Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MYO | |
Entity Registrant Name | MYOMO, INC. | |
Entity Central Index Key | 0001369290 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 20,923,417 | |
Entity File Number | 001-38109 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Tax Identification Number | 47-0944526 | |
Entity Address, Address Line One | 137 Portland St. | |
Entity Address, Address Line Two | 4th Floor | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02114 | |
City Area Code | 617 | |
Local Phone Number | 996-9058 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Security Exchange Name | NYSEAMER | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 9,263,560 | $ 5,345,967 |
Accounts receivable, net | 1,547,801 | 1,896,163 |
Inventories, net | 1,565,268 | 1,399,865 |
Prepaid expenses and other current assets | 535,558 | 573,462 |
Total Current Assets | 12,912,187 | 9,215,457 |
Operating lease assets with right of use, net | 406,915 | 508,743 |
Equipment, net | 190,736 | 194,283 |
Investment in Jiangxi Myomo Medical Assistive Appliance Co. Ltd. | 115,287 | 132,489 |
Other assets | 111,034 | 111,034 |
Total Assets | 13,736,159 | 10,162,006 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 3,475,543 | 3,086,932 |
Current operating lease liability | 275,028 | 353,701 |
Income taxes payable | 182,768 | 140,650 |
Deferred revenue | 747 | 20,653 |
Total Current Liabilities | 3,934,086 | 3,601,936 |
Deferred revenue, net of current portion | 312 | 498 |
Non-current operating lease liability | 169,770 | 200,207 |
Total Liabilities | 4,104,168 | 3,802,641 |
Commitments and Contingencies | 0 | 0 |
Stockholders’ Equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock par value $0.0001 per share, 65,000,000 shares authorized; 20,922,530 and 7,750,635 shares issued as of March 31, 2023 and December 31, 2022, respectively; and 20,922,503 and 7,750,608 shares outstanding at March 31, 2023 and December 31, 2022, respectively | 2,092 | 775 |
Additional paid-in capital | 100,954,887 | 95,105,071 |
Accumulated other comprehensive income | 109,015 | 43,227 |
Accumulated deficit | (91,427,539) | (88,783,244) |
Treasury stock, 27 shares at cost | (6,464) | (6,464) |
Total Stockholders’ Equity | 9,631,991 | 6,359,365 |
Total Liabilities and Stockholders’ Equity | $ 13,736,159 | $ 10,162,006 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 65,000,000 | 65,000,000 |
Common stock, shares issued | 20,922,530 | 7,750,635 |
Common stock, shares outstanding | 20,922,503 | 7,750,608 |
Treasury shares at cost | 27 | 27 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | $ 3,446,708 | $ 3,867,926 |
Cost of revenue | 1,139,074 | 1,290,704 |
Gross profit | 2,307,634 | 2,577,222 |
Operating expenses: | ||
Research and development | 476,991 | 659,536 |
Selling, general and administrative | 4,501,608 | 4,656,417 |
Total operating expenses | 4,978,599 | 5,315,953 |
Loss from operations | (2,670,965) | (2,738,731) |
Other (income) expense | ||
Interest income | (86,314) | (180) |
Other expense, net | 31 | 128 |
Loss on equity investment | 17,202 | 0 |
Total other expense (income) | (69,081) | (52) |
Loss before income taxes | (2,601,884) | (2,738,679) |
Income tax expense | 42,411 | 76,255 |
Net loss | $ (2,644,295) | $ (2,814,934) |
Weighted average number of common shares outstanding: | ||
Basic and diluted | 24,196,732 | 6,885,924 |
Basic and diluted | 24,196,732 | 6,885,924 |
Net loss per share attributable to common stockholders | ||
Basic and diluted | $ (0.11) | $ (0.41) |
Basic and diluted | $ (0.11) | $ (0.41) |
Product revenue | ||
Revenue | $ 3,446,708 | $ 2,867,926 |
License revenue | ||
Revenue | $ 0 | $ 1,000,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (2,644,295) | $ (2,814,934) |
Other comprehensive income, net of tax: | ||
Foreign currency translation gain | 65,788 | 9,245 |
Other comprehensive income | 65,788 | 9,245 |
Comprehensive loss | $ (2,578,507) | $ (2,805,689) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-in Capital [Member] | Comprehensive Loss [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Beginning balance at Dec. 31, 2021 | $ 15,409,131 | $ 687 | $ 93,537,807 | $ (60,677) | $ (78,062,222) | $ (6,464) |
Beginning balance, shares at Dec. 31, 2021 | 6,869,753 | 27 | ||||
Common stock issued upon vesting of restricted stock units | $ 1 | (1) | ||||
Common stock issued upon vesting of restricted stock units, Shares | 10,151 | |||||
Stock-based compensation | 266,270 | 266,270 | ||||
Unrealized gain on foreign currency | 9,245 | 9,245 | ||||
Net loss | (2,814,934) | (2,814,934) | ||||
Ending balance at Mar. 31, 2022 | 12,869,712 | $ 688 | 93,804,076 | (51,432) | (80,877,156) | $ (6,464) |
Ending balance, shares at Mar. 31, 2022 | 6,879,904 | 27 | ||||
Beginning balance at Dec. 31, 2022 | 6,359,365 | $ 775 | 95,105,071 | (43,227) | (88,783,244) | $ (6,464) |
Beginning balance, shares at Dec. 31, 2022 | 7,750,635 | 27 | ||||
Common stock issued upon vesting of restricted stock units, Shares | 2,821 | |||||
Proceeds from sale of common stock in public offering, net of offering costs of $663,856 (shares) | 13,169,074 | |||||
Proceeds from sale of common stock in public offering, net of offering costs of $663,856 (value) | 3,616,094 | $ 1,317 | 3,614,777 | |||
Proceeds from sale of 6,830,926 pre-funded warrants, net of offering costs of $155,356 | 2,064,012 | 2,064,012 | ||||
Stock-based compensation | 171,027 | 171,027 | ||||
Unrealized gain on foreign currency | 65,788 | 65,788 | ||||
Net loss | (2,644,295) | (2,644,295) | ||||
Ending balance at Mar. 31, 2023 | $ 9,631,991 | $ 2,092 | $ 100,954,887 | $ 109,015 | $ (91,427,539) | $ (6,464) |
Ending balance, shares at Mar. 31, 2023 | 20,922,530 | 27 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
Warrants Outstanding | shares | 688,250 |
Pre-funded Warrants [Member] | |
Offering cost from sale of stock | $ | $ 155,356 |
Warrants Outstanding | shares | 6,830,926 |
Common Stock | |
Offering cost from sale of stock | $ | $ 663,856 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (2,644,295) | $ (2,814,934) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation | 48,632 | 45,630 |
Stock-based compensation | 171,027 | 266,270 |
Bad debt expense | 13,000 | 26,075 |
Loss on equity investment | 17,202 | 0 |
Amortization of right-of-use assets | 101,829 | 76,654 |
Other non-cash charges | 49,012 | (6,364) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 340,533 | 272,748 |
Inventories | (157,148) | (229,740) |
Prepaid expenses and other current assets | (53,577) | (142,240) |
Other assets | 0 | (16,079) |
Accounts payable and accrued expenses | 386,880 | 294,828 |
Income taxes payable | 39,417 | 0 |
Operating Lease Liabilities | (109,109) | (97,098) |
Deferred revenue | (20,093) | 1,650 |
Net cash used in operating activities | (1,816,690) | (2,322,600) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investment in Jiangxi Myomo Medical Assistive Appliance Co. Ltd. | 0 | (199,000) |
Purchases of equipment | (45,085) | (49,879) |
Net cash used in investing activities | (45,085) | (248,879) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from exercise of warrants | 3,708,045 | 0 |
Proceeds from issuance under at-market sales facility, net of offering costs | 2,064,012 | 0 |
Net cash provided by financing activities | 5,772,057 | 0 |
Effect of foreign exchange rate changes on cash | 7,311 | (10,392) |
Net increase (decrease) in cash, cash equivalents | 3,917,593 | (2,581,871) |
Cash, cash equivalents, beginning of period | 5,345,967 | 15,524,378 |
Cash, cash equivalents, end of period | 9,263,560 | 12,942,507 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Right of use assets obtained in exchange for lease liabilities | 0 | 225,665 |
Deferred offering costs incurred in a prior period to additional paid-in capital | $ (91,952) | $ 0 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Note 1 — Description of Business Myomo Inc. (“Myomo” or the Company”) is a wearable medical robotics company that develops, designs, and produces myoelectric orthotics for people with neuromuscular disorders. The MyoPro ® myoelectric upper limb orthosis product is registered with the U.S. Food and Drug Administration as a Class II medical device. The Company sells its products directly to patients, to Orthotics and Prosthetics ("O&P") providers around the world, the Veterans Health Administration, and distributors in Europe and Australia. The Company was incorporated in the State of Delaware on September 1, 2004 and is headquartered in Boston, Massachusetts. |
Going Concern and Management's
