Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 12, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NeuroMetrix, Inc. | |
Entity Central Index Key | 0001289850 | |
Trading Symbol | NURO | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,781,755 | |
Class of Warrant or Right, Outstanding | 454,781 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 4,958,058 | $ 6,780,429 |
Accounts receivable, net | 726,670 | 1,082,957 |
Inventories | 2,063,431 | 2,861,864 |
Prepaid expenses and other current assets | 1,101,154 | 860,915 |
Total current assets | 8,849,313 | 11,586,165 |
Fixed assets, net | 289,472 | 407,339 |
Operating Lease, Right-of-Use Asset | 1,645,668 | 1,968,062 |
Other long-term assets | 29,824 | 30,314 |
Total assets | 10,814,277 | 13,991,880 |
Current liabilities: | ||
Accounts payable | 1,017,094 | 1,298,084 |
Accrued expenses | 3,081,192 | 2,236,633 |
Accrued Sales Return provisions | 741,607 | 1,101,658 |
Deferred Collaboration Income | 0 | 1,956,522 |
Total current liabilities | 4,839,893 | 6,592,897 |
Operating Lease, Liability, Noncurrent | 1,116,734 | 1,301,172 |
Total liabilities | 5,956,627 | 7,894,069 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.0001 par value; 100,000,000 shares authorized at June 30, 2019 and December 31, 2018; 9,781,755 and 7,380,463 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 978 | 738 |
Additional paid-in capital | 197,184,936 | 197,113,646 |
Accumulated deficit | (192,328,275) | (191,016,591) |
Total stockholders’ equity | 4,857,650 | 6,097,811 |
Total liabilities and stockholders’ equity | 10,814,277 | 13,991,880 |
Non-Convertible Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Convertible preferred stock | ||
Stockholders’ equity: | ||
Preferred stock | 11 | 18 |
Total stockholders’ equity | $ 11 | $ 18 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Common Stock, Shares, Outstanding | 9,781,755 | 7,380,463 |
Common Stock, Shares, Issued | 9,781,755 | 7,380,463 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 2,354,683 | $ 3,751,568 | ||
Other Income | 18,520 | 11,014 | $ 35,333 | $ 22,279 |
Other Operating Income | 1,400,338 | 3,761,013 | 7,152,000 | 8,527,983 |
Net income (loss) | (3,362,191) | 573,928 | (1,311,684) | 1,740,180 |
Loss from operations | (4,762,529) | (3,187,085) | (8,463,684) | (6,787,803) |
Collaboration Income | 1,381,818 | 3,749,999 | 7,116,667 | 8,505,704 |
Net income (loss) applicable to common stockholders: | ||||
Net income (loss) applicable to common stockholders | $ (3,362,191) | $ 573,928 | $ (1,311,684) | $ 1,740,180 |
Earnings Per Share, Basic | $ (0.37) | $ 0.08 | $ (0.16) | $ 0.25 |
Earnings Per Share, Diluted | $ (0.37) | $ 0.04 | $ (0.16) | $ 0.13 |
Weighted Average Number of Shares Outstanding, Basic | 9,048,235 | 7,330,479 | 8,396,249 | 6,839,778 |
Operating expenses: | ||||
Research and development | $ 1,034,921 | $ 1,616,863 | $ 1,890,002 | $ 2,896,427 |
Sales and marketing | 1,373,949 | 2,200,852 | 3,399,237 | 4,705,593 |
General and administrative | 1,564,555 | 1,170,634 | 3,184,045 | 2,974,777 |
Total operating expenses | 3,973,425 | 4,988,349 | 8,473,284 | 10,576,797 |
Revenues | 5,477,618 | 8,694,558 | ||
Gross profit | (789,104) | 1,801,264 | 9,600 | 3,788,994 |
Cost of revenues | $ 3,143,787 | $ 1,950,304 | $ 5,468,018 | $ 4,905,564 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ (1,311,684) | $ 1,740,180 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 107,494 | 140,989 |
Stock-based compensation | 64,026 | 371,917 |
Inventory Write-down | 2,595,884 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 356,287 | 1,288,332 |
Inventories | (1,207,451) | (281,617) |
Prepaid expenses and other current and long-term assets | (239,749) | 609,358 |
Accounts payable | (287,260) | 66,480 |
Accrued expenses | 416,745 | (93,651) |
Increase (Decrease) in Accrued Product Returns | (360,051) | (645,938) |
Increase (Decrease) in Contract with Customer, Liability | (1,956,522) | 0 |
Net Cash Provided by (Used in) Operating Activities | (1,822,281) | 3,196,050 |
Cash flows from investing activities: | ||
Purchases of fixed assets | (7,587) | (130,816) |
Net Cash Provided by (Used in) Investing Activities | (7,587) | (130,816) |
Cash flows from financing activities: | ||
Net proceeds from issuance of stock and warrants | 7,497 | 0 |
Net Cash Provided by (Used in) Financing Activities | 7,497 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (1,822,371) | 3,065,234 |
Cash and cash equivalents, end of period | 4,958,058 | |
Supplemental disclosure of cash flow information: | ||
Common stock issued to settle employee incentive compensation obligation | 0 | 294,264 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 4,958,058 | $ 7,108,915 |
Equity Rollforward Statement
Equity Rollforward Statement - USD ($) | Total | Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Management Incentive [Member] | Management Incentive [Member]Common Stock [Member] | Management Incentive [Member]Additional Paid-in Capital [Member] |
Stockholders' Equity Attributable to Parent | $ 5,017,389 | $ 30 | $ 271 | $ 196,355,142 | $ (191,338,054) | |||
Shares, Outstanding | 29,479.98 | 2,706,066 | ||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 371,917 | 371,917 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (11,666.35) | (4,435,874) | ||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ (12) | $ (444) | (432) | |||||
Net Income (Loss) Attributable to Parent | 1,740,180 | 1,740,180 | ||||||
Stockholders' Equity Attributable to Parent | 7,721,608 | $ 18 | $ 736 | 197,020,870 | (189,300,016) | |||
Common Stock, Shares, Issued | 214,791 | 214,791 | ||||||
Common Stock, Value, Issued | $ 294,264 | $ 21 | $ 294,243 | |||||
Shares, Outstanding | 17,813.63 | 7,356,731 | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 297,858 | 297,858 | ||||||
Stockholders' Equity Attributable to Parent | $ 6,097,811 | $ 18 | $ 738 | 197,113,646 | (191,016,591) | |||
Common Stock, Shares, Issued | 7,380,463 | |||||||
Common Stock, Value, Issued | $ 738 | |||||||
Shares, Outstanding | 17,513.63 | 7,380,463 | ||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 64,026 | 64,026 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (6,258.90) | (2,379,810) | ||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ (7) | $ (238) | (231) | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 21,482 | |||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 7,497 | $ 2 | 7,495 | |||||
Net Income (Loss) Attributable to Parent | (1,311,684) | (1,311,684) | ||||||
Stockholders' Equity Attributable to Parent | $ 4,857,650 | $ 11 | $ 978 | $ 197,184,936 | $ (192,328,275) | |||
Common Stock, Shares, Issued | 9,781,755 | |||||||
Common Stock, Value, Issued | $ 978 | |||||||
