights issued (in shares)15,466
Quarter 3 2018 Warrants
Class of Stock [Line Items]
Stock rights issued (in shares)196,340
Exercise price (in dollars per share) $ 5.40
Warrants term5 years
Warrants exercised53,610 53,610
Proceeds from issuance of warrants $ 289,000 $ 289,000
Intrinsic value of warrants exercisable $ 133,382 $ 133,382
Quarter 3 2018 Warrants | Convertible Debt [Member]
Class of Stock [Line Items]
Class of warrant, number of securities called by warrants196,340
Exercise price (in dollars per share) $ 11.25
Warrants, fair value $ 700,000
Quarter 3 2018 Warrants, First Half [Member] | Convertible Debt [Member]
Class of Stock [Line Items]
Class of warrant or right, term5 years
Quarter 3 2018 Warrants, Second Half [Member] | Convertible Debt [Member]
Class of Stock [Line Items]
Class of warrant or right, term1 year
Warrants Not Assumed In Merger, Expiring November 2023 [Member]
Class of Stock [Line Items]
Class of warrant, number of securities called by warrants75,788 75,788
Exercise price (in dollars per share) $ 5.40 $ 5.40
Warrants Not Assumed In Merger, Expiring December 2023 [Member]
Class of Stock [Line Items]
Class of warrant, number of securities called by warrants51,282 51,282
Exercise price (in dollars per share) $ 5.40 $ 5.40
Quarter 4 2018 Warrants
Class of Stock [Line Items]
Stock rights issued (in shares)300,115
Warrants exercised173,045 173,045
Proceeds from issuance of warrants $ 934,000 $ 934,000
Intrinsic value of warrants exercisable $ 489,000 $ 489,000
Quarter 4 2018 Warrants | Convertible Debt [Member]
Class of Stock [Line Items]
Class of warrant, number of securities called by warrants300,115
Exercise price (in dollars per share) $ 5.40
Warrants, fair value $ 700,000
Warrants term5 years
April 2019 Bridge Notes | Convertible Debt [Member]
Class of Stock [Line Items]
Class of warrant, number of securities called by warrants147,472
Exercise price (in dollars per share) $ 5.40
Warrants, fair value $ 1,000,000
Warrants term5 years
May 2019 Warrants | Convertible Debt [Member]
Class of Stock [Line Items]
Class of warrant, number of securities called by warrants154,343
Exercise price (in dollars per share) $ 5.40
Warrants, fair value $ 900,000
Warrants term5 years
2018 Note Agreement
Class of Stock [Line Items]
Exercise price (in dollars per share) $ 4.50
2018 Note Agreement | Advisor Warrants
Class of Stock [Line Items]
Stock rights issued (in shares)15,466
Exercise price (in dollars per share) $ 11.25
Warrants, fair value $ 100,000

STOCKHOLDERS; EQUITY (Deemed Di

STOCKHOLDERS; EQUITY (Deemed Dividends) (Details) - USD ($)1 Months Ended6 Months Ended
Apr. 30, 2018Jun. 30, 2018
2018 Purchase Agreement | Deemed Dividend A
Class of Stock [Line Items]
Amount Recorded $ 1,358,000
2018 Purchase Agreement | Deemed Dividend E
Class of Stock [Line Items]
Amount Recorded62,000
2018 Purchase Agreement | Deemed Dividend J
Class of Stock [Line Items]
Amount Recorded58,000
2018 Purchase Agreement | Deemed Dividend F
Class of Stock [Line Items]
Amount Recorded8,000
2018 Purchase Agreement | Deemed Dividend C
Class of Stock [Line Items]
Amount Recorded829,000
2018 Inducement Agreement
Class of Stock [Line Items]
Amount Recorded3,848,000
2018 Inducement Agreement | Deemed Dividend G
Class of Stock [Line Items]
Amount Recorded5,000
2018 Inducement Agreement | Deemed Dividend B
Class of Stock [Line Items]
Amount Recorded40,000
2018 Inducement Agreement | Deemed Dividend D
Class of Stock [Line Items]
Amount Recorded1,154,000
2018 Note Agreement | Deemed Dividend K
Class of Stock [Line Items]
Amount Recorded216,000
2018 Note Agreement | Deemed Dividend L
Class of Stock [Line Items]
Amount Recorded63,000
2018 Note Agreement | Deemed Dividend O
Class of Stock [Line Items]
Amount Recorded45,000
2018 Note Agreement | Deemed Dividend M
Class of Stock [Line Items]
Amount Recorded $ 10,000 $ 10,000
2018 Note Agreement | Deemed Dividend N
Class of Stock [Line Items]
Amount Recorded $ 1,000