Going Concern and Management's Plan | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern and Management's Plan | Note 2 — Going Concern and Management Plans The Company incurred net losses of approximately $ 2,644,300 and $ 2,815,000 during the three months ended March 31, 2023 and 2022, respectively, and has an accumulated deficit of approximately $ 91,427,500 and $ 88,783,200 at March 31, 2023 and December 31, 2022, respectively. Cash used in operating activities was approximately $ 1,816,700 and $ 2,322,600 for the three months ended March 31, 2023 and 2022, respectively. The Company has historically funded its operations through financing activities, including raising equity and debt. On January 17, 2023, the Company completed a public equity offering, selling 13,169,074 shares of common stock and 6,830,926 pre-funded warrants at $ 0.325 per share or at $ 0.3249 per warrant, generating proceeds after fees and expenses of approximately $ 5.7 million. See Note 7 - Common Stock and Warrants for further discussion. Financing activities, such as the recent public equity offering, are enabling the Company to sustain its operations. Considering the Company's cash balance as of March 31, 2023 and the payment of the remaining initial license fee by Jiangxi Myomo Medical Assistive Appliance Co. Ltd. (the "JV Company") in April 2023 (see Note 10 - Subsequent Events) and its cash used from operations over the last twelve months and uncertainty of reimbursement, particularly from the Centers for Medicare and Medicaid Services ("CMS") for Medicare Part B beneficiaries, management believes there is substantial doubt regarding its ability to continue as a going concern. Management's operating plans are primarily focused on growing its revenues and limiting operating expenses through focusing its clinical and reimbursement efforts on patients with insurers that have previously reimbursed for the MyoPro. The Company believes the growth in its patient pipeline during 2022 provides an opportunity to accelerate its revenue growth in 2023. The Company has stopped activities geared toward increasing the number of payers that will reimburse for its products until the Company receives reimbursement for its products provided to Medicare Part B beneficiaries from the CMS, or CMS states its intention to reimburse for its products. As a result, the Company has undertaken cost reduction activities, including the reduction of approximately 12 % of its workforce in January 2023. This and other cost reduction efforts are expected to reduce its operating expense run-rate by approximately $ 2.0 million in 2023. With respect to CMS, the Company met with the medical directors of CMS's administrative billing contractors, referred to as the DME MAC's, in April 2023 to discuss coverage and reimbursement, and discuss initial claims on behalf of Medicare Part B beneficiaries submitted beginning in March 2023. Review of the submitted claims by the DME MAC's is currently in process. The Company's success is dependent upon reimbursement of its products by insurance companies and government-controlled health care plans such as Medicare and Medicaid in the United States and Statutory Health Insurance plans in Germany, which could prevent our revenues from growing to the level necessary to achieve cash flow breakeven. The Company believes that it has access to capital resources through possible public or private equity offerings, exercises of outstanding warrants, additional debt financings, or other means; however, the Company may be unable to raise sufficient additional capital when it needs it or raise capital on favorable terms. As part of the Company's equity offering in January 2023, the Company agreed to not sell any shares of its common stock to Keystone Capital Partners ("Keystone") under the Common Stock Purchase Agreement (the "Purchase Agreement") or under its At-Market Sales Facility, or ATM Facility, for a period of one year from the closing of the offering. The Company has remaining capacity under its Purchase Agreement with Keystone of approximately 1.0 million shares and approximately $ 0.3 million under its ATM Facility. However, due to its public float, the amount of securities the Company may sell from time to time under the registration statement which registered the ATM Facility may be subject to the limitations imposed by General Instruction I.B.6 of Form S-3. Further, selling the full $ 5 million to Keystone available under the Purchase Agreement requires approval from shareholders to sell shares in excess of the exchange cap under the rules of the NYSE American. Should the Company consider debt financing, such a transaction may require the Company to pledge certain assets and enter into covenants that could restrict certain business activities or its ability to incur further indebtedness and may contain other terms that are not favorable to its stockholders or the Company. If the Company is unable to obtain adequate funds on reasonable terms, the Company may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. There can be no assurance that the Company will be successful in implementing its plans. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3 — Summary of Significant Accounting Policies Interim Financial Statements The accompanying unaudited condensed consolidated financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information pursuant to Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) that are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of March 31, 2023 and for the three months ended March 31, 2023 and 2022. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the operating results for the fiscal year ending December 31, 2023, or any other period. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and related disclosures of the Company as of December 31, 2022 and 2021 and for the years then ended, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 . Basis of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Myomo Europe GmbH. All significant intercompany balances and transactions are eliminated. Reclassifications Certain prior year amounts have been reclassified to conform to current year's presentation, which management does not consider to be material. Comprehensive Income Comprehensive loss inclu des all changes in equity during a period, except those resulting from investments by stockholders and distributions to stockholders. The Company's comprehensive income includes changes in foreign currency translation adjustments. There were no reclassifications out of accumulated other comprehensive loss in the three months ended March 31, 2023 and 2022, respectively. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates and assumptions are reviewed on an on-going basis and updated as appropriate. Actual results could differ from these estimates. The Company’s significant estimates include deferred tax valuation allowances, valuation of stock-based compensation, warranty obligations and reserves for slow-moving inventory. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from purchase date to be cash equivalents. Cash and cash equivalents consist principally of deposit accounts and money market accounts at March 31, 2023 and December 31, 2022 . Accounts Receivable and Allowance for Doubtful Accounts The Company reports accounts receivable at invoiced amounts less an allowance for doubtful accounts. The Company evaluates its accounts receivable on a continuous basis and, if necessary, establishes an allowance for doubtful accounts based on a number of factors, including current credit conditions and customer payment history. The Company does not require collateral or accrue interest on accounts receivable and credit terms are generally 30 days. At March 31, 2023 , and December 31, 2022, the Company recorded an allowance for doubtful accounts which was immaterial to the financial statements. Joint Venture On March 28, 2022, the Company invested cash consideration of $ 199,000 for a 19.9 % ownership stake in the JV Company, a company headquartered in China that is majority-owned by Beijing Ryzur Medical Investment Co., Ltd. (“Ryzur Medical”). The JV Company will manufacture and sell the Company’s current and future products in greater China, including Hong Kong, Macau and Taiwan. The Company accounts for its investment in the JV Company under the equity method because the Company exerts significant influence over its management. The investment is included in total assets on the condensed consolidated balance sheet . There was no impairment charge for t he three months ended March 31, 2023 associated with this equity investment. The Company records its share of the JV Company's earnings in its condensed consolidated statement of operations in other expense (income). The Company recorded a loss on equity investment of approximately $ 17,200 for the three months