Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 24, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | NeuroMetrix, Inc. | ||
Entity File Number | 001-33351 | ||
Entity Tax Identification Number | 043308180 | ||
Entity Address, Address Line One | 4B Gill Street | ||
Entity Address, City or Town | Woburn | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01801 | ||
City Area Code | 781 | ||
Local Phone Number | 890-9989 | ||
Entity Central Index Key | 0001289850 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,893,251 | ||
Trading Symbol | NURO | ||
Entity Common Stock, Shares Outstanding | 1,400,674 | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 41,627 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 3,126,206 | $ 6,780,429 |
Accounts receivable, net of allowances of $70,000 and $25,000 at December 31, 2019 and 2018, respectively | 298,967 | 1,082,957 |
Inventories | 1,163,714 | 2,861,864 |
Collaborator Payments Receivable | 189,008 | 0 |
Prepaid expenses and other current assets | 652,919 | 860,915 |
Total current assets | 5,430,814 | 11,586,165 |
Fixed assets, net | 273,448 | 407,339 |
Operating Lease, Right-of-Use Asset | 1,159,774 | 1,968,062 |
Other long-term assets | 29,650 | 30,314 |
Total assets | 6,893,686 | 13,991,880 |
Current liabilities: | ||
Accounts payable | 725,658 | 1,298,084 |
Accrued product returns | 1,443,574 | 1,659,173 |
Accrued Sales Return provisions | 689,000 | 1,101,658 |
Operating Lease, Liability, Current | 588,546 | 577,460 |
Deferred Collaboration Income | 0 | 1,956,522 |
Total current liabilities | 3,446,778 | 6,592,897 |
Operating Lease, Liability, Noncurrent | 916,674 | 1,301,172 |
Total liabilities | 4,363,452 | 7,894,069 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value; 25,000,000 and 100,000,000 authorized at December 31, 2019 and 2018; 1,400,674 and 738,029 shares issued and outstanding at December 31, 2019 and 2018, respectively | 140 | 74 |
Additional paid-in capital | 197,319,698 | 197,114,310 |
Accumulated deficit | (194,789,605) | (191,016,591) |
Total stockholders’ equity | 2,530,234 | 6,097,811 |
Total liabilities and stockholders’ equity | 6,893,686 | 13,991,880 |
Preferred stock | ||
Stockholders’ equity | ||
Preferred stock | 0 | 0 |
Convertible preferred stock | ||
Stockholders’ equity | ||
Preferred stock | $ 1 | $ 18 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets, Current [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 70,000 | $ 25,000 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, shares issued (in shares) | 1,400,674 | 738,029 |
Common stock, shares outstanding (in shares) | 1,400,674 | 738,029 |
Common stock, shares authorized (in shares) | 25,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 9,272,522 | $ 16,090,138 |
Cost of revenues | 7,026,899 | 8,707,082 |
Gross profit | 2,245,623 | 7,383,056 |
Operating expenses: | ||
Research and development | 3,101,976 | 5,134,592 |
Sales and marketing | 4,755,168 | 9,698,753 |
General and administrative | 5,923,190 | 4,841,278 |
Total operating expenses | 13,780,334 | 19,674,623 |
Loss from operations | (11,534,711) | (12,291,567) |
Collaboration Income | 7,716,667 | 12,255,704 |
Other Income | 45,030 | 59,468 |
Other Nonoperating Income | 7,761,697 | 12,315,172 |
Net income (loss) applicable to common stockholders: | (3,773,014) | 23,605 |
Net income (loss) applicable to common stockholders: | ||
Net income (loss) applicable to common stockholders | $ (3,773,014) | $ 23,605 |
Earnings Per Share, Diluted | $ (3.90) | $ 0.02 |
Earnings Per Share, Basic | $ (3.90) | $ 0.03 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity - USD ($) | Total | Series B – F Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Management Incentive [Member] | Management Incentive [Member]Common Stock | Management Incentive [Member]Additional Paid-In Capital |
Beginning Balance at Dec. 31, 2017 | $ 5,017,389 | $ 30 | $ 27 | $ 196,355,386 | $ (191,338,054) | |||
Beginning Balance (in shares) at Dec. 31, 2017 | 29,479.98 | 270,590 | ||||||
Stock-based compensation expense | 446,077 | 446,077 | ||||||
Conversion of Stock, Shares Converted | 11,966.35 | |||||||
Conversion of Stock, Amount Converted | $ (12) | (32) | ||||||
Issuance of common stock upon conversion of preferred stock | 0 | $ 44 | ||||||
Stock Issued During Period, Shares, Other | 21,479 | |||||||
Stock Issued During Period, Value, Other | $ 294,264 | $ 2 | $ 294,262 | |||||
Issuance of common stock upon conversion of preferred stock (in shares) | (443,680) | |||||||
Issuance of common stock under employees stock purchase plan | 18,618 | $ 1 | 18,617 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 2,280 | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 297,858 | 297,858 | ||||||
Net income (loss) | 23,605 | 23,605 | ||||||
Ending Balance at Dec. 31, 2018 | 6,097,811 | $ 18 | $ 74 | 197,114,310 | (191,016,591) | |||
Ending Balance (in shares) at Dec. 31, 2018 | 17,513.63 | 738,029 | ||||||
Conversion of Stock, Shares Converted | 17,313.63 | |||||||
Conversion of Stock, Amount Converted | $ (17) | (48) | ||||||
Issuance of common stock upon conversion of preferred stock | 0 | $ 65 | ||||||
Issuance of common stock upon conversion of preferred stock (in shares) | (658,314) | |||||||
Issuance of common stock under employees stock purchase plan | 15,106 | $ 1 | 15,105 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 4,331 | |||||||
Net income (loss) | (3,773,014) | (3,773,014) | ||||||
Ending Balance at Dec. 31, 2019 | $ 2,530,234 | $ 1 | $ 140 | $ 197,319,698 | $ (194,789,605) | |||
Ending Balance (in shares) at Dec. 31, 2019 | 200 | 1,400,674 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net Cash Provided by (Used in) Financing Activities | $ 15,106 | $ 18,618 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (3,654,223) | 2,736,748 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (3,773,014) | 23,605 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 124,012 | 169,712 |
Stock-based compensation | 190,331 | 446,077 |
AllowanceForDoubtfulAccountsCharge | 49,361 | 0 |
IdleFacilityImpairmentCharge | 400,000 | 0 |
Inventory Write-down | 2,595,884 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 734,629 | 1,319,871 |
Inventories | (897,734) | (719,303) |
Increase (Decrease) In Collaboration Receivable | (189,008) | 0 |
Prepaid expenses and other current and long-term assets | 243,536 | 358,661 |
Accounts payable | (572,426) | 572,153 |
Accrued expenses and compensation | (157,644) | (408,687) |
Increase (Decrease) in Accrued Product Returns | (412,658) | (856,898) |
Increase (Decrease) in Deferred Collaboration Income | (1,956,522) | 1,956,522 |
Net Cash Provided by (Used in) Operating Activities | (3,621,253) | 2,861,713 |
Cash flows for investing activities: | ||
Purchases of fixed assets | (48,076) | (143,583) |
Net Cash Provided by (Used in) Investing Activities | (48,076) | (143,583) |
Proceeds from Issuance or Sale of Equity | 15,106 | 18,618 |
Cash flows from financing activities: | ||
Cash and cash equivalents, end of year | 3,126,206 | 6,780,429 |
Supplemental disclosure of cash flow information: | ||
Common stock issued to settle employee incentive compensation obligations | 0 | 294,264 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 3,126,206 | $ 6,780,429 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation NeuroMetrix, Inc (the Company) develops and commercializes health care products that utilize non-invasive neurostimulation and digital medicine. Revenues are derived from the sale of medical devices and after-market consumable products and accessories. The Company’s products are sold in the United States and select overseas markets. They are cleared by the U.S. Food and Drug Administration (FDA) and regulators in foreign jurisdictions where appropriate. The Company has two primary products. DPNCheck® is a point-of-care test for diabetic peripheral neuropathy which is the most common long-term complication of Type 2 diabetes. Quell is an app-enabled, over-the-counter wearable device for chronic pain. In January 2018, the Company entered a collaboration with GlaxoSmithKline ("GSK") under terms of which GSK acquired the rights to Quell outside the United States and committed to a joint development program. The initial term of the GSK collaboration runs through 2020. Through December 31, 2019 , GSK made development milestone payments of approximately $20.5 million to the Company in addition to co-funding the 2019 development program. Commercialization milestones totaling approximately $4.5 million are payable under the GSK collaboration when and if product launch occurs in pre-defined countries. 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 December 31, 2019 , the Company had an accumulated deficit of $194.8 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. At December 31, 2019 , the Company held cash and cash equivalents of $3.1 million . The Company believes that these resources and the cash to be generated from future product sales will be sufficient to meet its projected operating requirements into the second quarter of 2020 . Accordingly, the Company will need to raise additional funds to support its operating and capital needs in the second quarter of 2020 and beyond . 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; and (f) other items affecting the Company’s forecasted level of expenditures and use of cash resources. The Company may attempt to obtain additional funding from a public or private financing, collaborative arrangements with strategic partners, divestiture of assets 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 financing 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 to 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates and Assumptions The preparation of financial statements in conformity with United States generally accepted accounting principles 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. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances and regularly assesses these estimates, but actual results could differ materially from these estimates. Effects of changes in estimates are recorded in the period in which they occur. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. Cash equivalents are recorded at cost which approximates fair value. The Company invests cash primarily in a money market account and other investments which management believes are subject to minimal credit and market risk. Concentrations of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents in bank deposit accounts and trade receivables. The Company invests its funds in highly rated institutions and limits its investment in any individual account so that they do not exceed FDIC limits. The Company has not experienced significant losses related to cash and cash equivalents and does not believe it is exposed to any significant credit risks relating to its cash and cash equivalents. At December 31, 2019 and 2018 , two customers accounted for 42% and 45% of accounts receivable, respectively. One customer accounted for 19% of revenues for the year ended December 31, 2019 and two customers accounted for 23% of revenues, for the year ended December 31, 2018 . The Company relies on in-house assembly and four third-party manufacturers to manufacture the major portion of its current products and product components. The disruption or termination of the supply of these products or a significant increase in the cost of these products from these sources could have an adverse effect on the Company’s business, financial position, and results of operations. Inventories Inventories, consisting primarily of finished goods and purchased components, are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The Company writes down inventory to its net realizable value for excess or obsolete inventory. The realizable value of inventories is based upon the types and levels of inventories held, forecasted demand, pricing, competition, and changes in technology. The Company's consumable electrodes and biosensors have an eighteen to twenty-four month shelf life. Should current market and economic conditions deteriorate, our actual recoveries could be less than our estimates. Fair Value The carrying amounts of the Company’s accounts receivable, accounts payable, and accrued expenses approximate their fair value at December 31, 2019 and 2018 due to the short-term nature of these assets and liabilities. The Company’s cash equivalents are carried at fair value determined according to the fair value hierarchy described in Note 9. Revenue Recognition 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. Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance. The Company adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, the Company discontinued revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns. Accounts Receivable Accounts receivable are recorded net of the allowance for doubtful accounts receivable. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company reviews the allowance for doubtful accounts and determines the allowance based on an analysis of customer past payment history, product usage activity, and recent communications with the customer. Individual customer balances which are past due and over 90 days outstanding are reviewed individually for collectability. Account balances are written-off against the allowance when the Company feels it is probable the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to its customers. Allowance for doubtful accounts was $70,000 as of December 31, 2019 and 25,000 as of December 31, 2018 . Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company’s financial statements contain certain deferred tax assets, which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. In accordance with the provisions of the Income Taxes topic of the Codification, the Company is required to establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. The Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. Utilization of the NOL and research and development credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that have occurred previously or that could occur in the future, as provided by Section 382 of the Internal Revenue Code of 1986, as well as similar state provisions. Ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. If the Company has experienced a change of control, utilization of its NOL or tax credits carryforwards would be subject to an annual limitation under Section 382. Any limitation may result in expiration of a portion of the NOL or research and development credit carryforwards before utilization. Subsequent ownership changes could further impact the limitation in future years. Further, until a study is completed and any limitation known, no amounts are being presented as an uncertain tax position. A full valuation allowance has been provided against the Company’s NOL carryforwards and research and development credit carryforwards and, if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the balance sheet or statement of operations if an adjustment were required. Management performed a two-step evaluation of all tax positions, ensuring that these tax return positions meet the “more likely than not” recognition threshold and can be measured with sufficient precision to determine the benefit recognized in the financial statements. These evaluations provide management with a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements certain tax positions that the Company has taken or expects to take on income tax returns. Research and Development Costs incurred in research and development are expensed as incurred. Included in research and development costs are wages, benefits, product design consulting, and other operating costs such as facilities, supplies, and overhead directly related to the Company’s research and development efforts. 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 relative fair value of the overall transaction price. A deferred collaboration income liability is recorded when payments are received prior to satisfaction of performance obligations. Product Warranty Costs The Company accrues estimated product warranty costs at the time of sale which are included in cost of sales in the statements of operations. The amount of the accrued warranty liability is based on historical information such as past experience, product failure rates, number of units repaired, and estimated cost of material and labor. The liabilities for product warranty costs of $75,300 and $129,837 at December 31, 2019 and 2018 , respectively, are included in accrued expenses and compensation in the accompanying balance sheets. Fixed Assets and Long-Lived Assets Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful life of each asset. Expenditures for repairs and maintenance are charged to expense as incurred. On disposal, the related assets and accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the Company’s statement of operations. Leasehold improvements are amortized over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Company periodically evaluates the recoverability of its fixed assets and other long-lived assets whenever events or changes in circumstances indicate that an event of impairment may have occurred. This periodic review may result in an adjustment of estimated depreciable lives or asset impairment. When indicators of impairment are present, the carrying values of the asset are evaluated in relation to the assets operating performance and future undiscounted cash flows of the underlying assets. If the future undiscounted cash flows are less than their book value, an impairment may exist. The impairment is measured as the difference between the book value and the fair value of the underlying asset. Fair values are based on estimates of the market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. Accounting for Stock-Based Compensation Stock-based compensation cost is generally recognized ratably over the requisite service period. The Company uses the Black-Scholes option pricing model for determining the fair value of its stock options and amortizes its stock-based compensation expense using the straight-line method. The Black-Scholes model requires certain assumptions that involve judgment. Such assumptions are the expected share price volatility, expected life of options, expected annual dividend yield, and risk-free interest rate (See Note 3 — Stock-Based Compensation). Net Income (Loss) per Common Share Basic and dilutive net income (loss) per common share were as follows: Years Ended December 31, 2019 2018 Net income (loss) applicable to common stockholders $ (3,773,014 ) $ 23,605 Weighted average number of common shares outstanding, basic 968,116 710,457 Dilutive convertible preferred stock — 678,100 Weighted average number of common shares outstanding, dilutive 968,116 1,388,557 Net income (loss) per common share applicable to common stockholders, basic $ (3.90 ) $ 0.03 Net income (loss) per common share applicable to common stockholders, diluted $ (3.90 ) $ 0.02 The following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net income (loss) per common share because their effect was anti-dilutive for each of the periods presented: Years Ended December 31, 2019 2018 Options 38,936 44,199 Warrants 44,534 45,937 Convertible preferred stock 478,184 — Total 561,654 90,136 Advertising and Promotional Costs Advertising and promotional costs are expensed as incurred. Advertising and promotion expense were $1,652,171 and $5,766,982 , in 2019 and 2018 , respectively. Accumulated Other Comprehensive Items For 2019 and 2018 , the Company had no components of other comprehensive income or loss other than net income (loss). Segments The Company operates in one segment for the sale of medical equipment and consumables. Substantially all of the Company’s assets, revenues, and expenses for 2019 and 2018 were located at or derived from operations in the United States. Revenues from sales outside the United States accounted for approximately 13% and 12% of total revenues in 2019 and 2018 , respectively. Risks and Uncertainties The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, customers’ reimbursement from third-party payers, protection of proprietary technology, and compliance with regulations of the FDA, FTC and other governmental agencies. Recently Issued or Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires 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 December 31, 2019: As reported Adjustments Amounts under prior GAAP Assets Prepaid expenses and other current assets $ 652,919 $ 20,910 $ 673,829 Total current assets $ 5,430,814 $ 20,910 $ 5,451,724 Right of use asset $ 1,159,774 $ (1,159,774 ) $ — Other long-term assets $ 29,650 $ 33,645 $ 63,295 Total assets $ 6,893,686 $ (1,105,219 ) $ 5,788,467 Liabilities Lease obligation - current $ 588,546 $ (188,545 ) $ 400,001 Total current liabilities $ 3,446,778 $ (188,545 ) $ 3,258,233 Lease obligation - net of current portion $ 916,674 $ (916,674 ) $ — Total liabilities $ 4,363,452 $ (1,105,219 ) $ 3,258,233 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 Lease obligation - current $ 577,460 $ (577,460 ) $ — 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. In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), a comprehensive new revenue recognition standard that superseded nearly all existing revenue recognition guidance. We adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, we discontinued revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns. The impact of adoption was a credit to accumulated deficit of $0.3 million as of January 1, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company's 2004 Stock Option and Incentive Plan was amended and restated most recently in 2019. At a Special Meeting of Stockholders held on November 12, 2019 , the stockholders of the Company approved the Company’s Eleventh Amended and Restated 2004 Stock Option and Incentive Plan (the “2004 Stock Plan”), which, among other things, increased the number of shares of the Company’s common stock authorized for issuance thereunder by 327,000 shares. The 2004 Stock Plan, among other things, provides for granting of incentive and nonqualified stock option and stock bonus awards to officers, employees and outside consultants. Outstanding options under the 2004 Stock Plan generally vest over four years and terminate 10 years after the grant date, or earlier if the option holder is no longer an executive officer, employee, consultant, advisor or director, as applicable, of the Company. As of December 31, 2019 , 439,890 shares of common stock were authorized for issuance under the 2004 Stock Plan, of which 24,500 shares had been issued, 164,980 shares were subject to outstanding options at a weighted average exercise price of $7.16 per share and 250,410 shares were available for future grant. The Company's 2009 Non-Qualified Inducement Stock Plan (the “2009 Inducement Plan”) is intended to encourage and enable employees, including prospective employees, of the Company upon whose judgment, initiative, and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. The 2009 Inducement Plan, among other things, provides