FAIR VALUE (Narratives) (Detail

FAIR VALUE (Narratives) (Details) $ in Thousands1 Months Ended3 Months Ended6 Months Ended
Apr. 30, 2018USD ($)sharesJun. 30, 2019USD ($)YsharesDec. 31, 2018USD ($)YsharesSep. 30, 2018USD ($)sharesJun. 30, 2018USD ($)Jun. 30, 2019USD ($)YsharesMay 31, 2019sharesApr. 30, 2019shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt settlement $ 2,364 $ 456 $ 2,364
Derivative liability from debt discount $ 400 $ 400
Derivative asset (liability) $ 62 143
Bridge Notes Redemption Feature [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset (liability)30 143
Conversion Option [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset (liability) $ 32
April 2018 Bridge Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities $ 300
Derivative liability from debt discount $ 100
2016 Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants outstanding (in shares) | shares357 357
(Decrease) in warrant liability $ (400)
Warrants canceled in settlement agreement | shares1,347
Debt settlement $ 456
Measurement Input, Price Volatility [Member] | 2016 Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input141 141
Measurement Input, Risk Free Interest Rate [Member] | 2016 Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input1.841.84
Measurement Input, Expected Term [Member] | 2016 Warrant Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input | Y1.501.50
April 2018 Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock rights issued (in shares) | shares243,224
Advisor Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock rights issued (in shares) | shares15,466
Quarter 3 2018 Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock rights issued (in shares) | shares196,340
Quarter 4 2018 Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stock rights issued (in shares) | shares300,115
Quarter 4 2018 Warrants | Measurement Input, Price Volatility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input176
Quarter 4 2018 Warrants | Measurement Input, Risk Free Interest Rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input2.48
Quarter 4 2018 Warrants | Measurement Input, Expected Term [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input | Y2
April 2019 Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants outstanding (in shares) | shares147,472
May 2019 Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants outstanding (in shares) | shares154,343
Minimum | April 2018 Warrants | Measurement Input, Price Volatility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input147 147
Minimum | April 2018 Warrants | Measurement Input, Risk Free Interest Rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input1.711.71
Minimum | April 2018 Warrants | Measurement Input, Expected Term [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input | Y2.812.81
Maximum | April 2018 Warrants | Measurement Input, Price Volatility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input173 173
Maximum | April 2018 Warrants | Measurement Input, Risk Free Interest Rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input1.761.76
Maximum | April 2018 Warrants | Measurement Input, Expected Term [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants and Rights Outstanding, Measurement Input | Y4.884.88

FAIR VALUE (Schedule of Changes

FAIR VALUE (Schedule of Changes in Fair Value of Liability) (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance $ 892 $ 124 $ 1,132 $ 841
Additions1,858 1,205 1,858 1,205
Total (gains) or losses:
Revaluation recognized in earnings822 (323)582 (584)
Modification recognized in earnings1,128 1,128
Deductions - warrant liability settlement(2,364)(456)(2,364)
Balance at end of period2,336 1,006 2,336 1,006
2016 Warrant Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance93 124 116 841
Total (gains) or losses:
Revaluation recognized in earnings(7)(30)(261)
Deductions - warrant liability settlement(456)
Balance at end of period86 124 86 124
2018 Warrant Liabilities [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance799 1,016
Additions1,858 1,205 1,858 1,205
Total (gains) or losses:
Revaluation recognized in earnings829 (323)612 (323)
Modification recognized in earnings1,128 1,128
Deductions - warrant liability settlement(2,364)(2,364)
Balance at end of period $ 2,250 $ 882 $ 2,250 $ 882

FAIR VALUE (Schedule of Chang_2

FAIR VALUE (Schedule of Changes in Fair Value of Derivative Liabilities) (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability beginning balance $ 62
Additions $ 142 $ 142
Deductions $ (438)(477)
Total (gains) or losses:
Revaluation recognized in earnings438 1 415 1
Derivative liability ending balance143 143
Bridge Notes Redemption Feature [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability beginning balance30
Additions142 142
Deductions(438)(438)
Total (gains) or losses:
Revaluation recognized in earnings $ 438 1 408 1
Derivative liability ending balance $ 143 $ 143
Conversion Option [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative liability beginning balance32
Deductions(39)
Total (gains) or losses:
Revaluation recognized in earnings $ 7