ended of March 31, 2023 . The loss on equity investment for the three months ended March 31, 2022 was not material. Revenue Recognition The Company accounts for revenue under ASC 606, “Revenue from Contracts with Customers” and all of the related amendments (Topic 606). Revenues under Topic 606 are required to be recognized either at a “point in time” or “over time,” depending on the facts and circumstances of the arrangement and are evaluated using a five-step model. Generally, the Company recognizes revenue at a point in time. The Company recognizes revenue after applying the following five steps: 1) Identification of the contract, or contracts, with a customer 2) Identification of the performance obligations in the contract, including whether they are distinct within the context of the contract 3) Determination of the transaction price, including the constraint on variable consideration 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, performance obligations are satisfied Revenue is recognized when control of these services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Product Revenue Increasingly, the Company derives its revenue from direct billing. The Company also derives revenue from the sale of its products to O&P providers in the United States and internationally, the Veterans Administration (“VA”) and distributors in Europe and Australia. Under direct billing, the Company recognizes revenue when all of the following criteria are met: (i) The product has been delivered to the patient, including completion of initial instruction on its use. (ii) Collection is deemed probable and it has been determined that a significant reversal of the revenue to be recognized is not deemed probable when the uncertainty associated with the variable consideration is resolved. As an example, the Company will record revenue if it is notified that insurance intends to pay and a payment amount is provided. (iii) The amount to be collected is estimable using the “expected value” estimation techniques, or the “most likely amount” as defined in ASC 606. For revenue derived from certain insurance companies where the Company has demonstrated sufficient payment history, the Company recognizes revenue when it receives a pre-authorization from the insurance company and control passes to the patient upon delivery of the device in an amount the reflects the consideration the Company expects to receive in exchange for the device. These insurers represent ed 63 % and 53 % of direct billing channel revenue during the three months ended March 31, 2023 and 2022, respectively. Depending on the timing of product deliveries to customers, which is when cost of revenue must be recorded, and when the Company meets the criteria to record revenue, there may be fluctuations in gross margin. During the three months ended March 31, 2023 and 2022, the Company recognized revenue of approximately $ 1,683,800 and $ 623,500 , respectively, from O&P providers or third-party payers for which costs related to the completion of the Company’s performance obligations were not recorded in the current period. For revenues derived from O&P providers, the VA and rehabilitation hospitals, the Company recognizes revenue when control passes to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those services. Revenues may be recognized upon shipment or upon delivery, depending on the terms of the arrangement, provided that persuasive evidence of an arrangement exists, there are no uncertainties regarding customer acceptance and collectability is deemed probable. The Company has elected to record taxes collected from customers on a net basis and does not include tax amounts in revenue or cost of revenue. License Revenue If a license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue allocated to the license when the license is transferred to the customer, the customer is able to use and benefit from the license, and collectability is deemed probable. On January 21, 2021, we entered into a definitive agreement with Ryzur Medical to form the JV Company to manufacture and sell our current and future products in greater China, including Hong Kong, Macau and Taiwan (the “JV Agreements”). Under the JV Agreements, we are entitled to receive an upfront license fee of $ 2.7 million, of which $ 1.0 million was paid and recognized during the three months ended March 31, 2022. The Company received the remaining amount of $ 1.7 million in April 2023, which will be recognized in the second quarter of 2023. Contract Balances The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment and there is an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had approximately $ 1,100 and $ 21,200 of deferred revenue as of March 31, 2023 and December 31, 2022, respectively. Disaggregated Revenue from Contracts with Customers The following table presents revenue by major source: For the Three Months 2023 2022 Direct to patient $ 2,414,614 $ 1,852,144 Clinical/Medical providers 1,032,094 1,015,782 License revenue — 1,000,000 Total revenue from contracts with customers $ 3,446,708 $ 3,867,926 Geographic Data The Company generate d 80 % of its total revenue from the United States, 17 % from Germany, and an immaterial amount from other international locations for the three months ended March 31, 2023 . The Company generated 57 % of its total revenue from the United States, 26 % from China, 15 % from Germany, and immaterial amounts from international locations the three months ended March 31, 2022. Cost of Revenue In conjunction with the adoption of ASC 606, there are certain cases in which the Company will expense costs when incurred as required by ASC 340-40-25. In certain cases, the Company ships the MyoPro device to O&P providers, or provides the device directly to patients, pending reimbursement from third-party payers, after which revenue is recognized. For the three months ended March 31, 2023 and 2022, the Company recorded cost of goods sold of approximate ly $ 199,800 and $ 304,200 , respectively without corresponding revenue. Direct billing fees paid to O&P providers for services they provide in conjunction with patient evaluations are expensed as incurred as required by ASC 340-40-25, as a cost of obtaining a contract. These costs are recorded as sales and marketing expense. Internal costs incurred and fees paid to O&P providers to measure, fit and deliver the device to patients are expensed to cost of revenue. Advertising The Company charges the costs of advertising to operating expenses as incurred . Advertising expense amounted to approximately $ 691,500 and $ 953,400 during the three months ended March 31, 2023 and 2022 , respectively. Foreign Currency Translation The functional currency of the Company’s foreign subsidiary, Myomo Europe GmbH, is the Euro. Foreign exchange translation gains and losses from the Euro to U.S. dollars during the three months ended March 31, 2023 were immaterial and included in accumulated other comprehensive income in the condensed consolidated balance sheet. Transaction and translation foreign exchange gains and losses from a foreign currency to the functional currency are included in cost of revenue expenses in the condensed consolidated statements of operations. Such amounts were immaterial for the three months ended March 31, 2023 and 2022. The balance sheet is translated using the spot rate on the day of reporting and the statement of operations is translated monthly using the average rate for the month. Net Loss per Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding, plus potentially dilutive common shares. Restricted stock, restricted stock units, stock options and warrants are excluded from the diluted net loss per share calculation when their impact is antidilutive. The Company reported a net loss for the three months ended March 31, 2023 and 2022, and as a result, all potentially dilutive common shares are considered antidilutive for these periods. Potential dilutive common shares issuable consist of the following at: March 31, 2023 2022 Stock options 28,327 32,381 Restricted stock units 681,884 279,847 Other warrants 668,250 693,643 Total 1,378,461 1,005,871 Due to their nominal exercise price of $ 0.0001 per share, 6,830,926 pre-funded warrants are considered common stock equivalents and are included in weighted average shares outstanding in the accompanying condensed consolidated statement of operations as of the closing date of the Company's public equity offering in January 2023. Recently Adopted Accounting Standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, that requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about obligations outstanding at the end of the reporting period, including a rollforward of those obligations. The