for the granting of awards, including non-qualified stock options, restricted stock, and unrestricted stock. As of December 31, 2019 , 1,250 shares of common stock were authorized for issuance and were available for future grant under the 2009 Inducement Plan. The exercise price of stock options awarded under the 2004 Stock Plan and the 2009 Inducement Plan may not be less than the fair value of the common stock on the date of the option grant. For holders of more than 10% of the Company’s total combined voting power of all classes of stock, incentive stock options may not be granted at less than 110% of the fair value of the Company’s common stock at the date of grant and for a term not to exceed five years. The Company's 2010 Employee Stock Purchase Plan was amended and restated most recently in 2018. The 2010 ESPP authorizes an annual increase on the first day of each of the Company’s fiscal years equal to the lesser of (i) 2,500 shares, (ii) 1 percent of the shares of common stock outstanding on the last day of the immediately preceding fiscal year, or (iii) such lesser number of shares as is determined by the Board. All of the Company’s full-time employees and certain part-time employees are eligible to participate in the 2010 ESPP. For part-time employees to be eligible, they must have customary employment of more than five months in any calendar year and more than 20 hours per week. Employees who, after exercising their rights to purchase shares under the 2010 ESPP, would own shares representing 5% or more of the voting power of the Company’s common stock, are ineligible to participate. Under the 2010 ESPP, participating employees can authorize the Company to withhold up to 10% of their earnings during consecutive six-month payment periods for the purchase of the shares. At the conclusion of each period, participating employees can purchase shares at 85% of the lower of their fair value at the beginning or end of the period. The 2010 ESPP is regarded as a compensatory plan. For the years ended December 31, 2019 and 2018 the Company issued 4,331 and 2,280 shares of its common stock, respectively, under the 2010 ESPP. As of December 31, 2019 , there were 10,946 remaining shares to be issued under the 2010 ESPP. The Company uses the Black-Scholes option pricing model for determining the fair value of shares of common stock issued or to be issued under the 2010 ESPP. The following assumptions are used in determining fair value: The risk-free interest rate assumption is based on the United States Treasury’s constant maturity rate for a six month term (corresponding to the expected option term) on the date the option was granted. The expected dividend yield is zero because the Company does not currently pay dividends nor expects to do so during the expected option term. An expected term of six months is used based on the duration of each plan offering period. The volatility assumption is based on a consideration of stock price volatility over the most recent period of time corresponding to the expected term and is also based on expected future stock price volatility. The weighted average grant-date fair value of stock options used in the calculation of stock-based compensation expense in the accompanying statement of operations for the years ended December 31, 2019 and 2018 is calculated using the following assumptions: Years Ended December 31, 2019 2018 Risk-free interest rate 1.9% 2.2 - 3.0% Expected dividend yield — — Expected option term 10 years 3 - 5 years Volatility 72.4 % 70.0 % The risk-free interest rate assumption is based on the United States Treasury’s constant maturity rate for a three or five year term (corresponding to the expected option term) on the date the option was granted. The expected dividend yield is zero as the Company does not currently pay dividends nor expects to do so during the expected option term. The expected option term of three to five years is estimated based on an analysis of actual option exercises. The volatility assumption is based on daily historical volatility during the time period that corresponds to the expected option term and expected future stock price volatility. The pre-vesting forfeiture rate is based on the historical and projected average turnover rate of employees. A summary of option activity for the year ended December 31, 2019 is presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2018 49,410 $ 40.84 Granted 150,000 4.58 Exercised — — Forfeited (34,420 ) 38.69 Expired (10 ) 19,713.00 Outstanding at December 31, 2019 164,980 $ 7.16 9.3 $ — Vested or expected to vest at December 31, 2019 164,980 $ 7.16 9.3 $ — Exercisable at December 31, 2019 13,086 $ 34.54 2.0 $ — Expected to vest options are determined by applying the pre-vesting forfeiture rate to the total outstanding options. Aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate difference between the closing stock price of the Company’s common stock as of December 31, 2019 , as applicable, and the exercise price for the in-the-money options) that would have been received by the option holders if all the in-the-money options had been exercised on December 31, 2019 . The weighted average per share grant-date fair values of options granted during 2019 and 2018 was $4.58 and $17.10 , respectively. The aggregate intrinsic value of options issued or exercised during 2019 and 2018 was $0 . Total unrecognized stock-based compensation costs related to non-vested stock options was $545,459 , which related to 164,980 shares with a per share weighted fair value of $7.16 as of December 31, 2019 . This unrecognized cost is expected to be recognized over a weighted average period of approximately 1.0 year. Cash received from option exercises and purchases under the 2004 ESPP and the 2010 ESPP for 2019 and 2018 , was $15,106 and $18,618 , respectively. The Company issues new shares upon option exercises, purchases under the Company’s ESPPs, and vesting of restricted stock. The Company recorded stock-based compensation expense of $190,331 and $446,077 for 2019 and 2018 , respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: December 31, 2019 2018 Purchased components $ 720,209 $ 1,767,674 Finished goods 443,505 1,094,190 $ 1,163,714 $ 2,861,864 The Company recorded inventory and supplier excess commitment charges of $2,595,884 (see note 13 - Business Restructuring) and zero for the years ended December 31, 2019 and 2018, respectively, to reflect its estimated net realizable value. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets Fixed assets consist of the following: Estimated Useful Life (Years) December 31, 2019 2018 Computer and laboratory equipment 3 $ 905,966 $ 857,889 Furniture and equipment 3 241,413 241,413 Production equipment 7 216,000 327,000 Leasehold improvements * 141,485 141,485 1,504,864 1,567,787 Less – accumulated depreciation (1,231,416 ) (1,160,448 ) $ 273,448 $ 407,339 * Lesser of life of lease or estimated useful life. Depreciation expense was $124,012 and $169,712 for 2019 and 2018 , respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses and Compensation Accrued expenses and compensation consist of the following for the years ended December 31, 2019 and 2018: December 31, 2019 2018 Technology fees $ 450,000 $ 450,000 Supplier excess commitments — 160,000 Professional services 454,000 391,000 Compensation 62,322 223,756 Advertising and promotion 68,000 171,000 Warranty 75,300 129,837 Other 333,952 133,580 $ 1,443,574 $ 1,659,173 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Current income tax expense (benefit) attributable to continuing operations was zero for the years ended December 31, 2019 and 2018 . The Company’s effective income tax rate differs from the statutory federal income tax rate as follows for the years ended December 31, 2019 and 2018 . Years Ended December 31, 2019 2018 Federal tax provision (benefit) rate (21.0 )% (21.0 )% State tax provision, net of federal provision 19.9 (19.6 ) Permanent items 1.1 (315.0 ) Federal research and development credits — 659.2 382 Limitation - NOL and tax credits 861.5 — Change in statutory tax rate — — Valuation allowance (861.5 ) (303.6 ) Effective income tax rate — — The Company’s deferred tax assets consist of the following: December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 1,592,993 $ 31,239,750 Research and development credit carryforwards — 2,599,358 Accrued expenses 96,030 965,191 Inventory reserve 306,855 — Stock-based compensation 222,420 227,843 Other (9,455 ) 9,158 Total gross deferred tax assets 2,208,843 35,041,300 Valuation allowance (2,208,843 ) (35,041,300 ) Net deferred tax assets $ — $ — At December 31, 2019 , the Company has federal and state net operating loss carryforwards (“NOL”) of $147.3 million and $50.9 million , respectively, as well as federal and state tax credits of $1.7 million and $0.9 million , respectively, which may be available to reduce future taxable income and related taxes. This amount includes tax benefits of $2.5 million and $75,000 attributable to NOL and tax credit carryforwards, respectively, that result from the exercise of employee stock options. The Company experienced an ownership change in 2019, which significantly reduced the tax benefits associated with these carryforwards under Internal Revenue Code Sections 382 and 383. The federal NOLs, the state NOLs, and the federal and state research and development credits each begin to expire in 2020 . In accordance with the provisions of the Income Taxes topic of the Codification, the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which are comprised principally of net operating losses. Management has determined that it is more likely than not that the Company will not recognize the benefits of federal and state deferred tax assets and, as a result, a valuation allowance of $2.2 million and $35.0 million has been established at December 31, 2019 and 2018 , respectively. The Company experienced a change in control during 2019. Accordingly, utilization of their respective consolidated and/ or separately computed NOL's and/ or tax credit carryforwards is subject to an annual limitation for federal tax purposes under Internal Revenue Code Sections 382 and 383. Due to this change in control, the Company estimates that approximately $143,300,000 of federal NOL's and/or tax credit carryforwards are effectively eliminated according to the Internal Revenue Code Sections 382 and 383 limitations. A large portion of state NOLs and/ or tax credit carry forwards are also eliminated. As a result of these eliminations, the Company's federal net operating loss and credit carryforwards are reduced to approximately $5,700,000 and $0 respectively, before valuation allowance. State credit carryforwards are reduced to zero. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. There are currently no pending income tax examinations. The Company’s tax years are still open under statute from December 31, 2016 to the present. Earlier years may be examined to the extent that tax credit or net operating loss carryforwards are used in future periods. The Company’s policy is to record interest and penalties related to income taxes as part of its income tax provision. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company's lease on its Woburn, Massachusetts manufacturing facilities (the “Woburn Lease”) extends through September 2025 at a monthly base rent of $13,846 and with 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 7 -year lease is approximately $41,074 . During 2019 the Company consolidated its operations within the Woburn facility and is offering the Waltham facility for sublet. At December 31, 2019, the Company had an impairment charge of $400,000 that reduced the right of use asset for idle facility costs. 