Shares, Outstanding | 11,254.73 | 9,781,755 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Our Business-An Overview NeuroMetrix, Inc., or the Company, is a commercial stage, innovation driven healthcare company combining neurostimulation and digital medicine to address chronic health conditions including chronic pain, sleep disorders, and diabetes. The Company has two primary products. Quell is an over-the-counter wearable therapeutic device for chronic pain. DPNCheck® is a rapid point-of-care test for diabetic neuropathy which is the most common long-term complication of Type 2 diabetes. In June 2019 the Company announced a business restructuring aimed at operating costs and cash preservation while continuing to focus on supporting its DPNCheck® product line, managing its existing Quell® business while evaluating alternative therapeutic applications for the core technology, maintaining its strategic collaboration with GlaxoSmithKline, and attempting to negotiate a settlement of the previously disclosed and ongoing Federal Trade Commission (FTC) investigation which is centered on Quell advertising. The restructuring involved a reduction in force, a planned consolidation of all operations in a single location, and the write-down of excess Quell inventory. In connection with the restructuring, the Company recorded in the second quarter of 2019 a restructuring charge of $2.3 million (See Note 7.). It is likely that the Company will incur future charges associated with settlement of the FTC matter; however, the amount of such charges cannot be reasonably estimated at this time (See Note 8.). In June 2019, the Company also announced that it had retained an investment bank to explore strategic alternatives to enhance shareholder value, including the potential sale or merger of the Company. The accompanying financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company has suffered recurring losses from operations and negative cash flows from operating activities. At June 30, 2019 , the Company had an accumulated deficit of $192.3 million . These factors raise substantial doubt about the Company’s ability to continue as a going concern for the one-year period from the date of issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company held cash and cash equivalents of $5.0 million as of June 30, 2019 . The Company believes that these resources, future GSK collaboration milestone payments, and the cash to be generated from future product sales will be sufficient to meet its projected operating requirements through 2019. Accordingly, the Company will need to raise additional funds to support its operating and capital needs in 2020. The Company continues to face significant challenges and uncertainties and, as a result, the Company’s available capital resources may be consumed more rapidly than currently expected due to (a) decreases in sales of the Company’s products and the uncertainty of future revenues from new products; (b) changes the Company may make to the business that affect ongoing operating expenses; (c) changes the Company may make in its business strategy; (d) regulatory developments affecting the Company’s existing products; (e) changes the Company may make in its research and development spending plans; (f) delays in the anticipated timing of achievement of GSK milestones; (g) the final outcome of the FTC civil investigative demand enforcement action involving Quell; and (h) other items affecting the Company’s forecasted level of expenditures and use of cash resources. The Company may attempt to obtain additional funding through achievement of milestones under the GSK collaboration, public or private financing, collaborative arrangements with strategic partners, or through additional credit lines or other debt financing sources to increase the funds available to fund operations. However, the Company may not be able to secure such funding in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity or debt securities to raise additional funds, its existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences and privileges senior to those of the Company’s existing stockholders. If the Company raises additional funds through collaboration, licensing or other similar arrangements, it may be necessary to relinquish valuable rights to its potential products or proprietary technologies, or grant licenses on terms that are not favorable to the Company. Without additional funds, the Company may be forced to delay, scale back or eliminate some of its sales and marketing efforts, research and development activities, or other operations and potentially delay product development in an effort to provide sufficient funds to continue its operations. If any of these events occurs, the Company’s ability to achieve its development and commercialization goals would be adversely affected. Unaudited Interim Financial Statements The accompanying unaudited balance sheet as of June 30, 2019 , unaudited statements of operations for the quarters and six months ended June 30, 2019 and 2018 , unaudited statements of changes in stockholders' equity for the six months ended June 30, 2019 and 2018 and the unaudited statements of cash flows for the six months ended June 30, 2019 and 2018 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The accompanying balance sheet as of December 31, 2018 has been derived from audited financial statements prepared at that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, the financial statements include all normal and recurring adjustments considered necessary for a fair presentation of the Company’s financial position and operating results. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or the SEC, on January 24, 2019 (File No. 001-33351), or the Company’s 2018 Form 10-K. Revenues Revenues include product sales, net of estimated returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for product transferred. Revenue is recognized when contractual performance obligations have been satisfied and control of the product has been transferred to the customer. In most cases, the Company has a single product delivery performance obligation. Accrued product returns are estimated based on historical data and evaluation of current information. Accounts receivable are recorded net of the allowance for doubtful accounts which represents the Company’s best estimate of credit losses. Allowance for doubtful accounts was $25,000 as of June 30, 2019 and December 31, 2018 . Two customers accounted for 31% and one customer accounted for 20% of total revenues in the quarters and six months ended June 30, 2019 , respectively. Two customers accounted for 24% and 29% of total revenues in the quarters and six months ended June 30, 2018, respectively. Three customers accounted for 62% and two customers accounted for 45% of accounts receivable as of June 30, 2019 and December 31, 2018 , respectively. Collaboration income Collaboration income is recognized within Other income when contractual performance obligations, outside the ordinary activities of the Company, have been satisfied and control has been transferred to a collaboration partner. Collaboration income for each performance obligation is based on the fair value of such performance obligation relative to the total fair value of all performance obligations multiplied by the overall transaction price. A deferred collaboration income liability is recorded when payments are received prior to satisfaction of performance obligations. The Company recognized Collaboration income net of costs, within Other income in the Statement of Operations of $7,116,667 and $8,505,704 , for the six months ended June 30, 2019 and 2018, respectively. Stock-based Compensation Total compensation cost related to non-vested awards not yet recognized at June 30, 2019 was $139,588 . The total compensation costs are expected to be recognized over a weighted-average period of 1.3 years. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during reporting periods. Actual results could differ from those estimates. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 required that lessees recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. The Company adopted ASU 2016-02, using the modified retrospective method, upon its effective date of January 1, 2019. The impact of adoption was an increase to long-term assets and total liabilities of approximately $1.9 million as of January 1, 2019. The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of June 30, 2019 : As reported Adjustments Amounts under prior GAAP Assets Prepaid expenses and other current assets $ 1,101,154 $ 26,895 $ 1,128,049 Total current assets $ 8,849,313 $ 26,895 $ 8,876,208 Right of use asset $ 1,645,668 $ (1,645,668 ) $ — Other long-term assets $ 29,824 $ 44,100 $ 73,924 Total assets $ 10,814,277 $ (1,574,673 ) $ 9,239,604 Liabilities Accrued expenses $ 3,081,192 $ (457,939 ) $ 2,623,253 Total current liabilities $ 4,839,893 $ (457,939 ) $ 4,381,954 Lease obligation - net of current portion $ 1,116,734 $ (1,116,734 ) $ — Total liabilities $ 5,956,627 $ (1,574,673 ) $ 4,381,954 The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of December 31, 2018: As reported Adjustments Amounts under prior GAAP Assets Prepaid expenses and other current assets $ 860,915 $ 44,852 $ 905,767 Total current assets $ 11,586,165 $ 44,852 $ 11,631,017 Right of use asset $ 1,968,062 $ (1,968,062 ) $ — Other long-term assets $ 30,314 $ 44,578 $ 74,892 Total assets $ 13,991,880 $ (1,878,632 ) $ 12,113,248 Liabilities Accrued expenses $ 2,236,633 $ (577,460 ) $ 1,659,173 Total current liabilities $ 6,592,897 $ (577,460 ) $ 6,015,437 Lease obligation - net of current portion $ 1,301,172 $ (1,301,172 ) $ — Total liabilities $ 7,894,069 $ (1,878,632 ) $ 6,015,437 Adoption of ASU 2016-02 had no impact on the Company's statements of operations, statements of changes in stockholders' equity and statements of cash flows. |
Comprehensive Loss
Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Comprehensive Loss | Comprehensive Income (Loss) For the quarters and six months ended June 30, 2019 and 2018 , the Company had no components of other comprehensive income (loss) other than net income (loss) itself. |
Net Loss Per Common Share
Net Loss Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | 3. Net Income (Loss) Per Common Share Basic and dilutive net income (loss) per common share were as follows: Quarters Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income (loss) applicable to common stockholders $ (3,362,191 ) $ 573,928 $ (1,311,684 ) $ 1,740,180 Weighted average number of common shares outstanding, basic 9,048,235 7,330,479 8,396,249 6,839,778 Dilutive convertible preferred stock — 6,584,674 — 6,980,585 Weighted average number of common shares outstanding, dilutive 9,048,235 13,915,153 8,396,249 13,820,363 Net income (loss) per common share applicable to common stockholders, basic $ (0.37 ) $ 0.08 $ (0.16 ) $ 0.25 Net income (loss) per common share applicable to common stockholders, diluted $ (0.37 ) $ 0.04 $ (0.16 ) $ 0.13 Shares underlying the following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net (loss) income per common share because their effect was anti-dilutive for each of the periods presented: Quarters Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Options 482,656 466,025 485,559 401,778 Warrants 459,375 459,375 459,375 459,375 Convertible preferred stock 4,915,974 — 5,567,960 — Total 5,858,005 925,400 6,512,894 861,153 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Quarters Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income (loss) applicable to common stockholders $ (3,362,191 ) $ 573,928 $ (1,311,684 ) $ 1,740,180 Weighted average number of common shares outstanding, basic 9,048,235 7,330,479 8,396,249 6,839,778 Dilutive convertible preferred stock — 6,584,674 — 6,980,585 Weighted average number of common shares outstanding, dilutive 9,048,235 13,915,153 8,396,249 13,820,363 Net income (loss) per common share applicable to common stockholders, basic $ (0.37 ) $ 0.08 $ (0.16 ) $ 0.25 Net income (loss) per common share applicable to common stockholders, diluted $ (0.37 ) $ 0.04 $ (0.16 ) $ 0.13 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: June 30, 2019 December 31, 2018 Purchased components $ 1,226,434 $ 1,767,674 Finished goods 836,997 1,094,190 $ 2,063,431 $ 2,861,864 As of June 30, 2019 inventory reserves for excess stock totaled $2,181,819 with $2,030,000 allocated to purchased components and $151,819 allocated to finished goods. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following: June 30, 2019 December 31, 2018 Lease obligation, current portion $ 582,940 $ 577,460 Supplier excess commitments 590,000 160,000 Professional services 566,000 391,000 Technology fees 450,000 450,000 Advertising and promotion 380,000 171,000 Compensation expense 162,990 223,756 Warranty reserve 103,000 129,837 Relocation costs 100,000 — Other 146,262 133,580 $ 3,081,192 $ 2,236,633 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis for the periods presented and indicates the fair value hierarchy of the valuation techniques it utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates, and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Fair Value Measurements at June 30, 2019 Using June 30, 2019 Quoted Prices in Significant Other Significant Assets: Cash equivalents $ 3,004,775 $ 3,004,775 $ — $ — Total $ 3,004,775 $ 3,004,775 $ — $ — Fair Value Measurements at December 31, 2018 Using December 31, 2018 Quoted Prices in Significant Other Significant Assets: Cash equivalents $ 4,284,928 $ 4,284,928 $ — $ — Total $ 4,284,928 $ 4,284,928 $ — $ — |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility The Company is party to a Loan and Security Agreement, as amended (the “Credit Facility”), with a bank. As of June 30, 2019 , the Credit Facility permitted the Company to borrow up to $2.5 million on a revolving basis. The Credit Facility was amended most recently in June 2019 and expires in September 2019 . Amounts borrowed under the Credit Facility will bear interest equal to the prime rate plus 0.5% . Any borrowings under the Credit Facility will be collateralized by the Company’s cash, accounts receivable, inventory, and equipment. The Credit Facility includes traditional lending and reporting covenants. These include certain financial covenants applicable to liquidity that are to be maintained by the Company. As of June 30, 2019 , the Company was in compliance with these covenants and had not borrowed any funds under the Credit Facility. However, $226,731 of the amount under the Credit Facility is restricted to support letters of credit issued in favor of the Company's landlords. Consequently, the amount available for borrowing under the Credit Facility as of June 30, 2019 was approximately $2.3 million . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred stock and convertible preferred stock consist of the following: 6/30/2019 12/31/2018 Preferred stock, $0.001 par value; 5,000,000 shares authorized at June 30, 2019 and December 31, 2018; no shares issued and outstanding at June 30, 2019 and December 31, 2018 $ — $ — Series B convertible preferred stock, $0.001 par value; 147,000 shares designated at June 30, 2019 and December 31, 2018; 200 shares issued and outstanding at June 30, 2019 and December 31, 2018 $ 1 $ 1 Series D convertible preferred stock, $0.001 par value; 21,300 shares designated at June 30, 2019 and December 31, 2018; 11,054.73 and 14,052.93 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively $ 10 $ 14 Series E convertible preferred stock, $0.001 par value; 7,000 shares designated at June 30, 2019 and December 31, 2018; zero and 3,260.70 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively $ — $ 3 2019 equity activity During the six months ended June 30, 2019 , 2,998.20 shares of the Series D Preferred Stock were converted into a total of 1,140,000 shares of Common Stock and 3,260.70 shares of the Series E Preferred Stock were converted into a total of 1,239,810 shares of Common Stock. 2018 equity activity During the six months ended June 30, 2018 , the Company issued shares of fully vested common stock in partial settlement of outstanding management incentive compensation. The issuance involved 214,791 shares with an aggregate value of $294,264 , reflecting the $1.37 closing price of the Company’s common stock as reported on the Nasdaq Capital Market on April 12, 2018. During the six months ended June 30, 2018 , 3,739.3 shares of the Series E Preferred Stock were converted into a total of 1,421,787 shares of Common Stock and 7,927.05 shares of the Series F Preferred Stock were converted into a total of 3,014,087 shares of Common Stock. |