guidance does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. The new standard’s requirements to disclose the key terms of the programs and information about obligations outstanding are effective for fiscal years, including interim periods, beginning after December 15, 2022, except for the requirement to disclose a rollforward of obligations outstanding will be effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company has adopted this new standard, which did not have a material impact on its financial position and results of operations. Subsequent Events The Company evaluates whether there have been subsequent events through the date the financial statements were issued and determines whether subsequent events exist that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 — Inventories Inventories consist of the following at: March 31, December 31, Finished goods $ 439,091 $ 512,028 Work in process 17,422 18,971 Rental units 51,694 51,694 Parts and subassemblies 1,133,617 903,581 1,641,824 1,486,274 Less: reserve for rental and trial units ( 76,556 ) ( 86,409 ) Inventories, net $ 1,565,268 $ 1,399,865 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 5 — Fair Value of Financial Instruments The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820, “Fair Value Measurement” (“ASC 820”), which defines fair value, establishes a framework for measuring fair value, and establishes disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices available in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quotable prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar valuation techniques that use significant unobservable inputs. The carrying amounts of the Company’s financial instruments such as cash and cash equivalents, accounts receivable and accounts payable, approximate fair value due to the short-term nature of these instruments. Cash equivalents consist of a money market fund that limits its investments to only short-term U.S. Treasury securities and repurchase agreements related to these securities. Cash equivalents measured at fair value on a recurring basis at March 31, 2023 were as follows: In Active Significant Significant Total Cash equivalents $ 7,894,919 $ — $ — $ 7,894,919 Cash equivalents measured at fair value on a recurring basis at December 31, 2022 were as follows: In Active Significant Significant Total Cash equivalents $ 4,350,657 $ — $ — $ 4,350,657 |
Accounts payable and accrued ex
Accounts payable and accrued expenses | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Note 6 - Accounts Payable and Accrued Expenses: Accounts Payable and Other Accrued Expenses consists of the following at: March 31, December 31, Trade payables $ 906,805 $ 569,681 Accrued compensation and benefits 1,234,164 1,059,228 Accrued professional services 123,797 124,548 Warranty reserve 129,930 234,647 Customer deposits 932,589 753,232 Other 148,258 345,596 $ 3,475,543 $ 3,086,932 |
Common Stock and Warrants
Common Stock and Warrants | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Common Stock and Warrants | Note 7 — Common Stock and Warrants On January 17, 2023, the Company completed a public equity offering, selling 13,169,074 shares of common stock and 6,830,926 pre-funded warrants at $ 0.325 per share or at $ 0.3249 per warrant, generating proceeds after fees and expenses of approximately $ 5.7 million. Each pre-funded warrant is exercisable for one share of the Company's common stock at a nominal exercise price of $ 0.0001 per share. No pre-funded warrants have been exercised as of March 31, 2023. O n August 2, 2022, ("the "Agreement Date"") the Company entered into a Purchase Agreement with Keystone, establishing an equity line facility under which the Company, at its sole discretion, can direct Keystone to purchase up to $ 5.0 million of the Company's common stock (the "Maximum Amount") from time to time through delivery of a purchase notice ("Notice"). The purchase price is at the lesser of prevailing market prices of the Company’s common stock as defined in the Purchase Agreement, at a 10 % discount. The Company can sell shares of common stock to Keystone up to the Maximum Amount, provided that the Company has agreed to issue no more than 1,399,334 shares of common stock (the "Minimum Shares"), representing 19.99 % of the Company's outstanding shares on the Agreement Date (the "Exchange Cap"), of which 50,000 shares were issued to Keystone as a commitment fee after closing of the transaction. As of March 31, 2023, 1,008,458 remained to be sold under the Exchange Cap. During the twenty-four (2 4) month term of the Purchase Agreement, Keystone can purchase in excess of the Minimum Shares up to the Maximum Amount so long as (i) the price per share paid by Keystone for an applicable purchase is in excess of the greater of the closing price of the Company's common stock or book value per share on the trading day immediately prior to the date of the purchase notice, or (ii) the Company's shareholders vote in favor of permitting the Company to sell shares in excess of the Exchange Cap. Keystone's obligation to purchase shares of the Company's common stock is subject to the Company's ability to maintain an effective registration statement, continued listing on the NYSE American or other trading market and a minimum price per share of $ 0.50 , among other conditions. Keystone's beneficial ownership of the common stock is limited to 4.99 % of the Company's outstanding common stock during the Term. There were no sales under the Purchase Agreement during the three months ended March 31, 2023. In June 2021, the Company entered into an ATM Facility with Alliance Global Partners ("AGP"). Under the ATM Facility, the Company may sell up to an aggregate of $ 15 million of the Company’s common stock from time to time and shall pay to AGP cash commissions of 3.0 % of the gross proceeds of sales of common stock under the ATM Facility. There were no sales under the ATM Facility during the three months ended March 31, 2023. In conjunction with entering into the Purchase Agreement with Keystone, the Company reduced the amount available to sell under the ATM Facility to $ 0.3 million. This amount remains available for sale at March 31, 2023. The Company issued warrants to investors as part of its public equity offering in February 2020. The warrants are being accounted for as equity. Each warrant entitles the holder to purchase one share of the Company's common stock at an exercise price of $ 7.50 per share. 688,250 warrants remain outstanding as of March 31, 2023. There were no exercises of these warrants during the three months ended March 31, 2023. The warrants expire on February 13, 2025. In conjunction with the Company's public equity offering in January 2023, the Company agreed to not sell any shares of its common stock under the Purchase Agreement or its ATM Facility for a period of one year from the closing date. During the three months ended March 31, 2023 and 2022, 2,821 and 10,151 restricted stock units vested, respectively. |
Stock Award Plans and Stock-bas
Stock Award Plans and Stock-based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Award Plans and Stock-based Compensation | Note 8 — Stock Award Plans and Stock-based Compensation Stock Option Awards The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of its stock options. There was no income tax benefit recognized in the financial statements for share-based compensation arrangements for the three months ended March 31, 2023 and 2022. There were no stock options granted during the three months ended March 31, 2023 a nd 1,700 stock options granted during the three months ended March 31, 2022. As of March 31, 2023 , there were 155,082 shares available for issuance under the Myomo, Inc. 2018 Stock Option and Incentive Plan (the “2018 Plan”). On January 1, 2023, the number of shares reserved and available for issuance under the 2018 Plan increased by 310,024 shares pursuant to a provision in the 2018 Plan that provides that the number of shares of common stock reserved and available for issuance under the 2018 Plan will be cumulatively increased each January 1 by 4 % of the number shares of common stock outstanding on the immediately preceding December 31 or such lesser number of shares of common stock determined by management in consultation with members of the Board of Directors, including the compensation committee. Recipients of awards of restricted stock units typically sell shares in the open market to cover their individual tax liabilities and remit the proceeds to the Company, which offsets withholding taxes paid by the Company. In certain circumstances, stock awards may be net share settled upon vesting to cover the required employee statutory withholding