8. Commitments and Contingencies - (continued) The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of December 31, 2019 : 2020 $ 641,193 2021 653,164 2022 247,347 2023 165,785 2024 165,785 2025 117,431 Total minimum lease payments $ 1,990,705 Weighted-average discount rate, 14.7% $ 485,485 Lease obligation, current portion 588,546 Lease obligation, net of current portion 916,674 $ 1,990,705 Total recorded rent expense was $664,098 and $627,732 , for 2019 and 2018 , respectively. The Company records rent expense on its facility leases on a straight-line basis over the lease term. Weighted average remaining operating lease term was 3.5 years as of December 31, 2019. Other Contingencies As previously disclosed, in 2017 we received a Civil Investigative Demand (CID) from the FTC. The CID requested information in connection with an FTC review for compliance of our representations about Quell with Sections 5 and 12 of the FTC Act. During 2017, 2018 and 2019, we responded to requests for information by FTC. We met with FTC on multiple occasions in 2019 to discuss our responses. Currently, we are actively engaged with FTC to achieve resolution of this matter. This would include a consent order that, among other provisions, would prohibit us from making certain claims in our advertising about Quell, and a monetary judgment that would be payable to the FTC. Final resolution of this matter is uncertain, and terms related to potential resolution cannot be reasonably estimated at this time. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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. December 31, 2019 Fair Value Measurements at December 31, 2019 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 698,807 $ 698,807 $ — $ — Total $ 698,807 $ 698,807 $ — $ — December 31, 2018 Fair Value Measurements at December 31, 2018 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 4,284,928 $ 4,284,928 $ — $ — Total $ 4,284,928 $ 4,284,928 $ — $ — |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plan | Retirement Plan The Company has established a 401(k) defined contribution savings plan for its employees who meet certain service period and age requirements. Contributions are permitted up to the maximum allowed under the Internal Revenue Code of each covered employee’s salary. The savings plan permits the Company to contribute at its discretion. In 2019 and 2018 the Company made no contributions to the plan. |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility The Company is party to a Loan and Security Agreement, or the Credit Facility, with a bank. As of December 31, 2019 , the Credit Facility permitted the Company to borrow up to $2.5 million on a revolving basis. The Credit Facility was subsequently amended, most recently on January 23, 2020 and extended until April 30, 2020 . The facility was lowered to $250,000 and secured by a cash pledge in the same amount. 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 also includes traditional lending and reporting covenants. These include certain financial covenants applicable to liquidity that are to be maintained by the Company. As of December 31, 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 landlords of the Company’s facilities. Consequently, the amount available for borrowing under the Credit Facility as of December 31, 2019 was approximately $2.3 million . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred stock and convertible preferred stock consist of the following: December 31, 2019 2018 Preferred stock, $0.001 par value; 5,000,000 shares authorized at December 31, 2019 and 2018; no shares issued and outstanding at December 31, 2019 and 2018 $ — $ — Series B convertible preferred stock, $0.001 par value, 147,000 shares designated at December 31, 2019 and 2018, and 200 shares issued and outstanding at December 31, 2019 and 2018, respectively 1 1 Series D convertible preferred stock, $0.001 par value, 21,300 shares designated at December 31, 2019 and 2018, and zero and 14,052.93 shares issued and outstanding at December 31, 2019 and 2018, respectively — 14 Series E convertible preferred stock, $0.001 par value, 7,000 designated at December 31, 2019 and 2018, and zero and 3,260.70 shares issued and outstanding at December 31, 2019 and 2018, respectively — 3 Series F convertible preferred stock, $0.001 par value, 10,621 shares designated at December 31, 2019 and 2018, and no shares issued and outstanding at December 31, 2019 and 2018, respectively — — Preferred stock activity As of December 31, 2019 , 200.00 shares of Series B Preferred Stock remained outstanding. In 2019 , 14,052.93 shares of the Series D Preferred Stock were converted into a total of 534,333 shares of Common Stock. As of December 31, 2019 , zero shares of Series D Preferred Stock remained outstanding. In 2019 , 3,260.70 shares of the Series F Preferred Stock were converted into a total of 123,981 shares of Common Stock. As of December 31, 2019, zero shares of Series E Preferred Stock remained outstanding. As of December 31, 2019 , zero shares of Series F Preferred Stock remained outstanding. In 2018, 300.00 shares of the Series B Preferred Stock were converted into a total of 93 shares of Common Stock. As of December 31, 2018, 200.00 shares of Series B Preferred Stock remained outstanding. In 2018, 3,739.3 shares of the Series E Preferred Stock were converted into a total of 142,178 shares of Common Stock. As of December 31, 2018, 3,260.70 shares of Series E Preferred Stock remained outstanding. In 2018, 7,927.05 shares of the Series F Preferred Stock were converted into a total of 301,409 shares of Common Stock. As of December 31, 2018, zero shares of Series F Preferred Stock remained outstanding. Other equity activity In 2018, the Company issued shares of fully vested common stock in partial settlement of management incentive compensation. The 2018 issuance totaled 21,479 shares with a value of $ 294,264 reflecting the $13.70 closing price of the Company’s common stock as reported on the Nasdaq Capital Market on April 12, 2018. As of December 31, 2019 , the Company had 25,000,000 shares of common stock authorized and 1,400,674 shares issued and outstanding. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are not entitled to receive dividends unless declared by the Board of Directors. At December 31, 2019 , the Company has reserved authorized shares of common stock for future issuance as follows: Warrants 41,627 Outstanding stock options 164,980 Possible future issuance under inducement plan 1,250 Possible future issuance under stock option plans 250,410 Possible future issuance under employee stock purchase plan 10,946 Total 469,213 On November 18, 2019, the Company effected a 1-for-10 reverse stock split of its Common Stock , or the Reverse Stock Split. The par value and other terms of the common stock were not effected by the Reverse Stock Split. The Company’s shares outstanding immediately prior to the split totaled 9,781,755 , which were subsequently adjusted to 978,158 shares outstanding. No fractional shares will be issued in connection with the reverse stock split. Stockholders who otherwise would be entitled to receive fractional shares will receive payment in cash in lieu of any such resulting fractional shares of common stock as the post-reverse split amounts of common stock will be rounded down to the nearest full share. Share, per share, and stock option amounts for all periods presented within the financial statements contained in the Annual Report on Form 10-K have been retroactively adjusted to reflect the Reverse Stock Split. |
Reverse Stock Split
Reverse Stock Split | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Reverse Stock Split | Stockholders’ Equity Preferred stock and convertible preferred stock consist of the following: December 31, 2019 2018 Preferred stock, $0.001 par value; 5,000,000 shares authorized at December 31, 2019 and 2018; no shares issued and outstanding at December 31, 2019 and 2018 $ — $ — Series B convertible preferred stock, $0.001 par value, 147,000 shares designated at December 31, 2019 and 2018, and 200 shares issued and outstanding at December 31, 2019 and 2018, respectively 1 1 Series D convertible preferred stock, $0.001 par value, 21,300 shares designated at December 31, 2019 and 2018, and zero and 14,052.93 shares issued and outstanding at December 31, 2019 and 2018, respectively — 14 Series E convertible preferred stock, $0.001 par value, 7,000 designated at December 31, 2019 and 2018, and zero and 3,260.70 shares issued and outstanding at December 31, 2019 and 2018, respectively — 3 Series F convertible preferred stock, $0.001 par value, 10,621 shares designated at December 31, 2019 and 2018, and no shares issued and outstanding at December 31, 2019 and 2018, respectively — — Preferred stock activity As of December 31, 2019 , 200.00 shares of Series B Preferred Stock remained outstanding. In 2019 , 14,052.93 shares of the Series D Preferred Stock were converted into a total of 534,333 shares of Common Stock. As of December 31, 2019 , zero shares of Series D Preferred Stock remained outstanding. In 2019 , 3,260.70 shares of the Series F Preferred Stock were converted into a total of 123,981 shares of Common Stock. As of December 31, 2019, zero shares of Series E Preferred Stock remained outstanding. As of December 31, 2019 , zero shares of Series F Preferred Stock remained outstanding. In 2018, 300.00 shares of the Series B Preferred Stock were converted into a total of 93 shares of Common Stock. As of December 31, 2018, 200.00 shares of Series B Preferred Stock remained outstanding. In 2018, 3,739.3 shares of the Series E Preferred Stock were converted into a total of 142,178 shares of Common Stock. As of December 31, 2018, 3,260.70 shares of Series E Preferred Stock remained outstanding. In 2018, 7,927.05 shares of the Series F Preferred Stock were converted into a total of 301,409 shares of Common Stock. As of December 31, 2018, zero shares of Series F Preferred Stock remained outstanding. Other equity activity In 2018, the Company issued shares of fully vested common stock in partial settlement of management incentive compensation. The 2018 issuance totaled 21,479 shares with a value of $ 294,264 reflecting the $13.70 closing price of the Company’s common stock as reported on the Nasdaq Capital Market on April 12, 2018. As of December 31, 2019 , the Company had 25,000,000 shares of common stock authorized and 1,400,674 shares issued and outstanding. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are not entitled to receive dividends unless declared by the Board of Directors. At December 31, 2019 , the Company has reserved authorized shares of common stock for future issuance as follows: Warrants 41,627 Outstanding stock options 164,980 Possible future issuance under inducement plan 1,250 Possible future issuance under stock option plans 250,410 Possible future issuance under employee stock purchase plan 10,946 Total 469,213 On November 18, 2019, the Company effected a 1-for-10 reverse stock split of its Common Stock , or the Reverse Stock Split. The par value and other terms of the common stock were not effected by the Reverse Stock Split. The Company’s shares outstanding immediately prior to the split totaled 9,781,755 , which were subsequently adjusted to 978,158 shares outstanding. No fractional shares will be issued in connection with the reverse stock split. Stockholders who otherwise would be entitled to receive fractional shares will receive payment in cash in lieu of any such resulting fractional shares of common stock as the post-reverse split amounts of common stock will be rounded down to the nearest full share. Share, per share, and stock option amounts for all periods presented within the financial statements contained in the Annual Report on Form 10-K have been retroactively adjusted to reflect the Reverse Stock Split. |