Reverse Stock Split
Reverse Stock Split | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Reverse Stock Split | Stockholders’ Equity Preferred stock and convertible preferred stock consist of the following: 6/30/2019 12/31/2018 Preferred stock, $0.001 par value; 5,000,000 shares authorized at June 30, 2019 and December 31, 2018; no shares issued and outstanding at June 30, 2019 and December 31, 2018 $ — $ — Series B convertible preferred stock, $0.001 par value; 147,000 shares designated at June 30, 2019 and December 31, 2018; 200 shares issued and outstanding at June 30, 2019 and December 31, 2018 $ 1 $ 1 Series D convertible preferred stock, $0.001 par value; 21,300 shares designated at June 30, 2019 and December 31, 2018; 11,054.73 and 14,052.93 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively $ 10 $ 14 Series E convertible preferred stock, $0.001 par value; 7,000 shares designated at June 30, 2019 and December 31, 2018; zero and 3,260.70 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively $ — $ 3 2019 equity activity During the six months ended June 30, 2019 , 2,998.20 shares of the Series D Preferred Stock were converted into a total of 1,140,000 shares of Common Stock and 3,260.70 shares of the Series E Preferred Stock were converted into a total of 1,239,810 shares of Common Stock. 2018 equity activity During the six months ended June 30, 2018 , the Company issued shares of fully vested common stock in partial settlement of outstanding management incentive compensation. The issuance involved 214,791 shares with an aggregate value of $294,264 , reflecting the $1.37 closing price of the Company’s common stock as reported on the Nasdaq Capital Market on April 12, 2018. During the six months ended June 30, 2018 , 3,739.3 shares of the Series E Preferred Stock were converted into a total of 1,421,787 shares of Common Stock and 7,927.05 shares of the Series F Preferred Stock were converted into a total of 3,014,087 shares of Common Stock. |
Restructuring And Related Activ
Restructuring And Related Activities (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Activities Disclosure [Text Block] | Business Restructuring In June 2019 the Company reported a business restructuring incorporating several different elements and involving a charge against operations of approximately $2.3 million . This restructuring included a reduction in force affecting eleven employees and severance costs of $224,773 . It also includes a planned consolidation of the Company's corporate office and engineering labs into its Woburn manufacturing facility resulting in estimated relocation and idle asset costs of approximately $225,000 . In addition, the Company incurred a Quell inventory-related costs totaling $1,895,884 in order to cover the write down of excess parts to their net realizable value of $1,485,884 and accrued costs related to parts purchase commitments of $410,000 . The severance and relocation obligations relating to the business restructuring outstanding as of June 30, 2019 are presented below. June 30, 2019 Severance obligations: Provision $ 224,773 Amounts paid out (192,515 ) Total 32,258 Relocation costs: Provision 225,000 Total 225,000 Balance - June 30, 2019 $ 257,258 Within the Company's Statements of Operations for the quarter and six months ended June 30, 2019, Quell inventory-related costs of $1,895,884 were recorded within costs of revenues, $201,514 of severance and relocation costs were recorded within research and development, $129,812 of severance and relocation costs were recorded within sales and marketing, and $118,447 of severance and relocation costs were recorded within general and administrative. |
Commitments And Contingencies C
Commitments And Contingencies Commitments And Contingencies (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Contingencies As previously disclosed, in 2017, the Company received a Civil Investigative Demand (“CID”) from the Federal Trade Commission (the “FTC”). The CID requested information in connection with an FTC review for compliance of the Company’s advertising about its product Quell with Sections 5 and 12 of the Federal Trade Commission Act (the “FTC Act”). During 2017 and 2018, the Company provided responses to those requests. The Company met with the staff of the FTC (the “Staff”) on three occasions between March and July 2019 to discuss the Company’s responses to FTC inquiries, and the Company has provided additional information in response to further requests from the FTC. As part of those discussions, the parties are engaged in a dialogue regarding the possible structuring of a settlement of this matter, which is likely to include a monetary judgment that would be payable to the FTC. The Company and the FTC will also be negotiating the scope and terms of a proposed consent order (the “Order”), which is expected to prohibit the Company from making certain claims in the Company’s advertising about Quell, as will likely be defined by the Order. The Company is currently awaiting feedback from the Staff on the latest discussions and responses to Staff inquiries, and intends to continue the dialogue with the Staff regarding a resolution of this matter. The ultimate outcome cannot be reasonably estimated at this time; however, the Company believes that a material financial loss is probable. |
Leases Leases (Notes)
Leases Leases (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Operating Leases In June 2018, the Company extended the lease on its Woburn, Massachusetts manufacturing facilities (the “Woburn Lease”) through September 2025. The Woburn Lease has a monthly base rent of $13,918 and a 5 -year extension option. In September 2014, the Company entered into a 7 -year operating lease agreement with one 5 -year extension option for its corporate office and product development activities in Waltham, Massachusetts (the “Waltham Lease”). The term of the Waltham Lease commenced on February 20, 2015 and includes fixed payment obligations that escalate over the initial lease term. Average monthly base rent under the Waltham lease is $41,074 . Future minimum lease payments under non-cancellable operating leases as of June 30, 2019 are as follows: 2019 $ 315,609 2020 641,193 2021 653,164 2022 247,347 2023 165,785 2024 165,785 2025 117,431 Total minimum lease payments $ 2,306,314 Weighted-average discount rate, 14.6% $ 606,640 Lease obligation, current portion 582,940 Lease obligation, net of current portion 1,116,734 $ 2,306,314 Total recorded rent expense was $332,049 and $307,420 , for the six months ended June 30, 2019 and 2018, respectively. The Company records rent expense on its facility leases on a straight-line basis over the lease term. |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Share-based Payment Arrangement [Policy Text Block] | Stock-based Compensation Total compensation cost related to non-vested awards not yet recognized at June 30, 2019 was $139,588 . The total compensation costs are expected to be recognized over a weighted-average period of 1.3 years. |