taxes and the remaining amount is converted into shares based upon their share-value on the date the award vests. In such instances, these payments of employee withholding taxes are presented in the statements of cash flows as a financing activity. There were no stock awards that were net share settled during the three months ended March 31, 2023 and 2022, respectively. Share-Based Compensation Expense The Company accounts for stock awards to employees and non-employees based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. The Company attributes the value of stock-based compensation to operations on the straight-line method such that the expense associated with awards is evenly recognized over the vesting period. The Company recognized stock-based compensation expense related to the issuance of stock option awards and restricted stock units to employees, non-employees and directors in the statements of operations as follows: Three Months Ended March 31, 2023 2022 Cost of goods sold $ 20,479 $ 14,755 Research and development ( 69,727 ) 29,612 Selling, general and administrative 220,275 221,903 Total $ 171,027 $ 266,270 As of March 31, 2023 , there was approximately $ 47,400 of unrecognized compensation cost related to unvested stock options that is expected to be recognized over a weighted-average period of 2.20 years. As of March 31, 2023, there was approximately $ 1,185,300 of unrecognized compensation expense related to unvested restricted stock units that is expected to be recognized over a weighted-average period of 1.22 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 — Commitments and Contingencies Litigation The Company may be involved in legal proceedings, claims and assessments arising from the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. During 2022, a former employee that was terminated in 2021 brought an age discrimination claim against the Company. While the Company disputes this claim, it believes that it is probable that a loss will be incurred for this matter and has recorded a loss contingency of $ 135,000 to accrued expenses as of March 31, 2023. The Company expects its insurance to cover the majority of the loss that may be incurred. There is no other material litigation against the Company at this time. Operating Leases The Company has a non-cancelable sublease agreement for its corporate headquarters in Boston, MA expiring in 2023. In conjunction with entering into a non-cancelable lease agreement for its manufacturing space in Boston, the Company agreed to enter into a lease for its corporate headquarters, which together with its leased office space in Fort Worth, TX, both expire in 2025. The Fort Worth, TX, lease has the option to terminate early, which is available at the Company’s discretion in 2023. Termination options were not included in the lease term for the Company’s existing operating leases. Certain arrangements have discounted rent periods or escalating rent payment provisions. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets. We recognize rent expense on a straight-line basis over the lease term. As of March 31, 2023, operating lease assets were approximately $ 406,900 . The amount and the maturity of the Company’s operating lease liabilities as of March 31, 2023, are as follows: March 31, 2023 2023 (March 31 -December 31) $ 287,223 2024 159,872 2025 67,981 2026 — 2027 — Thereafter — Total future minimum lease payments 515,076 Less imputed interest 70,278 Total operating lease liabilities $ 444,798 Included in the condensed consolidated balance sheet: Current operating lease liabilities $ 275,028 Non-current operating lease liabilities 169,770 Total operating lease liabilities $ 444,798 For the three months ended March 31, 2023 and 2022, the total lease cost is comprised of the following amounts: For the Three Months 2023 2022 Operating lease expense 125,650 116,611 Short-term lease expense — 1,950 Total lease expense $ 125,650 $ 118,561 The following summarizes additional information related to operating leases: March 31, 2023 Weighted-average remaining lease term (in years) 1.6 Weighted-average discount rate 20 % Major Customers For the three months ended March 31, 2023 and 2022, t here were no customers which accounted for more than 10% of product revenues. For the three months ended March 31, 2023 and 2022, a U.S. insurance payer represented 44 % and 34 % of product reve nues, respectively. At March 31, 2023 and December 31, 2022, one insurance company and its affiliates accounted for approximately 56 % and 62 % of accounts receivable, respectively. For the three months ended March 31, 2023 and 2022, approximately 53 % and 52 % of the Company's product revenues, respectively, were derived from patients with Medicare Advantage insurance plans. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10 — Subsequent Events On April 6, 2023, the JV Company paid the remaining initial license fee of approximately $ 1,715,000 due under the Technology License Agreement. Payment of the license fee enables the Company to begin transferring the technology to enable the manufacture and sale of the Company's products in China, Hong Kong, Macau and Taiwan. The Company will record the payment as license revenue during the three months ended June 30, 2023. The Company evaluated subsequent events through the date the financial statements were issued, and determined that, except as disclosed herein, there have been no other subsequent events that would require recognition in the financial statements or disclosure in the notes to the condensed consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements The accompanying unaudited condensed consolidated financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information pursuant to Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) that are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of March 31, 2023 and for the three months ended March 31, 2023 and 2022. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the operating results for the fiscal year ending December 31, 2023, or any other period. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and related disclosures of the Company as of December 31, 2022 and 2021 and for the years then ended, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 . |
Basis of Consolidation | Basis of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Myomo Europe GmbH. All significant intercompany balances and transactions are eliminated. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year's presentation, which management does not consider to be material. |
Comprehensive Income | Comprehensive Income Comprehensive loss inclu des all changes in equity during a period, except those resulting from investments by stockholders and distributions to stockholders. The Company's comprehensive income includes changes in foreign currency translation adjustments. There were no reclassifications out of accumulated other comprehensive loss in the three months ended March 31, 2023 and 2022, respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates and assumptions are reviewed on an on-going basis and updated as appropriate. Actual results could differ from these estimates. The Company’s significant estimates include deferred tax valuation allowances, valuation of stock-based compensation, warranty obligations and reserves for slow-moving inventory. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from purchase date to be cash equivalents. Cash and cash equivalents consist principally of deposit accounts and money market accounts at March 31, 2023 and December 31, 2022 . |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company reports accounts receivable at invoiced amounts less an allowance for doubtful accounts. The Company evaluates its accounts receivable on a continuous basis and, if necessary, establishes an allowance for doubtful accounts based on a number of factors, including current credit conditions and customer payment history. The Company does not require collateral or accrue interest on accounts receivable and credit terms are generally 30 days. At March 31, 2023 , and December 31, 2022, the Company recorded an allowance for doubtful accounts which was immaterial to the financial statements. |