Management Retention and Incent
Management Retention and Incentive Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Management Retention and Incentive Plan | Management Retention and Incentive Plan Under the Company’s Management Retention and Incentive Plan (the “Plan”), a portion of the consideration payable upon a change in control transaction, as defined in the Plan and its amendments, would be paid in cash to certain executive officers and key employees and recorded as compensation expense within the Statement of Operations during the period in which the change of control transaction occurs. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | Schedule II — Valuation and Qualifying Accounts Description Balance at Beginning of Period Charged to costs and expenses Charged to other accounts Recoveries/ (Deductions) Balance at End of Period December 31, 2019 Allowance for Doubtful Accounts $ 25,000 49,361 — (4,361 ) $ 70,000 Deferred Tax Asset Valuation Allowance 35,041,300 1,535,093 — (34,367,550 ) (1) 2,208,843 Accrued Product Returns 1,101,658 — (412,658 ) 689,000 Warranty Reserve 129,837 — — (54,537 ) 75,300 December 31, 2018 Allowance for Doubtful Accounts $ 25,000 8,374 — (8,374 ) $ 25,000 Deferred Tax Asset Valuation Allowance 35,331,314 269,241 — (559,255 ) (1) 35,041,300 Accrued Product Returns 1,486,406 — — (384,748 ) 1,101,658 Warranty Reserve 127,361 2,476 — — 129,837 (1) Expiration of Federal and State Net Operating Loss Carryforwards and other reductions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with United States generally accepted accounting principles 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. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances and regularly assesses these estimates, but actual results could differ materially from these estimates. Effects of changes in estimates are recorded in the period in which they occur. | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. Cash equivalents are recorded at cost which approximates fair value. The Company invests cash primarily in a money market account and other investments which management believes are subject to minimal credit and market risk. | |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents in bank deposit accounts and trade receivables. The Company invests its funds in highly rated institutions and limits its investment in any individual account so that they do not exceed FDIC limits. The Company has not experienced significant losses related to cash and cash equivalents and does not believe it is exposed to any significant credit risks relating to its cash and cash equivalents. At December 31, 2019 and 2018 , two customers accounted for 42% and 45% of accounts receivable, respectively. One customer accounted for 19% of revenues for the year ended December 31, 2019 and two customers accounted for 23% of revenues, for the year ended December 31, 2018 . The Company relies on in-house assembly and four third-party manufacturers to manufacture the major portion of its current products and product components. The disruption or termination of the supply of these products or a significant increase in the cost of these products from these sources could have an adverse effect on the Company’s business, financial position, and results of operations. | |
Inventories | Inventories | |
Fair Value | Fair Value The carrying amounts of the Company’s accounts receivable, accounts payable, and accrued expenses approximate their fair value at December 31, 2019 and 2018 due to the short-term nature of these assets and liabilities. The Company’s cash equivalents are carried at fair value determined according to the fair value hierarchy described in Note 9. | |
Revenue Recognition | Revenue Recognition 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. Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance. The Company adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, the Company discontinued revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns. | |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded net of the allowance for doubtful accounts receivable. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company reviews the allowance for doubtful accounts and determines the allowance based on an analysis of customer past payment history, product usage activity, and recent communications with the customer. Individual customer balances which are past due and over 90 days outstanding are reviewed individually for collectability. Account balances are written-off against the allowance when the Company feels it is probable the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to its customers. Allowance for doubtful accounts was $70,000 as of December 31, 2019 and 25,000 as of December 31, 2018 . | |
Income Taxes | Income Taxes The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company’s financial statements contain certain deferred tax assets, which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. In accordance with the provisions of the Income Taxes topic of the Codification, the Company is required to establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. The Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. Utilization of the NOL and research and development credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that have occurred previously or that could occur in the future, as provided by Section 382 of the Internal Revenue Code of 1986, as well as similar state provisions. Ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. If the Company has experienced a change of control, utilization of its NOL or tax credits carryforwards would be subject to an annual limitation under Section 382. Any limitation may result in expiration of a portion of the NOL or research and development credit carryforwards before utilization. Subsequent ownership changes could further impact the limitation in future years. Further, until a study is completed and any limitation known, no amounts are being presented as an uncertain tax position. A full valuation allowance has been provided against the Company’s NOL carryforwards and research and development credit carryforwards and, if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the balance sheet or statement of operations if an adjustment were required. Management performed a two-step evaluation of all tax positions, ensuring that these tax return positions meet the “more likely than not” recognition threshold and can be measured with sufficient precision to determine the benefit recognized in the financial statements. These evaluations provide management with a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements certain tax positions that the Company has taken or expects to take on income tax returns. | |
Research and Development | Research and Development Costs incurred in research and development are expensed as incurred. Included in research and development costs are wages, benefits, product design consulting, and other operating costs such as facilities, supplies, and overhead directly related to the Company’s research and development efforts. | |
Collaborative Arrangement, Accounting Policy [Policy Text Block] | 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 relative fair value of the overall transaction price. A deferred collaboration income liability is recorded when payments are received prior to satisfaction of performance obligations. | |
Product Warranty Costs | Product Warranty Costs The Company accrues estimated product warranty costs at the time of sale which are included in cost of sales in the statements of operations. The amount of the accrued warranty liability is based on historical information such as past experience, product failure rates, number of units repaired, and estimated cost of material and labor. The liabilities for product warranty costs of $75,300 and $129,837 at December 31, 2019 and 2018 , respectively, are included in accrued expenses and compensation in the accompanying balance sheets. | |
Fixed Assets and Long-Lived Assets | Fixed Assets and Long-Lived Assets Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful life of each asset. Expenditures for repairs and maintenance are charged to expense as incurred. On disposal, the related assets and accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the Company’s statement of operations. Leasehold improvements are amortized over the shorter of the estimated useful life of the improvement or the remaining term of the lease. The Company periodically evaluates the recoverability of its fixed assets and other long-lived assets whenever events or changes in circumstances indicate that an event of impairment may have occurred. This periodic review may result in an adjustment of estimated depreciable lives or asset impairment. When indicators of impairment are present, the carrying values of the asset are evaluated in relation to the assets operating performance and future undiscounted cash flows of the underlying assets. If the future undiscounted cash flows are less than their book value, an impairment may exist. The impairment is measured as the difference between the book value and the fair value of the underlying asset. Fair values are based on estimates of the market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. | |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation Stock-based compensation cost is generally recognized ratably over the requisite service period. The Company uses the Black-Scholes option pricing model for determining the fair value of its stock options and amortizes its stock-based compensation expense using the straight-line method. The Black-Scholes model requires certain assumptions that involve judgment. Such assumptions are the expected share price volatility, expected life of options, expected annual dividend yield, and risk-free interest rate (See Note 3 — Stock-Based Compensation). | |
Net Loss per Common Share | Net Income (Loss) per Common Share Basic and dilutive net income (loss) per common share were as follows: Years Ended December 31, 2019 2018 Net income (loss) applicable to common stockholders $ (3,773,014 ) $ 23,605 Weighted average number of common shares outstanding, basic 968,116 710,457 Dilutive convertible preferred stock — 678,100 Weighted average number of common shares outstanding, dilutive 968,116 1,388,557 Net income (loss) per common share applicable to common stockholders, basic $ (3.90 ) $ 0.03 Net income (loss) per common share applicable to common stockholders, diluted $ (3.90 ) $ 0.02 The following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net income (loss) per common share because their effect was anti-dilutive for each of the periods presented: Years Ended December 31, 2019 2018 Options 38,936 44,199 Warrants 44,534 45,937 Convertible preferred stock 478,184 — Total 561,654 90,136 | |
Advertising and Promotional Costs | Advertising and Promotional Costs Advertising and promotional costs are expensed as incurred. Advertising and promotion expense were $1,652,171 and $5,766,982 , in 2019 and 2018 , respectively. | |
Accumulated Other Comprehensive Items | Accumulated Other Comprehensive Items For 2019 and 2018 , the Company had no components of other comprehensive income or loss other than net income (loss). | |