Our Business-An Overview | Our Business-An Overview NeuroMetrix, Inc., or the Company, is a commercial stage, innovation driven healthcare company combining neurostimulation and digital medicine to address chronic health conditions including chronic pain, sleep disorders, and diabetes. The Company has two primary products. Quell is an over-the-counter wearable therapeutic device for chronic pain. DPNCheck® is a rapid point-of-care test for diabetic neuropathy which is the most common long-term complication of Type 2 diabetes. In June 2019 the Company announced a business restructuring aimed at operating costs and cash preservation while continuing to focus on supporting its DPNCheck® product line, managing its existing Quell® business while evaluating alternative therapeutic applications for the core technology, maintaining its strategic collaboration with GlaxoSmithKline, and attempting to negotiate a settlement of the previously disclosed and ongoing Federal Trade Commission (FTC) investigation which is centered on Quell advertising. The restructuring involved a reduction in force, a planned consolidation of all operations in a single location, and the write-down of excess Quell inventory. In connection with the restructuring, the Company recorded in the second quarter of 2019 a restructuring charge of $2.3 million (See Note 7.). It is likely that the Company will incur future charges associated with settlement of the FTC matter; however, the amount of such charges cannot be reasonably estimated at this time (See Note 8.). In June 2019, the Company also announced that it had retained an investment bank to explore strategic alternatives to enhance shareholder value, including the potential sale or merger of the Company. The accompanying financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company has suffered recurring losses from operations and negative cash flows from operating activities. At June 30, 2019 , the Company had an accumulated deficit of $192.3 million . These factors raise substantial doubt about the Company’s ability to continue as a going concern for the one-year period from the date of issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company held cash and cash equivalents of $5.0 million as of June 30, 2019 . The Company believes that these resources, future GSK collaboration milestone payments, and the cash to be generated from future product sales will be sufficient to meet its projected operating requirements through 2019. Accordingly, the Company will need to raise additional funds to support its operating and capital needs in 2020. The Company continues to face significant challenges and uncertainties and, as a result, the Company’s available capital resources may be consumed more rapidly than currently expected due to (a) decreases in sales of the Company’s products and the uncertainty of future revenues from new products; (b) changes the Company may make to the business that affect ongoing operating expenses; (c) changes the Company may make in its business strategy; (d) regulatory developments affecting the Company’s existing products; (e) changes the Company may make in its research and development spending plans; (f) delays in the anticipated timing of achievement of GSK milestones; (g) the final outcome of the FTC civil investigative demand enforcement action involving Quell; and (h) other items affecting the Company’s forecasted level of expenditures and use of cash resources. The Company may attempt to obtain additional funding through achievement of milestones under the GSK collaboration, public or private financing, collaborative arrangements with strategic partners, or through additional credit lines or other debt financing sources to increase the funds available to fund operations. However, the Company may not be able to secure such funding in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity or debt securities to raise additional funds, its existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences and privileges senior to those of the Company’s existing stockholders. If the Company raises additional funds through collaboration, licensing or other similar arrangements, it may be necessary to relinquish valuable rights to its potential products or proprietary technologies, or grant licenses on terms that are not favorable to the Company. Without additional funds, the Company may be forced to delay, scale back or eliminate some of its sales and marketing efforts, research and development activities, or other operations and potentially delay product development in an effort to provide sufficient funds to continue its operations. If any of these events occurs, the Company’s ability to achieve its development and commercialization goals would be adversely affected. |
Unaudited Interim Financial Statements | Unaudited Interim Financial Statements The accompanying unaudited balance sheet as of June 30, 2019 , unaudited statements of operations for the quarters and six months ended June 30, 2019 and 2018 , unaudited statements of changes in stockholders' equity for the six months ended June 30, 2019 and 2018 and the unaudited statements of cash flows for the six months ended June 30, 2019 and 2018 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The accompanying balance sheet as of December 31, 2018 has been derived from audited financial statements prepared at that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, the financial statements include all normal and recurring adjustments considered necessary for a fair presentation of the Company’s financial position and operating results. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or the SEC, on January 24, 2019 (File No. 001-33351), or the Company’s 2018 Form 10-K. |
Revenues | Revenues Revenues include product sales, net of estimated returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for product transferred. Revenue is recognized when contractual performance obligations have been satisfied and control of the product has been transferred to the customer. In most cases, the Company has a single product delivery performance obligation. Accrued product returns are estimated based on historical data and evaluation of current information. Accounts receivable are recorded net of the allowance for doubtful accounts which represents the Company’s best estimate of credit losses. Allowance for doubtful accounts was $25,000 as of June 30, 2019 and December 31, 2018 . Two customers accounted for 31% and one customer accounted for 20% of total revenues in the quarters and six months ended June 30, 2019 , respectively. Two customers accounted for 24% and 29% of total revenues in the quarters and six months ended June 30, 2018, respectively. Three customers accounted for 62% and two customers accounted for 45% of accounts receivable as of June 30, 2019 and December 31, 2018 , respectively. Collaboration income Collaboration income is recognized within Other income when contractual performance obligations, outside the ordinary activities of the Company, have been satisfied and control has been transferred to a collaboration partner. Collaboration income for each performance obligation is based on the fair value of such performance obligation relative to the total fair value of all performance obligations multiplied by the overall transaction price. A deferred collaboration income liability is recorded when payments are received prior to satisfaction of performance obligations. The Company recognized Collaboration income net of costs, within Other income in the Statement of Operations of $7,116,667 and $8,505,704 , for the six months ended June 30, 2019 and 2018, respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during reporting periods. Actual results could differ from those estimates. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 required that lessees recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. The Company adopted ASU 2016-02, using the modified retrospective method, upon its effective date of January 1, 2019. The impact of adoption was an increase to long-term assets and total liabilities of approximately $1.9 million as of January 1, 2019. The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of June 30, 2019 : As reported Adjustments Amounts under prior GAAP Assets Prepaid expenses and other current assets $ 1,101,154 $ 26,895 $ 1,128,049 Total current assets $ 8,849,313 $ 26,895 $ 8,876,208 Right of use asset $ 1,645,668 $ (1,645,668 ) $ — Other long-term assets $ 29,824 $ 44,100 $ 73,924 Total assets $ 10,814,277 $ (1,574,673 ) $ 9,239,604 Liabilities Accrued expenses $ 3,081,192 $ (457,939 ) $ 2,623,253 Total current liabilities $ 4,839,893 $ (457,939 ) $ 4,381,954 Lease obligation - net of current portion $ 1,116,734 $ (1,116,734 ) $ — Total liabilities $ 5,956,627 $ (1,574,673 ) $ 4,381,954 The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of December 31, 2018: As reported Adjustments Amounts under prior GAAP Assets Prepaid expenses and other current assets $ 860,915 $ 44,852 $ 905,767 Total current assets $ 11,586,165 $ 44,852 $ 11,631,017 Right of use asset $ 1,968,062 $ (1,968,062 ) $ — Other long-term assets $ 30,314 $ 44,578 $ 74,892 Total assets $ 13,991,880 $ (1,878,632 ) $ 12,113,248 Liabilities Accrued expenses $ 2,236,633 $ (577,460 ) $ 1,659,173 Total current liabilities $ 6,592,897 $ (577,460 ) $ 6,015,437 Lease obligation - net of current portion $ 1,301,172 $ (1,301,172 ) $ — Total liabilities $ 7,894,069 $ (1,878,632 ) $ 6,015,437 Adoption of ASU 2016-02 had no impact on the Company's statements of operations, statements of changes in stockholders' equity and statements of cash flows. |
Business and Basis of Present_3
Business and Basis of Presentation Adoption of ASU 2016-02 (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ASU 2016-02 Impact [Table Text Block] [Table Text Block] | The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of June 30, 2019 : As reported Adjustments Amounts under prior GAAP Assets Prepaid expenses and other current assets $ 1,101,154 $ 26,895 $ 1,128,049 Total current assets $ 8,849,313 $ 26,895 $ 8,876,208 Right of use asset $ 1,645,668 $ (1,645,668 ) $ — Other long-term assets $ 29,824 $ 44,100 $ 73,924 Total assets $ 10,814,277 $ (1,574,673 ) $ 9,239,604 Liabilities Accrued expenses $ 3,081,192 $ (457,939 ) $ 2,623,253 Total current liabilities $ 4,839,893 $ (457,939 ) $ 4,381,954 Lease obligation - net of current portion $ 1,116,734 $ (1,116,734 ) $ — Total liabilities $ 5,956,627 $ (1,574,673 ) $ 4,381,954 The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of December 31, 2018: As reported Adjustments Amounts under prior GAAP Assets Prepaid expenses and other current assets $ 860,915 $ 44,852 $ 905,767 Total current assets $ 11,586,165 $ 44,852 $ 11,631,017 Right of use asset $ 1,968,062 $ (1,968,062 ) $ — Other long-term assets $ 30,314 $ 44,578 $ 74,892 Total assets $ 13,991,880 $ (1,878,632 ) $ 12,113,248 Liabilities Accrued expenses $ 2,236,633 $ (577,460 ) $ 1,659,173 Total current liabilities $ 6,592,897 $ (577,460 ) $ 6,015,437 Lease obligation - net of current portion $ 1,301,172 $ (1,301,172 ) $ — Total liabilities $ 7,894,069 $ (1,878,632 ) $ 6,015,437 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Quarters Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income (loss) applicable to common stockholders $ (3,362,191 ) $ 573,928 $ (1,311,684 ) $ 1,740,180 Weighted average number of common shares outstanding, basic 9,048,235 7,330,479 8,396,249 6,839,778 Dilutive convertible preferred stock — 6,584,674 — 6,980,585 Weighted average number of common shares outstanding, dilutive 9,048,235 13,915,153 8,396,249 13,820,363 Net income (loss) per common share applicable to common stockholders, basic $ (0.37 ) $ 0.08 $ (0.16 ) $ 0.25 Net income (loss) per common share applicable to common stockholders, diluted $ (0.37 ) $ 0.04 $ (0.16 ) $ 0.13 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Quarters Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Options 482,656 466,025 485,559 401,778 Warrants 459,375 459,375 459,375 459,375 Convertible preferred stock 4,915,974 — 5,567,960 — Total 5,858,005 925,400 6,512,894 861,153 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following: June 30, 2019 December 31, 2018 Purchased components $ 1,226,434 $ 1,767,674 Finished goods 836,997 1,094,190 $ 2,063,431 $ 2,861,864 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following: June 30, 2019 December 31, 2018 Lease obligation, current portion $ 582,940 $ 577,460 Supplier excess commitments 590,000 160,000 Professional services 566,000 391,000 Technology fees 450,000 450,000 Advertising and promotion 380,000 171,000 Compensation expense 162,990 223,756 Warranty reserve 103,000 129,837 Relocation costs 100,000 — Other 146,262 133,580 $ 3,081,192 $ 2,236,633 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at June 30, 2019 Using June 30, 2019 Quoted Prices in Significant Other Significant Assets: Cash equivalents $ 3,004,775 $ 3,004,775 $ — $ — Total $ 3,004,775 $ 3,004,775 $ — $ — Fair Value Measurements at December 31, 2018 Using December 31, 2018 Quoted Prices in Significant Other Significant Assets: Cash equivalents $ 4,284,928 $ 4,284,928 $ — $ — Total $ 4,284,928 $ 4,284,928 $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Preferred stock and convertible preferred stock | Preferred stock and convertible preferred stock consist of the following: 6/30/2019 12/31/2018 Preferred stock, $0.001 par value; 5,000,000 shares authorized at June 30, 2019 and December 31, 2018; no shares issued and outstanding at June 30, 2019 and December 31, 2018 $ — $ — Series B convertible preferred stock, $0.001 par value; 147,000 shares designated at June 30, 2019 and December 31, 2018; 200 shares issued and outstanding at June 30, 2019 and December 31, 2018 $ 1 $ 1 Series D convertible preferred stock, $0.001 par value; 21,300 shares designated at June 30, 2019 and December 31, 2018; 11,054.73 and 14,052.93 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively $ 10 $ 14 Series E convertible preferred stock, $0.001 par value; 7,000 shares designated at June 30, 2019 and December 31, 2018; zero and 3,260.70 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively $ — $ 3 |
Restructuring And Related Act_2
Restructuring And Related Activities Restructuring And Related Activities | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The severance and relocation obligations relating to the business restructuring outstanding as of June 30, 2019 are presented below. June 30, 2019 Severance obligations: Provision $ 224,773 Amounts paid out (192,515 ) Total 32,258 Relocation costs: Provision 225,000 Total 225,000 Balance - June 30, 2019 $ 257,258 |