Joint Venture | Joint Venture On March 28, 2022, the Company invested cash consideration of $ 199,000 for a 19.9 % ownership stake in the JV Company, a company headquartered in China that is majority-owned by Beijing Ryzur Medical Investment Co., Ltd. (“Ryzur Medical”). The JV Company will manufacture and sell the Company’s current and future products in greater China, including Hong Kong, Macau and Taiwan. The Company accounts for its investment in the JV Company under the equity method because the Company exerts significant influence over its management. The investment is included in total assets on the condensed consolidated balance sheet . There was no impairment charge for t he three months ended March 31, 2023 associated with this equity investment. The Company records its share of the JV Company's earnings in its condensed consolidated statement of operations in other expense (income). The Company recorded a loss on equity investment of approximately $ 17,200 for the three months ended of March 31, 2023 . The loss on equity investment for the three months ended March 31, 2022 was not material. |
Revenue Recognition | Revenue Recognition The Company accounts for revenue under ASC 606, “Revenue from Contracts with Customers” and all of the related amendments (Topic 606). Revenues under Topic 606 are required to be recognized either at a “point in time” or “over time,” depending on the facts and circumstances of the arrangement and are evaluated using a five-step model. Generally, the Company recognizes revenue at a point in time. The Company recognizes revenue after applying the following five steps: 1) Identification of the contract, or contracts, with a customer 2) Identification of the performance obligations in the contract, including whether they are distinct within the context of the contract 3) Determination of the transaction price, including the constraint on variable consideration 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, performance obligations are satisfied Revenue is recognized when control of these services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Product Revenue Increasingly, the Company derives its revenue from direct billing. The Company also derives revenue from the sale of its products to O&P providers in the United States and internationally, the Veterans Administration (“VA”) and distributors in Europe and Australia. Under direct billing, the Company recognizes revenue when all of the following criteria are met: (i) The product has been delivered to the patient, including completion of initial instruction on its use. (ii) Collection is deemed probable and it has been determined that a significant reversal of the revenue to be recognized is not deemed probable when the uncertainty associated with the variable consideration is resolved. As an example, the Company will record revenue if it is notified that insurance intends to pay and a payment amount is provided. (iii) The amount to be collected is estimable using the “expected value” estimation techniques, or the “most likely amount” as defined in ASC 606. For revenue derived from certain insurance companies where the Company has demonstrated sufficient payment history, the Company recognizes revenue when it receives a pre-authorization from the insurance company and control passes to the patient upon delivery of the device in an amount the reflects the consideration the Company expects to receive in exchange for the device. These insurers represent ed 63 % and 53 % of direct billing channel revenue during the three months ended March 31, 2023 and 2022, respectively. Depending on the timing of product deliveries to customers, which is when cost of revenue must be recorded, and when the Company meets the criteria to record revenue, there may be fluctuations in gross margin. During the three months ended March 31, 2023 and 2022, the Company recognized revenue of approximately $ 1,683,800 and $ 623,500 , respectively, from O&P providers or third-party payers for which costs related to the completion of the Company’s performance obligations were not recorded in the current period. For revenues derived from O&P providers, the VA and rehabilitation hospitals, the Company recognizes revenue when control passes to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those services. Revenues may be recognized upon shipment or upon delivery, depending on the terms of the arrangement, provided that persuasive evidence of an arrangement exists, there are no uncertainties regarding customer acceptance and collectability is deemed probable. The Company has elected to record taxes collected from customers on a net basis and does not include tax amounts in revenue or cost of revenue. License Revenue If a license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue allocated to the license when the license is transferred to the customer, the customer is able to use and benefit from the license, and collectability is deemed probable. On January 21, 2021, we entered into a definitive agreement with Ryzur Medical to form the JV Company to manufacture and sell our current and future products in greater China, including Hong Kong, Macau and Taiwan (the “JV Agreements”). Under the JV Agreements, we are entitled to receive an upfront license fee of $ 2.7 million, of which $ 1.0 million was paid and recognized during the three months ended March 31, 2022. The Company received the remaining amount of $ 1.7 million in April 2023, which will be recognized in the second quarter of 2023. Contract Balances The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment and there is an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had approximately $ 1,100 and $ 21,200 of deferred revenue as of March 31, 2023 and December 31, 2022, respectively. Disaggregated Revenue from Contracts with Customers The following table presents revenue by major source: For the Three Months 2023 2022 Direct to patient $ 2,414,614 $ 1,852,144 Clinical/Medical providers 1,032,094 1,015,782 License revenue — 1,000,000 Total revenue from contracts with customers $ 3,446,708 $ 3,867,926 Geographic Data The Company generate d 80 % of its total revenue from the United States, 17 % from Germany, and an immaterial amount from other international locations for the three months ended March 31, 2023 . The Company generated 57 % of its total revenue from the United States, 26 % from China, 15 % from Germany, and immaterial amounts from international locations the three months ended March 31, 2022. Cost of Revenue In conjunction with the adoption of ASC 606, there are certain cases in which the Company will expense costs when incurred as required by ASC 340-40-25. In certain cases, the Company ships the MyoPro device to O&P providers, or provides the device directly to patients, pending reimbursement from third-party payers, after which revenue is recognized. For the three months ended March 31, 2023 and 2022, the Company recorded cost of goods sold of approximate ly $ 199,800 and $ 304,200 , respectively without corresponding revenue. Direct billing fees paid to O&P providers for services they provide in conjunction with patient evaluations are expensed as incurred as required by ASC 340-40-25, as a cost of obtaining a contract. These costs are recorded as sales and marketing expense. Internal costs incurred and fees paid to O&P providers to measure, fit and deliver the device to patients are expensed to cost of revenue. |
Advertising | Advertising The Company charges the costs of advertising to operating expenses as incurred . Advertising expense amounted to approximately $ 691,500 and $ 953,400 during the three months ended March 31, 2023 and 2022 , respectively. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company’s foreign subsidiary, Myomo Europe GmbH, is the Euro. Foreign exchange translation gains and losses from the Euro to U.S. dollars during the three months ended March 31, 2023 were immaterial and included in accumulated other comprehensive income in the condensed consolidated balance sheet. Transaction and translation foreign exchange gains and losses from a foreign currency to the functional currency are included in cost of revenue expenses in the condensed consolidated statements of operations. Such amounts were immaterial for the three months ended March 31, 2023 and 2022. The balance sheet is translated using the spot rate on the day of reporting and the statement of operations is translated monthly using the average rate for the month. |