Segments | Segments The Company operates in one segment for the sale of medical equipment and consumables. Substantially all of the Company’s assets, revenues, and expenses for 2019 and 2018 were located at or derived from operations in the United States. Revenues from sales outside the United States accounted for approximately 13% and 12% of total revenues in 2019 and 2018 , respectively. | |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, customers’ reimbursement from third-party payers, protection of proprietary technology, and compliance with regulations of the FDA, FTC and other governmental agencies. | |
Recently Issued or Adopted Accounting Pronouncements | Recently Issued or Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires 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 December 31, 2019: As reported Adjustments Amounts under prior GAAP Assets Prepaid expenses and other current assets $ 652,919 $ 20,910 $ 673,829 Total current assets $ 5,430,814 $ 20,910 $ 5,451,724 Right of use asset $ 1,159,774 $ (1,159,774 ) $ — Other long-term assets $ 29,650 $ 33,645 $ 63,295 Total assets $ 6,893,686 $ (1,105,219 ) $ 5,788,467 Liabilities Lease obligation - current $ 588,546 $ (188,545 ) $ 400,001 Total current liabilities $ 3,446,778 $ (188,545 ) $ 3,258,233 Lease obligation - net of current portion $ 916,674 $ (916,674 ) $ — Total liabilities $ 4,363,452 $ (1,105,219 ) $ 3,258,233 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 Lease obligation - current $ 577,460 $ (577,460 ) $ — 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. In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), a comprehensive new revenue recognition standard that superseded nearly all existing revenue recognition guidance. We adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, we discontinued revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns. The impact of adoption was a credit to accumulated deficit of $0.3 million as of January 1, 2018. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of December 31, 2019: As reported Adjustments Amounts under prior GAAP Assets Prepaid expenses and other current assets $ 652,919 $ 20,910 $ 673,829 Total current assets $ 5,430,814 $ 20,910 $ 5,451,724 Right of use asset $ 1,159,774 $ (1,159,774 ) $ — Other long-term assets $ 29,650 $ 33,645 $ 63,295 Total assets $ 6,893,686 $ (1,105,219 ) $ 5,788,467 Liabilities Lease obligation - current $ 588,546 $ (188,545 ) $ 400,001 Total current liabilities $ 3,446,778 $ (188,545 ) $ 3,258,233 Lease obligation - net of current portion $ 916,674 $ (916,674 ) $ — Total liabilities $ 4,363,452 $ (1,105,219 ) $ 3,258,233 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 Lease obligation - current $ 577,460 $ (577,460 ) $ — 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 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic and dilutive net income (loss) per common share were as follows: Years Ended December 31, 2019 2018 Net income (loss) applicable to common stockholders $ (3,773,014 ) $ 23,605 Weighted average number of common shares outstanding, basic 968,116 710,457 Dilutive convertible preferred stock — 678,100 Weighted average number of common shares outstanding, dilutive 968,116 1,388,557 Net income (loss) per common share applicable to common stockholders, basic $ (3.90 ) $ 0.03 Net income (loss) per common share applicable to common stockholders, diluted $ (3.90 ) $ 0.02 |
Schedule of Anti-Dilutive Securities | e following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net income (loss) per common share because their effect was anti-dilutive for each of the periods presented: Years Ended December 31, 2019 2018 Options 38,936 44,199 Warrants 44,534 45,937 Convertible preferred stock 478,184 — Total 561,654 90,136 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Weighted Average Grant-Date Fair Value of Stock Options | The weighted average grant-date fair value of stock options used in the calculation of stock-based compensation expense in the accompanying statement of operations for the years ended December 31, 2019 and 2018 is calculated using the following assumptions: Years Ended December 31, 2019 2018 Risk-free interest rate 1.9% 2.2 - 3.0% Expected dividend yield — — Expected option term 10 years 3 - 5 years Volatility 72.4 % 70.0 % |
Summary of Option Activity | A summary of option activity for the year ended December 31, 2019 is presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2018 49,410 $ 40.84 Granted 150,000 4.58 Exercised — — Forfeited (34,420 ) 38.69 Expired (10 ) 19,713.00 Outstanding at December 31, 2019 164,980 $ 7.16 9.3 $ — Vested or expected to vest at December 31, 2019 164,980 $ 7.16 9.3 $ — Exercisable at December 31, 2019 13,086 $ 34.54 2.0 $ — |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: December 31, 2019 2018 Purchased components $ 720,209 $ 1,767,674 Finished goods 443,505 1,094,190 $ 1,163,714 $ 2,861,864 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed assets consist of the following: Estimated Useful Life (Years) December 31, 2019 2018 Computer and laboratory equipment 3 $ 905,966 $ 857,889 Furniture and equipment 3 241,413 241,413 Production equipment 7 216,000 327,000 Leasehold improvements * 141,485 141,485 1,504,864 1,567,787 Less – accumulated depreciation (1,231,416 ) (1,160,448 ) $ 273,448 $ 407,339 * Lesser of life of lease or estimated useful life. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Compensation and Expenses | Accrued expenses and compensation consist of the following for the years ended December 31, 2019 and 2018: December 31, 2019 2018 Technology fees $ 450,000 $ 450,000 Supplier excess commitments — 160,000 Professional services 454,000 391,000 Compensation 62,322 223,756 Advertising and promotion 68,000 171,000 Warranty 75,300 129,837 Other 333,952 133,580 $ 1,443,574 $ 1,659,173 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Effective Income Tax Rate to Statutory Federal Rate | The Company’s effective income tax rate differs from the statutory federal income tax rate as follows for the years ended December 31, 2019 and 2018 . Years Ended December 31, 2019 2018 Federal tax provision (benefit) rate (21.0 )% (21.0 )% State tax provision, net of federal provision 19.9 (19.6 ) Permanent items 1.1 (315.0 ) Federal research and development credits — 659.2 382 Limitation - NOL and tax credits 861.5 — Change in statutory tax rate — — Valuation allowance (861.5 ) (303.6 ) Effective income tax rate — — |
Schedule of Deferred Tax Assets | The Company’s deferred tax assets consist of the following: December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 1,592,993 $ 31,239,750 Research and development credit carryforwards — 2,599,358 Accrued expenses 96,030 965,191 Inventory reserve 306,855 — Stock-based compensation 222,420 227,843 Other (9,455 ) 9,158 Total gross deferred tax assets 2,208,843 35,041,300 Valuation allowance (2,208,843 ) (35,041,300 ) Net deferred tax assets $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under Noncancelable Operating Leases | December 31, 2019 : 2020 $ 641,193 2021 653,164 2022 247,347 2023 165,785 2024 165,785 2025 117,431 Total minimum lease payments $ 1,990,705 Weighted-average discount rate, 14.7% $ 485,485 Lease obligation, current portion 588,546 Lease obligation, net of current portion 916,674 $ 1,990,705 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | December 31, 2019 Fair Value Measurements at December 31, 2019 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 698,807 $ 698,807 $ — $ — Total $ 698,807 $ 698,807 $ — $ — December 31, 2018 Fair Value Measurements at December 31, 2018 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 4,284,928 $ 4,284,928 $ — $ — Total $ 4,284,928 $ 4,284,928 $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Preferred stock and convertible preferred stock | Preferred stock and convertible preferred stock consist of the following: December 31, 2019 2018 Preferred stock, $0.001 par value; 5,000,000 shares authorized at December 31, 2019 and 2018; no shares issued and outstanding at December 31, 2019 and 2018 $ — $ — Series B convertible preferred stock, $0.001 par value, 147,000 shares designated at December 31, 2019 and 2018, and 200 shares issued and outstanding at December 31, 2019 and 2018, respectively 1 1 Series D convertible preferred stock, $0.001 par value, 21,300 shares designated at December 31, 2019 and 2018, and zero and 14,052.93 shares issued and outstanding at December 31, 2019 and 2018, respectively — 14 Series E convertible preferred stock, $0.001 par value, 7,000 designated at December 31, 2019 and 2018, and zero and 3,260.70 shares issued and outstanding at December 31, 2019 and 2018, respectively — 3 Series F convertible preferred stock, $0.001 par value, 10,621 shares designated at December 31, 2019 and 2018, and no shares issued and outstanding at December 31, 2019 and 2018, respectively — — |
Reserved Authorized Shares of Common Stock for Future Issuance | At December 31, 2019 , the Company has reserved authorized shares of common stock for future issuance as follows: Warrants 41,627 Outstanding stock options 164,980 Possible future issuance under inducement plan 1,250 Possible future issuance under stock option plans 250,410 Possible future issuance under employee stock purchase plan 10,946 Total 469,213 |
Business Restructuring Business
Business Restructuring Business Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The severance and relocation obligations relating to the business restructuring outstanding as of December 31, 2019 are presented below. December 31, 2019 Severance obligations: Provision 224,773 Amounts paid out (224,773 ) Total — Relocation costs: Provision 100,000 Amounts paid out (100,000 ) Total — Impairment charge for idle facility 400,000 Total 400,000 Balance - December 31, 2019 400,000 |
Description of Business and B_2
Description of Business and Basis of Presentation - Additional Information (Detail) - USD ($) | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Organization And Basis Of Presentation [Line Items] | |||
Substantial Doubt about Going Concern, within One Year [true false] | true | ||
Net proceed from offering common stock and warrants | $ 15,106 | $ 18,618 | |
Accumulated deficit | 194,789,605 | 191,016,591 | $ 194,789,605 |
Cash and cash equivalents | 3,126,206 | $ 6,780,429 | 3,126,206 |
Attainment Of Development Milestone [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Proceeds from Collaborators | 20.5 | ||
Attainment of Commercialization Milestone [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Potential Proceeds From Collaborators | $ 4.5 | $ 4.5 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Concentration Risk [Line Items] | |||
Number of Operating Segments | 1 | ||
Allowance for doubtful accounts receivable, current | $ 70,000 | $ 25,000 | |
Collaboration Income | 7,716,667 | 12,255,704 | |
Accumulated deficit | (194,789,605) | (191,016,591) | |
Deferred Collaboration Income | 0 | 1,956,522 | |
Marketing and Advertising Expense [Abstract] | |||
Advertising and promotion expense | $ 1,652,171 | $ 5,766,982 | |
Segment Reporting [Abstract] | |||
Revenues from sales outside the United States, percentage | 13.00% | 12.00% | |
Product Warranties Disclosures [Abstract] | |||
Liabilities for product warranty costs | $ 75,300 | $ 129,837 | |
Accounts Receivable [Member] | Two Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 42.00% | 45.00% | |
Revenue Benchmark [Member] | Two Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 23.00% | ||