Leases Leases (Tables)
Leases Leases (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | 2019 $ 315,609 2020 641,193 2021 653,164 2022 247,347 2023 165,785 2024 165,785 2025 117,431 Total minimum lease payments $ 2,306,314 Weighted-average discount rate, 14.6% $ 606,640 Lease obligation, current portion 582,940 Lease obligation, net of current portion 1,116,734 $ 2,306,314 |
Business and Basis of Present_4
Business and Basis of Presentation (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization And Basis Of Presentation [Line Items] | |||||||
Restructuring Charges | $ 2,300,000 | $ 2,300,000 | |||||
Revenues | $ 5,477,618 | $ 8,694,558 | |||||
Accounts receivable, net | 726,670 | 726,670 | 726,670 | $ 1,082,957 | |||
Net proceeds from issuance of stock and warrants | 7,497 | 0 | |||||
Accumulated deficit | 192,328,275 | 192,328,275 | 192,328,275 | 191,016,591 | |||
Cash and cash equivalents | 4,958,058 | 4,958,058 | 4,958,058 | 6,780,429 | |||
Allowance for doubtful accounts | 25,000 | 25,000 | 25,000 | 25,000 | |||
Prepaid expenses and other current assets | (1,101,154) | (1,101,154) | (1,101,154) | (860,915) | |||
Assets, Current | (8,849,313) | (8,849,313) | (8,849,313) | (11,586,165) | |||
Accrued Sales Return provisions | 741,607 | 741,607 | 741,607 | 1,101,658 | |||
Liabilities, Current | (4,839,893) | (4,839,893) | (4,839,893) | (6,592,897) | |||
Operating Lease, Liability, Noncurrent | (1,116,734) | (1,116,734) | $ (1,116,734) | (1,116,734) | (1,116,734) | (1,301,172) | |
Stockholders' Equity Attributable to Parent | 4,857,650 | 4,857,650 | 7,721,608 | 4,857,650 | 7,721,608 | 6,097,811 | $ 5,017,389 |
Cost of revenues | 3,143,787 | 1,950,304 | 5,468,018 | 4,905,564 | |||
Gross Profit | (789,104) | 1,801,264 | 9,600 | 3,788,994 | |||
Net Income (Loss) Available to Common Stockholders, Diluted | (3,362,191) | $ 573,928 | (1,311,684) | $ 1,740,180 | |||
Compensation cost not yet recognized | 139,588 | $ 139,588 | $ 139,588 | ||||
Compensation cost not yet recognized, period for recognition | 1 year 3 months 23 days | ||||||
Earnings Per Share, Basic | $ (0.37) | $ 0.08 | $ (0.16) | $ 0.25 | |||
Earnings Per Share, Diluted | $ (0.37) | $ 0.04 | $ (0.16) | $ 0.13 | |||
Operating Lease, Right-of-Use Asset | (1,645,668) | $ (1,645,668) | $ (1,645,668) | (1,968,062) | |||
Other long-term assets | (29,824) | (29,824) | (29,824) | (30,314) | |||
Assets | (10,814,277) | (10,814,277) | (10,814,277) | (13,991,880) | |||
Accrued Liabilities, Current | (3,081,192) | (3,081,192) | (3,081,192) | (2,236,633) | |||
Liabilities | (5,956,627) | (5,956,627) | (5,956,627) | $ (7,894,069) | |||
Collaboration Income | $ 1,381,818 | $ 3,749,999 | $ 7,116,667 | $ 8,505,704 | |||
One Customer [Member] | Revenue | Customer Concentration Risk | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Concentration risk, percentage | 20.00% | ||||||
Two Customers | Revenue | Customer Concentration Risk | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Concentration risk, percentage | 31.00% | 24.00% | 29.00% | ||||
Two Customers | Accounts Receivable | Customer Concentration Risk | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Concentration risk, percentage | 45.00% | ||||||
Three Customers [Member] | Accounts Receivable | Customer Concentration Risk | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Concentration risk, percentage | 62.00% | ||||||
CalculatedUnderRevenueGuidanceInEffectBeforeTopic842 [Member] | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Prepaid expenses and other current assets | (1,128,049) | $ (1,128,049) | $ (1,128,049) | $ (905,767) | |||
Assets, Current | (8,876,208) | (8,876,208) | (8,876,208) | (11,631,017) | |||
Liabilities, Current | (4,381,954) | (4,381,954) | (4,381,954) | (6,015,437) | |||
Operating Lease, Liability, Noncurrent | 0 | 0 | 0 | 0 | |||
Operating Lease, Right-of-Use Asset | 0 | 0 | 0 | 0 | |||
Other long-term assets | (73,924) | (73,924) | (73,924) | (74,892) | |||
Assets | (9,239,604) | (9,239,604) | (9,239,604) | (12,113,248) | |||
Accrued Liabilities, Current | (2,623,253) | (2,623,253) | (2,623,253) | (1,659,173) | |||
Liabilities | (4,381,954) | (4,381,954) | (4,381,954) | (6,015,437) | |||
DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic842 [Member] | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Prepaid expenses and other current assets | 26,895 | 26,895 | 26,895 | 44,852 | |||
Assets, Current | 26,895 | 26,895 | 26,895 | 44,852 | |||
Liabilities, Current | (457,939) | (457,939) | (457,939) | (577,460) | |||
Operating Lease, Liability, Noncurrent | (1,116,734) | (1,116,734) | (1,116,734) | (1,301,172) | |||
Operating Lease, Right-of-Use Asset | (1,645,668) | (1,645,668) | (1,645,668) | (1,968,062) | |||
Other long-term assets | 44,100 | 44,100 | 44,100 | 44,578 | |||
Assets | (1,574,673) | (1,574,673) | (1,574,673) | (1,878,632) | |||
Accrued Liabilities, Current | (457,939) | (457,939) | (457,939) | (577,460) | |||
Liabilities | $ (1,574,673) | $ (1,574,673) | $ (1,574,673) | $ (1,878,632) |
Comprehensive Loss (Detail)
Comprehensive Loss (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||||
Other comprehensive income (loss), net of tax | $ 0 | $ 0 | $ 0 | $ 0 |
Net Loss Per Common Share - Sch
Net Loss Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities excluded from the computation of earnings per share (in shares) | 5,858,005 | 925,400 | 6,512,894 | 861,153 |
Convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities excluded from the computation of earnings per share (in shares) | 4,915,974 | 0 | 5,567,960 | 0 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities excluded from the computation of earnings per share (in shares) | 459,375 | 459,375 | 459,375 | 459,375 |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities excluded from the computation of earnings per share (in shares) | 482,656 | 466,025 | 485,559 | 401,778 |
Net Loss Per Common Share Sched
Net Loss Per Common Share Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ (3,362,191) | $ 573,928 | $ (1,311,684) | $ 1,740,180 |
Weighted Average Number of Shares Outstanding, Basic | 9,048,235 | 7,330,479 | 8,396,249 | 6,839,778 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 0 | 6,584,674 | 0 | 6,980,585 |
Weighted Average Number of Shares Outstanding, Diluted | 9,048,235 | 13,915,153 | 8,396,249 | 13,820,363 |
Earnings Per Share, Basic | $ (0.37) | $ 0.08 | $ (0.16) | $ 0.25 |
Earnings Per Share, Diluted | $ (0.37) | $ 0.04 | $ (0.16) | $ 0.13 |
Inventories (Detail)
Inventories (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Inventory [Line Items] | |||
Inventory Valuation Reserves | $ 2,181,819 | ||
Purchased components | 1,226,434 | $ 1,767,674 | |
Inventory Write-down | (2,595,884) | $ 0 | |
Finished goods | 836,997 | 1,094,190 | |
Inventories | 2,063,431 | $ 2,861,864 | |
PurchasedComponents [Member] | |||
Inventory [Line Items] | |||
Inventory Valuation Reserves | (2,030,000) | ||
FinishedGoods [Member] | |||
Inventory [Line Items] | |||
Inventory Valuation Reserves | $ (151,819) |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Payables and Accruals [Abstract] | |||
Sales return allowance | $ 741,607 | $ 1,101,658 | |
Technology fees | 450,000 | 450,000 | |
ContractManufacturer | 590,000 | 160,000 | |
Professional services | 566,000 | 391,000 | |