Net Loss per Share | Net Loss per Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding, plus potentially dilutive common shares. Restricted stock, restricted stock units, stock options and warrants are excluded from the diluted net loss per share calculation when their impact is antidilutive. The Company reported a net loss for the three months ended March 31, 2023 and 2022, and as a result, all potentially dilutive common shares are considered antidilutive for these periods. Potential dilutive common shares issuable consist of the following at: March 31, 2023 2022 Stock options 28,327 32,381 Restricted stock units 681,884 279,847 Other warrants 668,250 693,643 Total 1,378,461 1,005,871 Due to their nominal exercise price of $ 0.0001 per share, 6,830,926 pre-funded warrants are considered common stock equivalents and are included in weighted average shares outstanding in the accompanying condensed consolidated statement of operations as of the closing date of the Company's public equity offering in January 2023. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, that requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about obligations outstanding at the end of the reporting period, including a rollforward of those obligations. The guidance does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. The new standard’s requirements to disclose the key terms of the programs and information about obligations outstanding are effective for fiscal years, including interim periods, beginning after December 15, 2022, except for the requirement to disclose a rollforward of obligations outstanding will be effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company has adopted this new standard, which did not have a material impact on its financial position and results of operations. |
Subsequent Events | Subsequent Events The Company evaluates whether there have been subsequent events through the date the financial statements were issued and determines whether subsequent events exist that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Revenue by Major Source | The following table presents revenue by major source: For the Three Months 2023 2022 Direct to patient $ 2,414,614 $ 1,852,144 Clinical/Medical providers 1,032,094 1,015,782 License revenue — 1,000,000 Total revenue from contracts with customers $ 3,446,708 $ 3,867,926 |
Summary of Potential Common Shares Issuable | Potential dilutive common shares issuable consist of the following at: March 31, 2023 2022 Stock options 28,327 32,381 Restricted stock units 681,884 279,847 Other warrants 668,250 693,643 Total 1,378,461 1,005,871 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following at: March 31, December 31, Finished goods $ 439,091 $ 512,028 Work in process 17,422 18,971 Rental units 51,694 51,694 Parts and subassemblies 1,133,617 903,581 1,641,824 1,486,274 Less: reserve for rental and trial units ( 76,556 ) ( 86,409 ) Inventories, net $ 1,565,268 $ 1,399,865 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash Equivalents Measured at Fair Value on Recurring Basis | Cash equivalents measured at fair value on a recurring basis at March 31, 2023 were as follows: In Active Significant Significant Total Cash equivalents $ 7,894,919 $ — $ — $ 7,894,919 Cash equivalents measured at fair value on a recurring basis at December 31, 2022 were as follows: In Active Significant Significant Total Cash equivalents $ 4,350,657 $ — $ — $ 4,350,657 |
Accounts payable and accrued _2
Accounts payable and accrued expense (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accounts Payable and Other Accrued Expenses | Accounts Payable and Other Accrued Expenses consists of the following at: March 31, December 31, Trade payables $ 906,805 $ 569,681 Accrued compensation and benefits 1,234,164 1,059,228 Accrued professional services 123,797 124,548 Warranty reserve 129,930 234,647 Customer deposits 932,589 753,232 Other 148,258 345,596 $ 3,475,543 $ 3,086,932 |
Stock Award Plans and Stock-b_2
Stock Award Plans and Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | The Company recognized stock-based compensation expense related to the issuance of stock option awards and restricted stock units to employees, non-employees and directors in the statements of operations as follows: Three Months Ended March 31, 2023 2022 Cost of goods sold $ 20,479 $ 14,755 Research and development ( 69,727 ) 29,612 Selling, general and administrative 220,275 221,903 Total $ 171,027 $ 266,270 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Maturity of Operating Lease Liabilities | The amount and the maturity of the Company’s operating lease liabilities as of March 31, 2023, are as follows: March 31, 2023 2023 (March 31 -December 31) $ 287,223 2024 159,872 2025 67,981 2026 — 2027 — Thereafter — Total future minimum lease payments 515,076 Less imputed interest 70,278 Total operating lease liabilities $ 444,798 Included in the condensed consolidated balance sheet: Current operating lease liabilities $ 275,028 Non-current operating lease liabilities 169,770 Total operating lease liabilities $ 444,798 |
Summary of Operating Lease Cost | For the three months ended March 31, 2023 and 2022, the total lease cost is comprised of the following amounts: For the Three Months 2023 2022 Operating lease expense 125,650 116,611 Short-term lease expense — 1,950 Total lease expense $ 125,650 $ 118,561 |
Summary of Additional Information Related to Operating Leases | The following summarizes additional information related to operating leases: March 31, 2023 Weighted-average remaining lease term (in years) 1.6 Weighted-average discount rate 20 % |
Description of Business - Addit
Description of Business - Additional Information (Detail) - USD ($) | 3 Months Ended | |||||
Jan. 31, 2023 | Jan. 17, 2023 | Aug. 02, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Net loss | $ 2,644,295 | $ 2,814,934 | ||||
Cash used in operating activities | 1,816,690 | $ 2,322,600 | ||||
Accumulated deficit | 91,427,539 | $ 88,783,244 | ||||
Sale of stock number of shares issued in transaction | 13,169,074 | |||||
Sales of prefunded warrants | 6,830,926 | |||||
Price per share | $ 0.325 | |||||
Per Sale Price of warrants | $ 0.3249 | |||||
Sale Of Stock Consideration Received On Transaction | $ 5,700,000 | |||||
Cost reduction activities | 12% | |||||
Utilities Operating Expense | $ 2,000,000 | |||||
Purchase agreement requires approval from shareholders | $ 5,000,000 | |||||
Shares value | $ 2,092 | $ 775 | ||||
Keystone Capital Partners [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Remaining capacity under its purchase agreement | 1,000,000 | |||||
A T M Facility [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Remaining capacity under its purchase agreement | 300,000 | |||||
Minimum | Keystone Capital Partners [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Price per share | $ 0.50 | |||||
Minimum | Keystone Capital Partners [Member] | Common Stock Purchase Agreement [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Committed to purchase | 1,399,334 | |||||
Maximum | Keystone Capital Partners [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares value | $ 5,000,000 |
Going Concern and Management'_2
Going Concern and Management's Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | |||||
Jan. 31, 2023 | Jan. 17, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Aug. 02, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Net loss | $ 2,644,300 | $ 2,815,000 | ||||
Accumulated deficit | 91,427,500 | $ 88,783,200 | ||||
Cash used in operating activities | $ 1,816,700 | $ 2,322,600 | ||||
Sale of stock number of shares issued in transaction | 13,169,074 | |||||
Sales of prefunded warrants | 6,830,926 | |||||
Price per share | $ 0.325 | |||||
Per sale price of warrants | $ 0.3249 | |||||
Sale of stock consideration received on transaction | $ 5,700,000 | |||||
Cost reduction activities | 12% | |||||
Utilities operating expense | $ 2,000,000 | |||||
Purchase agreement requires approval from shareholders | $ 5,000,000 | |||||
Keystone [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Remaining capacity under its purchase agreement | 1,000,000 | |||||
ATM Facility [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Remaining capacity under its purchase agreement | 300,000 | |||||
Minimum [Member] | Keystone [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Price per share | $ 0.50 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Mar. 28, 2022 | Apr. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Jan. 31, 2023 | Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Reclassifications out of accumulated other comprehensive loss | $ 0 | $ 0 | ||||
Cash consideration paid | 0 | $ 199,000 | ||||
Impairment charge | 0 | |||||
Loss on equity investment | $ 17,200 | |||||
Percentage of direct billing channel revenue insures represent | 63% | 53% | ||||
Revenue | $ 3,446,708 | $ 3,867,926 | ||||
Deferred revenue | 1,100 | $ 21,200 | ||||
Advertising expense | $ 691,500 | 953,400 | ||||
Warrants exercise price | $ 7.50 | $ 0.0001 | ||||
Common stock equivalents, pre-funded warrants | 6,830,926 | |||||
Accounting Standards Update 2014-09 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Cost of goods sold | $ 199,800 | $ 304,200 | ||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | United States [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of revenue | 80% | 57% | ||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | China [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of revenue | 26% | |||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Germany & Other International Locations [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of revenue | 17% | 15% | ||||