Revenue Benchmark [Member] | One Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 19.00% | ||
Accounting Standards Update 2016-02 [Member] | |||
Concentration Risk [Line Items] | |||
Long Term Assets and Total Liabilities | $ 1,900,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Net Loss per Common Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||
Potentially dilutive common stock equivalents excluded from calculation of diluted net income per common share | 561,654 | 90,136 |
Convertible preferred stock | ||
Class of Stock [Line Items] | ||
Potentially dilutive common stock equivalents excluded from calculation of diluted net income per common share | 478,184 | 0 |
Options | ||
Class of Stock [Line Items] | ||
Potentially dilutive common stock equivalents excluded from calculation of diluted net income per common share | 38,936 | 44,199 |
Warrants | ||
Class of Stock [Line Items] | ||
Potentially dilutive common stock equivalents excluded from calculation of diluted net income per common share | 44,534 | 45,937 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net Income (Loss) Available to Common Stockholders, Diluted | $ (3,773,014) | $ 23,605 |
Weighted Average Number of Shares Outstanding, Basic | 968,116 | 710,457 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 0 | 678,100 |
Weighted Average Number of Shares Outstanding, Diluted | 968,116 | 1,388,557 |
Earnings Per Share, Basic | $ (3.90) | $ 0.03 |
Earnings Per Share, Diluted | $ (3.90) | $ 0.02 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Impact of ASU 2014-09 (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 9,272,522 | $ 16,090,138 | ||
Accounts receivable, net of allowances of $70,000 and $25,000 at December 31, 2019 and 2018, respectively | 298,967 | 1,082,957 | ||
Prepaid Expense and Other Assets, Current | 652,919 | 860,915 | ||
Assets, Current | 5,430,814 | 11,586,165 | ||
Accrued Sales Return provisions | 689,000 | 1,101,658 | ||
Liabilities, Current | 3,446,778 | 6,592,897 | ||
Accumulated deficit | (194,789,605) | (191,016,591) | ||
Stockholders' Equity Attributable to Parent | 2,530,234 | 6,097,811 | $ 5,017,389 | |
Cost of revenues | 7,026,899 | 8,707,082 | ||
Gross Profit | 2,245,623 | 7,383,056 | ||
Net Income (Loss) Available to Common Stockholders, Diluted | $ (3,773,014) | $ 23,605 | ||
Earnings Per Share, Basic | $ (3.90) | $ 0.03 | ||
Earnings Per Share, Diluted | $ (3.90) | $ 0.02 | ||
ASU 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accumulated deficit | $ 300,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Impact of ASU 2016-02 (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Liability, Current | $ (588,546) | $ (577,460) |
Liabilities, Current | (3,446,778) | (6,592,897) |
Assets | (6,893,686) | (13,991,880) |
Other long-term assets | 29,650 | 30,314 |
Operating Lease, Right-of-Use Asset | (1,159,774) | (1,968,062) |
Assets, Current | 5,430,814 | 11,586,165 |
Operating Lease, Liability, Noncurrent | (916,674) | (1,301,172) |
Liabilities | (4,363,452) | (7,894,069) |
Prepaid Expense and Other Assets, Current | 652,919 | 860,915 |
CalculatedUnderRevenueGuidanceInEffectBeforeTopic842 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Liability, Current | (400,001) | 0 |
Liabilities, Current | (3,258,233) | (6,015,437) |
Assets | (5,788,467) | (12,113,248) |
Other long-term assets | 63,295 | 74,892 |
Operating Lease, Right-of-Use Asset | 0 | 0 |
Assets, Current | 5,451,724 | 11,631,017 |
Operating Lease, Liability, Noncurrent | 0 | 0 |
Liabilities | (3,258,233) | (6,015,437) |
Prepaid Expense and Other Assets, Current | 673,829 | 905,767 |
DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic842 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Liability, Current | (188,545) | (577,460) |
Liabilities, Current | (188,545) | (577,460) |
Assets | (1,105,219) | (1,878,632) |
Other long-term assets | 33,645 | 44,578 |
Operating Lease, Right-of-Use Asset | (1,159,774) | (1,968,062) |
Assets, Current | 20,910 | 44,852 |
Operating Lease, Liability, Noncurrent | (916,674) | (1,301,172) |
Liabilities | (1,105,219) | (1,878,632) |
Prepaid Expense and Other Assets, Current | $ 20,910 | $ 44,852 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Nov. 12, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding (in shares) | 164,980 | 49,410 | |
Weighted average exercise price (in usd per share) | $ 7.16 | $ 40.84 | |
Weighted average grant-date fair value of options granted (in usd per share) | $ 4.58 | $ 17.10 | |
Aggregate instrinsic value of options issued or exercised | $ 0 | ||
Unrecognized stock-based compensation costs related to non-vested stock options | $ 545,459 | ||
Non-vested stock options (in shares) | 164,980 | ||
Weighted average fair value of non-vested stock options (in usd per share) | $ 7.16 | ||
Weighted average period of recognition | 1 year | ||
Stock-based compensation expense | $ 190,331 | $ 446,077 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | 3 years | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | 5 years | |
2004 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares authorized (in shares) | 327,000 | ||
Expiration period | 10 years | ||
Shares authorized (in shares) | 439,890 | ||
Shares issued in period (in shares) | 24,500 | ||
Shares outstanding (in shares) | 164,980 | ||
Weighted average exercise price (in usd per share) | $ 7.16 | ||
Shares available for future grant (in shares) | 250,410 | ||
2004 Stock Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
2009 Inducement Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 1,250 | ||
2004 Stock Plan and 2009 Inducement Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of combined voting power of all classes of stock | 10.00% | ||
Percentage of fair value of common stock at date of grant | 110.00% | ||
2004 Stock Plan and 2009 Inducement Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
2004 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights | The 2004 Stock Plan, among other things, provides for granting of incentive and nonqualified stock option and stock bonus awards to officers, employees and outside consultants. Outstanding options under the 2004 Stock Plan generally vest over four years and terminate 10 years after the grant date, or earlier if the option holder is no longer an executive officer, employee, consultant, advisor or director, as applicable, of the Company. | ||
2010 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 2,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 1.00% | ||
Shares issued in period (in shares) | 4,331 | 2,280 | |
Shares outstanding (in shares) | 10,946 | ||
Percentage of fair value of common stock at date of grant | 85.00% | ||
Maximum percentage of earnings employee can authorize to withhold, percentage | 10.00% | ||
Award vesting rights | (i) 2,500 shares, (ii) 1 percent of the shares of common stock outstanding on the last day of the immediately preceding fiscal year, or (iii) such lesser number of shares as is determined by the Board. All of the Company’s full-time employees and certain part-time employees are eligible to participate in the 2010 ESPP. For part-time employees to be eligible, they must have customary employment of more than five months in any calendar year and more than 20 hours per week. Employees who, after exercising their rights to purchase shares under the 2010 ESPP, would own shares representing 5% or more of the voting power of the Company’s common stock, are ineligible to participate. | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 months | ||
2004 and 2010 ESPPs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from option exercises and purchases | $ 15,106 | $ 18,618 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Grant-Date Fair Value Used in the Calculation of Stock-Based Compensation Expense (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.90% | |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 72.40% | 70.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.20% | |
Expected option term | 3 years | 3 years |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 3.00% | |
Expected option term | 5 years | 5 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option Activity (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Options | |
Number of options outstanding, beginning balance (in shares) | shares | 49,410 |
Number of options granted (in shares) | shares | 150,000 |
Number of options exercised (in shares) | shares | 0 |
Number of options forfeited (in shares) | shares | (34,420) |
Number of options expired (in shares) | shares | (10) |
Number of options outstanding, ending balance (in shares) | shares | 164,980 |
Number of options vested or expected to vest (in shares) | shares | 164,980 |
Number of options exercisable (in shares) | shares | 13,086 |
Weighted Average Exercise Price | |
Weighted average exercise price of options outstanding, beginning of period (in usd per share) | $ / shares | $ 40.84 |
Weighted average exercise price of options granted (in usd per share) | $ / shares | 4.58 |
Weighted average exercise price of options exercised (in usd per share) | $ / shares | 0 |
Weighted average exercise price of options forfeited (in usd per share) | $ / shares | 38.69 |
Weighted average exercise price of options expired (in usd per share) | $ / shares | 19,713 |
Weighted average exercise price of options outstanding, end of period (in usd per share) | $ / shares | 7.16 |
Weighted average exercise price of options vested or expected to vest (in usd per share) | $ / shares | 7.16 |
Weighted average exercise price of options exercisable (in usd per share) | $ / shares | $ 34.54 |
Weighted Average Remaining Contractual Life (in years) and Aggregate Intrinsic Value | |
Weighted average remaining contractual life of options outstanding (in years) | 9 years 3 months 18 days |
Weighted average remaining contractual life of options vested or expected to vest (in years) | 9 years 3 months 18 days |
Weighted average remaining contractual life of options exercisable (in years) | 2 years |
Aggregate intrinsic value of options outstanding | $ | $ 0 |
Aggregate intrinsic value of options vested and expected to vest | $ | 0 |
Aggregate intrinsic value of options exercisable | $ | $ 0 |
Inventories (Detail)
Inventories (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Inventory Write-down | $ 1,895,884 | $ 2,595,884 | $ 0 |
Purchased components | 720,209 | 1,767,674 | |
Finished goods | 443,505 | 1,094,190 | |
Inventories | $ 1,163,714 | $ 2,861,864 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 1,504,864 | $ 1,567,787 |
Less – accumulated depreciation | (1,231,416) | (1,160,448) |
Fixed assets, net | $ 273,448 | 407,339 |
Computer and laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, estimated useful life | 3 years | |
Fixed assets, gross | $ 905,966 | 857,889 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, estimated useful life | 3 years | |
Fixed assets, gross | $ 241,413 | 241,413 |
Production equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, estimated useful life | 7 years | |
Fixed assets, gross | $ 216,000 | 327,000 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 141,485 | $ 141,485 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 124,012 | $ 169,712 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Technology Fees | $ 450,000 | $ 450,000 |
ContractManufacturer | 0 | 160,000 |
Professional services | 454,000 | 391,000 |
Accrued Salaries, Current | 62,322 | 223,756 |
Advertising and promotion | 68,000 | 171,000 |
Warranty | 75,300 | 129,837 |