Operating Lease, Liability, Current | 582,940 | 577,460 | $ 582,940 |
Warranty reserve | 103,000 | 129,837 | |
Accrued Relocation Costs | 100,000 | 0 | |
Accrued Advertising | 380,000 | 171,000 | |
Accrued Salaries | 162,990 | 223,756 | |
Other | 146,262 | 133,580 | |
Accrued expenses | $ 3,081,192 | $ 2,236,633 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash equivalents | $ 3,004,775 | $ 4,284,928 |
Assets, Fair Value Disclosure | 3,004,775 | 4,284,928 |
Level 1 | ||
Assets | ||
Cash equivalents | 3,004,775 | 4,284,928 |
Assets, Fair Value Disclosure | 3,004,775 | 4,284,928 |
Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Credit Facility (Detail)
Credit Facility (Detail) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Revolving credit facility, maximum borrowing capacity | $ 2,500,000 |
Credit facility expiration date | Sep. 30, 2019 |
Credit facility limit restricted to support letter of credit | $ 226,731 |
Line of credit facility, remaining borrowing capacity | $ 2,300,000 |
Prime Rate | |
Line of Credit Facility [Line Items] | |
Interest rate over prime rate | 0.50% |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock and Convertible Preferred Stock (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Non-Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Value of preferred stock issued | $ 0 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series B Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Value of preferred stock issued | $ 1 | $ 1 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 200 | 500 |
Preferred stock, shares outstanding (in shares) | 200 | 500 |
Preferred stock, shares designated (in shares) | 147,000 | 147,000 |
Series D Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Value of preferred stock issued | $ 10 | $ 14 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 11,712.23 | 14,052.93 |
Preferred stock, shares outstanding (in shares) | 11,712.23 | 14,052.93 |
Preferred stock, shares designated (in shares) | 21,300 | 21,300 |
Series E Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Value of preferred stock issued | $ 0 | $ 3 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 | 7,000 |
Preferred stock, shares outstanding (in shares) | 0 | 7,000 |
Preferred stock, shares designated (in shares) | 7,000 | 7,000 |
Series F Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 | 7,927.05 |
Preferred stock, shares outstanding (in shares) | 0 | 7,927.05 |
Preferred stock, shares designated (in shares) | 10,621 | 10,621 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Apr. 12, 2018 | |
Class of Stock [Line Items] | ||||
Common Stock, Shares, Issued | 9,781,755 | 7,380,463 | ||
Common Stock, Value, Issued | $ 978 | $ 738 | ||
Net proceeds from issuance of stock and warrants | $ 7,497 | $ 0 | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
Compensation cost not yet recognized | $ 139,588 | |||
Compensation cost not yet recognized, period for recognition | 1 year 3 months 23 days | |||
Series D Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 11,712.23 | 14,052.93 | ||
Shares converted (in shares) | 2,998.2 | |||
Series E Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 0 | 7,000 | ||
Shares converted (in shares) | 3,260.7 | 3,739.3 | ||
Series F Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 0 | 7,927.05 | ||
Shares converted (in shares) | (7,927.05) | |||
Common Stock | Series D Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares issued upon conversion (in shares) | (1,140,000) | |||
Common Stock | Series E Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares issued upon conversion (in shares) | (1,239,810) | (1,421,787) | ||
Common Stock | Series F Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares issued upon conversion (in shares) | (3,014,087) | |||
Management Incentive [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares, Issued | 214,791 | |||
Common Stock, Value, Issued | $ 294,264 | |||
Stock Price (in dollars per share) | $ 1.37 |
Reverse Stock Split (Details)
Reverse Stock Split (Details) - shares | Jun. 30, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||
Shares outstanding (in shares) | 9,781,755 | 7,380,463 |
Restructuring And Related Act_3
Restructuring And Related Activities (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 2,300,000 | $ 2,300,000 | ||
Severance Costs | 224,773 | |||
Restructuring Reserve | 257,258 | 257,258 | $ 257,258 | |
Facility Relocation Costs | 225,000 | |||
Inventory Write-down | 2,595,884 | $ 0 | ||
Quell [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory Write-down | 1,895,884 | |||
Quell [Member] | Cost of Sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory Write-down | 1,895,884 | |||
Quell [Member] | Research and Development Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance And Relocation Costs | 201,514 | |||
Quell [Member] | Selling and Marketing Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance And Relocation Costs | 129,812 | |||
Quell [Member] | General and Administrative Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance And Relocation Costs | 118,447 | |||
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | (192,515) | |||
Restructuring Reserve | 32,258 | 32,258 | 32,258 | |
Facility Relocation [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 225,000 | $ 225,000 | $ 225,000 | |
Purchase Commitment [Member] | Quell [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory Write-down | 410,000 | |||
Excess Parts [Member] | Quell [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory Write-down | $ 1,485,884 |
Leases Leases (Details)
Leases Leases (Details) | Jun. 01, 2018USD ($) | Feb. 20, 2015USD ($) | Sep. 30, 2014extension_option | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 01, 2014 |
Operating Leased Assets [Line Items] | |||||||
Operating Leases, Rent Expense | $ 332,049 | $ 307,420 | |||||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 315,609 | ||||||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 641,193 | ||||||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 653,164 | ||||||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 247,347 | ||||||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 165,785 | ||||||
Operating Leases, Future Minimum Payments, Due in Six Years | 165,785 | ||||||
Operating Leases, Future Minimum Payments, Due in Seven Years | 117,431 | ||||||
Lessee, Operating Lease, Liability, Payments, Due | 2,306,314 | ||||||
Operating Lease Discount | 606,640 | ||||||
Operating Lease, Liability, Current | 582,940 | 582,940 | $ 577,460 | ||||
Operating Lease, Liability, Noncurrent | $ 1,116,734 | $ 1,116,734 | $ 1,301,172 | ||||
Woburn Lease [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Lessee, Operating Lease, Renewal Term | 5 years | ||||||
Woburn Lease [Member] | MonthlyRent [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Operating Lease, Payments | $ 13,918 | ||||||
Waltham Lease [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Lessee, Operating Lease, Renewal Term | 5 years | ||||||
Lessee, Operating Lease, Term of Contract | 7 years | ||||||
Lessee Leasing Arrangements, Operating Leases, Number of Extension Options | extension_option | 1 | ||||||
Waltham Lease [Member] | MonthlyRent [Member] | |||||||
Operating Leased Assets [Line Items] | |||||||
Operating Lease, Payments | $ 41,074 |
Uncategorized Items - nuro-2019
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 4,043,681 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 6,780,429 |