EQUITY INCENTIVE PLAN (Narrativ

EQUITY INCENTIVE PLAN (Narrative) (Details) - USD ($) $ in Thousands1 Months Ended3 Months Ended6 Months Ended
Jan. 31, 2018Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation $ 100 $ 100 $ 300 $ 200
Unrecognized compensation expense related to unvested stock awards2,200 $ 2,200
Unvested stock options, unrecognized compensation expense weighted average recognition period2 years 6 months
Accrued expenses $ 1,325 $ 1,325 $ 1,583
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, expected to vest, outstanding (in shares)400,693 400,693
Stock options, expected to vest, outstanding, aggregate intrinsic value $ 200 $ 200
Stock options, expected to vest remaining contractual term9 years 2 months 12 days
Equity Incentive Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized359,300
Number of shares authorized403,744
Maximum number of shares per employee66,666
Award plan, percentage of outstanding stock maximum5.00%
Equity Incentive Plan 2017 [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance44,444
Plan expiration dateJun. 5,
2027

EQUITY INCENTIVE PLAN (Summary

EQUITY INCENTIVE PLAN (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Number of Options
Outstanding at beginning of period (in shares)224,895
Granted (in shares)285,364
Forfeited (in shares)(9,017)
Outstanding at end of period (in shares)501,242 501,242
Exercisable at end of period (in shares)99,047 99,047
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share) $ 15.90
Granted (in dollars per share)2.37
Forfeited (in dollars per share)6.92
Outstanding at end of period (in dollars per share) $ 8.29 8.29
Exercisable at end of period (in dollars per share) $ 20.22 $ 20.22
Stock-based compensation $ 0.1 $ 0.1 $ 0.3 $ 0.2
Stock Options [Member]
Number of Options
Granted (in shares)219,101
Forfeited (in shares)(7,530)
Weighted-Average Exercise Price
Granted (in dollars per share) $ 10.65
Forfeited (in dollars per share) $ 42.60
Stock Options [Member] | Performance-based milestone vesting
Number of Options
Granted (in shares)100,000

SALES SERVICE REVENUE, NET AN_3

SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE (Narrative) (Details) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Concentration Risk [Line Items]
Deferred revenue $ 19 $ 49

SALES SERVICE REVENUE, NET AN_4

SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE (Schedule of Net Revenues) (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments $ 1,199 $ 959 $ 2,116 $ 1,755
Service revenue, net [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments1,195 899 2,105 1,690
Diagnostic Testing [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments921 531 1,678 834
Biomarker Testing and Clinical Project Services [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments274 368 427 856
Medicaid [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments9 11 12 23
Medicaid [Member] | Diagnostic Testing [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments9 11 12 23
Medicare [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments450 281 844 415
Medicare [Member] | Diagnostic Testing [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments450 281 844 415
Self-Pay [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments11 20 15 46
Self-Pay [Member] | Diagnostic Testing [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments11 20 15 46
Third Party Payer [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments451 219 807 350
Third Party Payer [Member] | Diagnostic Testing [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments451 219 807 350
Contract Diagnostic Services [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments274 368 427 856
Contract Diagnostic Services [Member] | Biomarker Testing and Clinical Project Services [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments274 368 $ 427 $ 856
Clinical Research Grants and Other [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments $ 4 $ 60

SALES SERVICE REVENUE, NET AN_5

SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE (Schedule of Gross to Net Sales Adjustments) (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Gross revenue $ 2,339 $ 1,297 $ 3,917 $ 2,285
Contractual allowance and adjustments(1,140)(338)(1,801)(530)
Service revenue, net1,199 959 2,116 1,755
Medicaid [Member]
Disaggregation of Revenue [Line Items]
Gross revenue12 26 15 41
Contractual allowance and adjustments(3)(15)(3)(18)
Service revenue, net9 11 12 23
Medicare [Member]
Disaggregation of Revenue [Line Items]
Gross revenue467 292 861 429
Contractual allowance and adjustments(17)(11)(17)(14)
Service revenue, net450 281 844 415
Self-Pay [Member]
Disaggregation of Revenue [Line Items]
Gross revenue11 20 15 46
Service revenue, net11 20 15 46
Third Party Payer [Member]
Disaggregation of Revenue [Line Items]
Gross revenue1,571 531 2,588 848
Contractual allowance and adjustments(1,120)(312)(1,781)(498)
Service revenue, net451 219 807 350
Contract Diagnostic Services [Member]
Disaggregation of Revenue [Line Items]
Gross revenue274 368 427 856
Service revenue, net274 368 427 856
Clinical Research Grants and Other [Member]
Disaggregation of Revenue [Line Items]
Service revenue, net4 60
Service revenue, net [Member]
Disaggregation of Revenue [Line Items]
Gross revenue2,335 1,237 3,906 2,220
Contractual allowance and adjustments(1,140)(338)(1,801)(530)
Service revenue, net1,195 899 2,105 1,690
Clinical Research Grants and Other [Member]
Disaggregation of Revenue [Line Items]
Gross revenue4 60 11 65
Service revenue, net4 60 11 65
Clinical research grants [Member]
Disaggregation of Revenue [Line Items]
Service revenue, net62 62
Other [Member]
Disaggregation of Revenue [Line Items]
Service revenue, net $ 4 $ (2) $ 11 $ 3