Other | 333,952 | 133,580 |
Accrued expenses | $ 1,443,574 | $ 1,659,173 |
Income Taxes Income Taxes - Eff
Income Taxes Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal tax provision (benefit) rate | (21.00%) | (21.00%) |
State tax provision, net of federal provision | 19.90% | (19.60%) |
EffectiveIncomeTaxRateReconciliationImpactOfPermanentDifferences | 1.10% | (315.00%) |
Federal research and development credits | (0.00%) | 659.20% |
Effective Income Tax Rate Reconciliation 382 Limitation | 861.50% | (0.00%) |
Change in statutory tax rate | (0.00%) | (0.00%) |
Valuation allowance | (861.50%) | (303.60%) |
Effective income tax rate | 0.00% | 0.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Tax Credit Carryforward [Line Items] | ||
Income Tax Expense (Benefit) | $ 0 | $ 0 |
Tax benefits attributable to NOL | 2,500,000 | |
Tax benefits attributable to tax credit caryforwards | 75,000 | |
Deferred tax assets, valuation allowance | $ 2,208,843 | $ 35,041,300 |
Federal tax provision (benefit) rate | 21.00% | 21.00% |
Federal Tax Authority | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | 2020 | |
Net operating loss carryforwards | $ 147,300,000 | |
Tax credit carryforwards | $ 1,700,000 | |
TaxCreditCarryforwardsExpirationBeginningYear | 2020 | |
NOLAndTaxCreditCarryforwardsEliminated | $ 143,300,000 | |
NOLCarryforwardBeforeValuationAllowance | 5,700,000 | |
TaxCreditCarryforwardBeforeValuationAllowance | $ 0 | |
State Tax Authority | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | 2020 | |
Net operating loss carryforwards | $ 50,900,000 | |
Tax credit carryforwards | $ 900,000 | |
TaxCreditCarryforwardsExpirationBeginningYear | 2020 | |
Minimum | ||
Tax Credit Carryforward [Line Items] | ||
Open Tax Year | 2016 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 1,592,993 | $ 31,239,750 |
Research and development credit carryforwards | 0 | 2,599,358 |
Accrued expenses | 96,030 | 965,191 |
Stock-based compensation | 222,420 | 227,843 |
Other | (9,455) | 9,158 |
Total gross deferred tax assets | 2,208,843 | 35,041,300 |
Valuation allowance | (2,208,843) | (35,041,300) |
Net deferred tax assets | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)extension_option | Dec. 31, 2018USD ($) | Sep. 30, 2014 | |
Operating Leased Assets [Line Items] | |||
Operating Lease, Weighted Average Discount Rate, Percent | 14.70% | ||
Operating Leases, Rent Expense | $ 664,098 | $ 627,732 | |
Accrued Vacated Office Facility Costs | $ 400,000 | ||
Woburn Lease [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease, renewal term | 5 years | ||
Woburn Lease [Member] | Month Rent [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Lease, Payments | $ 13,846 | ||
Waltham Lease [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term of contract | 7 years | ||
Operating lease, number of extension options | extension_option | 1 | ||
Operating lease, renewal term | 5 years | ||
Waltham Lease [Member] | Month Rent [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Lease, Payments | $ 41,074 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
2018 | $ 641,193 | |
2019 | 653,164 | |
2020 | 247,347 | |
2021 | 165,785 | |
2022 | 165,785 | |
Operating Leases, Future Minimum Payments, Due in Six Years | 117,431 | |
Total minimum lease payments | 1,990,705 | |
Operating Lease Discount | 485,485 | |
Operating Lease, Liability, Current | 588,546 | $ 577,460 |
Operating Lease, Liability, Noncurrent | $ 916,674 | $ 1,301,172 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash equivalents | $ 698,807 | $ 4,284,928 |
Assets, Fair Value Disclosure | 698,807 | 4,284,928 |
Level 1 | ||
Assets | ||
Cash equivalents | 698,807 | 4,284,928 |
Assets, Fair Value Disclosure | 698,807 | 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 |
Fair Value Measurements - Black
Fair Value Measurements - Black-Scholes Inputs to Warrant Liability Valuation (Details) | Apr. 12, 2018$ / shares |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Stock Price | $ 13.70 |
Retirement Plan Retirement Plan
Retirement Plan Retirement Plan - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Contributions to the plan | $ 0 | $ 0 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | Jan. 23, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||
Revolving credit facility, maximum borrowing capacity | $ 2,500,000 | |
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% | |
Subsequent Event [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, maximum borrowing capacity | $ 250,000 | |
Credit facility expiration date | Apr. 30, 2020 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock and Convertible Preferred Stock (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Preferred stock | ||
Class of Stock [Line Items] | ||
Preferred stock, outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock | $ 0 | $ 0 |
Series B Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, outstanding (in shares) | 200 | 200 |
Preferred stock, shares issued (in shares) | 200 | 200 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares designated (in shares) | 147,000 | 147,000 |
Preferred stock | $ 1 | $ 1 |
Series D Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, outstanding (in shares) | 0 | 14,052.93 |
Preferred stock, shares issued (in shares) | 0 | 14,052.93 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares designated (in shares) | 21,300 | 21,300 |
Preferred stock | $ 0 | $ 14 |
Series E Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, outstanding (in shares) | 0 | 3,260.70 |
Preferred stock, shares issued (in shares) | 0 | 3,260.70 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares designated (in shares) | 7,000 | 7,000 |
Preferred stock | $ 0 | $ 3 |
Series F Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares designated (in shares) | 10,621 | 10,621 |
Preferred stock | $ 0 | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Apr. 12, 2018 | |
Class of Stock [Line Items] | |||
Common Stock, Voting Rights | Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Share price (in dollars per share) | $ 13.70 | ||
Common stock, shares authorized (in shares) | 25,000,000 | 100,000,000 | |
Proceeds from Issuance or Sale of Equity | $ 15,106 | $ 18,618 | |
Common Stock From Series D Preferred Stock | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, shares issued upon conversion (in shares) | 534,333 | ||
Common Stock From Series F Preferred Stock | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, shares issued upon conversion (in shares) | 123,981 | 301,409 | |
Common Stock From Series B Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, shares issued upon conversion (in shares) | 93 | ||
Common Stock From Series E Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Convertible preferred stock, shares issued upon conversion (in shares) | 142,178 | ||
Preferred stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Shares Outstanding | 0 | 0 | |
Series F Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Shares Outstanding | 0 | 0 | |
Preferred stock, shares designated (in shares) | 10,621 | 10,621 | |
Conversion of Stock, Shares Converted | 3,260.70 | 7,927.05 | |
Series D Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Shares Outstanding | 0 | 14,052.93 | |
Preferred stock, shares designated (in shares) | 21,300 | 21,300 | |
Conversion of Stock, Shares Converted | 14,052.93 | ||
Series E Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Shares Outstanding | 0 | 3,260.70 | |
Preferred stock, shares designated (in shares) | 7,000 | 7,000 | |
Conversion of Stock, Shares Converted | 3,739.3 | ||
Series B Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, Shares Outstanding | 200 | 200 | |
Preferred stock, shares designated (in shares) | 147,000 | 147,000 | |
Conversion of Stock, Shares Converted | 300 | ||
Management Incentive [Member] | |||
Class of Stock [Line Items] | |||
Stock Issued During Period, Value, Other | $ 294,264 | ||
Management Incentive [Member] | Common Stock | |||
Class of Stock [Line Items] | |||
Shares issued during period (in shares) | 21,479 | ||
Stock Issued During Period, Value, Other | $ 2 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) | Dec. 31, 2019shares |
Class of Stock [Line Items] | |
Total common shares reserved for future issuance | 469,213 |
Inducement Plan | |
Class of Stock [Line Items] | |
Total common shares reserved for future issuance | 1,250 |
Stock Option Plans | |
Class of Stock [Line Items] | |
Total common shares reserved for future issuance | 250,410 |
Employee Stock Purchase Plan | |
Class of Stock [Line Items] | |
Total common shares reserved for future issuance | 10,946 |
Options | |
Class of Stock [Line Items] | |
Total common shares reserved for future issuance | 164,980 |
Warrants | |
Class of Stock [Line Items] | |
Total common shares reserved for future issuance | 41,627 |
Business Restructuring Busine_2
Business Restructuring Business Restructuring - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 2,345,657 | ||
Restructuring and Related Cost, Number of Positions Eliminated | 11 | ||
Severance Costs | $ 224,773 | $ 224,773 | |
Facility Relocation Costs | 225,000 | 100,000 | |
Inventory Write-down | $ 1,895,884 | 2,595,884 | $ 0 |
Accrued Vacated Office Facility Costs | 400,000 | ||
Restructuring Reserve | 400,000 | ||
IdleFacilityImpairmentCharge | 400,000 | $ 0 | |
Facility Relocation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 0 | ||
Payments for Restructuring | (100,000) | ||
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 0 | ||
Payments for Restructuring | (224,773) | ||
IdleFacilityImpairment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 400,000 | ||
Quell [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 | 311,514 | ||
Quell [Member] | Selling and Marketing Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance And Relocation Costs | 221,387 | ||
Quell [Member] | General and Administrative Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance And Relocation Costs | $ 191,872 |
Reverse Stock Split - Additiona
Reverse Stock Split - Additional Information (Detail) - shares | Nov. 18, 2019 | Dec. 31, 2019 | Nov. 17, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||||
Stockholders' Equity, Reverse Stock Split | 1-for-10 reverse stock split of its Common Stock | |||
Common stock, shares outstanding (in shares) | 978,158 | 1,400,674 | 9,781,755 | 738,029 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | $ 25,000 | $ 25,000 |
Charged to costs and expenses | 49,361 | 8,374 |
Balance at End of Period | 70,000 | 25,000 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (4,361) | (8,374) |
Deferred Tax Asset Valuation Allowance | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 35,041,300 | 35,331,314 |
Charged to costs and expenses | 1,535,093 | 269,241 |
Balance at End of Period | 2,208,843 | 35,041,300 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (34,367,550) | (559,255) |
SalesReturnsReservesMember [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 1,101,658 | 1,486,406 |
Balance at End of Period | 689,000 | 1,101,658 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (412,658) | (384,748) |
SEC Schedule, 12-09, Reserve, Warranty [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 129,837 | 127,361 |
Charged to costs and expenses | 2,476 | |
Balance at End of Period | 75,300 | $ 129,837 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | $ (54,537) |
Uncategorized Items - nuro-2019
Label | Element | Value |
Stock Issued During Period, Value, Conversion of Units | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 4,043,681 |