SALES SERVICE REVENUE, NET AN_6

SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE (Schedule of Sales, Net of Collection Allowance) (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments $ 1,199 $ 959 $ 2,116 $ 1,755
less allowance for doubtful accounts(257)(142)(461)(226)
Net sales942 817 1,655 1,529
Medicaid [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments9 11 12 23
less allowance for doubtful accounts(9)(12)(12)(23)
Net sales(1)
Medicare [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments450 281 844 415
less allowance for doubtful accounts(68)(42)(127)(62)
Net sales382 239 717 353
Self-Pay [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments11 20 15 46
Net sales11 20 15 46
Third Party Payer [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments451 219 807 350
less allowance for doubtful accounts(180)(88)(322)(141)
Net sales271 131 485 209
Contract Diagnostic Services [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments274 368 427 856
Net sales274 368 427 856
Clinical Research Grants and Other [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments4 60
Net sales4 60
Service revenue, net [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments1,195 899 2,105 1,690
less allowance for doubtful accounts(257)(142)(461)(226)
Net sales938 757 1,644 1,464
Clinical Research Grants and Other [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments4 60 11 65
Net sales11 65
Clinical research grants [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments62 62
Other [Member]
Disaggregation of Revenue [Line Items]
Revenue, net of contractual allowances and adjustments $ 4 $ (2) $ 11 $ 3

SALES SERVICE REVENUE, NET AN_7

SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE (Schedule of Receivables) (Details) - USD ($) $ in ThousandsJun. 30, 2019Dec. 31, 2018
Accounts receivable, gross $ 3,054 $ 2,398
Less allowance for doubtful accounts(2,171)(1,708)
Accounts receivable, net883 690
Medicaid [Member]
Accounts receivable, gross90 82
Medicare [Member]
Accounts receivable, gross770 633
Self-Pay [Member]
Accounts receivable, gross73 108
Third Party Payer [Member]
Accounts receivable, gross1,852 1,382
Contract Diagnostic Services [Member]
Accounts receivable, gross269 193
Clinical Research Grants and Other [Member]
Accounts receivable, gross $ 0 $ 0

SALES SERVICE REVENUE, NET AN_8

SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE (Schedule of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018
Allowance for doubtful accounts, Beginning balance $ (1,708)
less allowance for doubtful accounts $ (257) $ (142)(461) $ (226)
Allowances for doubtful accounts(1,199)(959)(2,116)(1,755)
Bad debt expense(2)
Total charges(463)
Allowance for doubtful accounts, Ending balance(2,171)(2,171)
Medicaid [Member]
less allowance for doubtful accounts(9)(12)(12)(23)
Allowances for doubtful accounts(9)(11)(12)(23)
Medicare [Member]
less allowance for doubtful accounts(68)(42)(127)(62)
Allowances for doubtful accounts(450)(281)(844)(415)
Self-Pay [Member]
Allowances for doubtful accounts(11)(20)(15)(46)
Third Party Payer [Member]
less allowance for doubtful accounts(180)(88)(322)(141)
Allowances for doubtful accounts(451)(219)(807)(350)
Contract Diagnostic Services [Member]
Allowances for doubtful accounts(274)(368) $ (427) $ (856)
Clinical Research Grants and Other [Member]
Allowances for doubtful accounts $ (4) $ (60)

SALES SERVICE REVENUE, NET AN_9

SALES SERVICE REVENUE, NET AND ACCOUNTS RECEIVABLE (Schedule of Customer Revenue and Accounts Receivable Concentrations) (Detail) - Customer Concentration Risk [Member]3 Months Ended6 Months Ended12 Months Ended
Jun. 30, 2019Jun. 30, 2018Jun. 30, 2019Jun. 30, 2018Dec. 31, 2018
Sales Revenue, Net [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration risk, percentage29.00%40.00%26.00%44.00%
Sales Revenue, Net [Member] | Customer B [Member]
Concentration Risk [Line Items]
Concentration risk, percentage11.00%
Accounts Receivable [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration risk, percentage28.00%23.00%