Beijing Ryzur Medical Investment Co., Ltd | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Upfront license fee | $ 2,700,000 | |||||
Beijing Ryzur Medical Investment Co., Ltd | Subsequent Event [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Upfront license fee | $ 1,700,000 | |||||
License revenue | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue | $ 0 | 1,000,000 | ||||
License revenue | Beijing Ryzur Medical Investment Co., Ltd | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue | 1,000,000 | |||||
O&P Providers or Third Party Payors [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Revenue recognized | $ 1,683,800 | $ 623,500 | ||||
Jiangxi Myomo Medical Assistive Appliance Co. Ltd | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Cash consideration paid | $ 199,000 | |||||
Ownership percentage | 19.90% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Revenue by Major Source (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customer | $ 3,446,708 | $ 3,867,926 |
Direct to Patient [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customer | 2,414,614 | 1,852,144 |
Clinical/Medical Providers [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customer | 1,032,094 | 1,015,782 |
License Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customer | $ 0 | $ 1,000,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Potential Common Shares Issuable (Detail) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 1,378,461 | 1,005,871 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 28,327 | 32,381 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 681,884 | 279,847 |
Other Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 668,250 | 693,643 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 439,091 | $ 512,028 |
Work in process | 17,422 | 18,971 |
Rental units | 51,694 | 51,694 |
Parts and subassemblies | 1,133,617 | 903,581 |
Total cost | 1,641,824 | 1,486,274 |
Less: reserve for rental units | (76,556) | (86,409) |
Inventories, net | $ 1,565,268 | $ 1,399,865 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Cash Equivalents Measured at Fair Value on Recurring Basis (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 7,894,919 | $ 4,350,657 |
In Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 7,894,919 | $ 4,350,657 |
Accounts payable and accrued _3
Accounts payable and accrued expenses - Summary of Accounts Payable and Other Accrued Expenses (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 906,805 | $ 569,681 |
Accrued compensation and benefits | 1,234,164 | 1,059,228 |
Accrued professional services | 123,797 | 124,548 |
Warranty reserve | 129,930 | 234,647 |
Customer deposits | 932,589 | 753,232 |
Other | 148,258 | 345,596 |
Total | $ 3,475,543 | $ 3,086,932 |
Common Stock and Warrants - Add
Common Stock and Warrants - Additional Information (Details) | 1 Months Ended | 3 Months Ended | |||||
Jan. 17, 2023 USD ($) $ / shares shares | Aug. 02, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) shares | Jan. 31, 2023 $ / shares | Dec. 31, 2022 USD ($) shares | |
Class of Stock [Line Items] | |||||||
Sale of stock number of shares issued in transaction | 13,169,074 | ||||||
Sales of prefunded warrants | 6,830,926 | ||||||
Per Sale Price of warrants | $ / shares | $ 0.3249 | ||||||
Sale Of Stock Consideration Received On Transaction | $ | $ 5,700,000 | ||||||
Nominal Exercise Value | $ / shares | $ 0.0001 | ||||||
Common stock, shares outstanding | 20,922,503 | 7,750,608 | |||||
Shares value | $ | $ 2,092 | $ 775 | |||||
Price per share | $ / shares | $ 0.325 | ||||||
Common stock warrants, exercise price per share | $ / shares | $ 7.50 | $ 0.0001 | |||||
Warrants Outstanding | 688,250 | ||||||
Warrants maturity date | Feb. 13, 2025 | ||||||
Warrants exercised | 0 | ||||||
Proceeds from exercise of warrants | $ | $ 3,708,045 | $ 0 | |||||
Number of shares, Vested | 2,821 | 10,151 | |||||
Keystone [Member] | |||||||
Class of Stock [Line Items] | |||||||
Beneficial ownership limitation | 4.99% | ||||||
Keystone [Member] | Minimum | |||||||
Class of Stock [Line Items] | |||||||
Price per share | $ / shares | $ 0.50 | ||||||
Keystone [Member] | Maximum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares value | $ | $ 5,000,000 | ||||||
Keystone [Member] | Common Stock Purchase Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Percentage increase in number of shares of common stock reserved and available for issuance | 10% | ||||||
Share issued | 50,000 | ||||||
Common stock, shares outstanding | 1,008,458 | ||||||
Beneficial ownership limitation | 19.99% | ||||||
Keystone [Member] | Common Stock Purchase Agreement [Member] | Minimum | |||||||
Class of Stock [Line Items] | |||||||
Committed to purchase | 1,399,334 | ||||||
A T M Facility [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares offer and sell | $ | $ 300,000 | ||||||
Percentage of gross proceeds from sales of common stock | 0.030 | ||||||
Stock issued during period | 0 | ||||||
A T M Facility [Member] | Maximum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from issuance of common stock | $ | $ 15,000,000 |
Stock Award Plans and Stock-b_3
Stock Award Plans and Stock-based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jan. 01, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit recognized | $ 0 | $ 0 | |
Number of stock options granted | 1,700 | ||
Stock award net share settled paid for withholding taxes | 0 | 0 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 47,400 | ||
Weighted-average remaining contractual term | 2 years 2 months 12 days | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1,185,300 | ||
Weighted-average remaining contractual term | 1 year 2 months 19 days | ||
2018 Stock Option and Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for future grant | 155,082 | ||
Number of common shares reserved for issuance | 310,024 | ||
Percentage increase in number of shares of common stock reserved and available for issuance | 4% |
Stock Award Plans and Stock-b_4
Stock Award Plans and Stock-based Compensation - Schedule of Grant Date Fair Value (Detail) | 3 Months Ended |
Mar. 31, 2023 shares | |
Share-Based Payment Arrangement [Abstract] | |
Number of options granted | 1,700 |
Stock Award Plans and Stock-b_5
Stock Award Plans and Stock-based Compensation - Schedule of Stock-based Compensation Expense (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | $ 171,027 | $ 266,270 |
Cost of Goods Sold [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | 20,479 | 14,755 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | (69,727) | 29,612 |
Selling, General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | $ 220,275 | $ 221,903 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) Customer | Mar. 31, 2022 Customer | Dec. 31, 2022 Customer | |
Commitments And Contingencies [Line Items] | |||
Description of operating lease agreement for office space | The Company has a non-cancelable sublease agreement for its corporate headquarters in Boston, MA expiring in 2023. In conjunction with entering into a non-cancelable lease agreement for its manufacturing space in Boston, the Company agreed to enter into a lease for its corporate headquarters, which together with its leased office space in Fort Worth, TX, both expire in 2025. The Fort Worth, TX, lease has the option to terminate early, which is available at the Company’s discretion in 2023. Termination options were not included in the lease term for the Company’s existing operating leases. Certain arrangements have discounted rent periods or escalating rent payment provisions. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets. We recognize rent expense on a straight-line basis over the lease term. | ||
Operating Lease Right Of Use Assets | $ 406,900 | ||
Loss Contingency | 135,000 | ||
Directors and Officers Insurance Member | |||
Commitments And Contingencies [Line Items] | |||
Finance program obligations | $ 43,000 | ||
Sales Revenue, Net [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of customers | Customer | 0 | 0 | |
Accounts Receivable [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of customers | Customer | 1 | 1 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | One U.S. Insurance Payer [Member] | |||
Commitments And Contingencies [Line Items] | |||
Percentage of revenue | 44% | 34% | |
Concentration Risk, Percentage | 44% | 34% | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Patients with Medicare Advantage Insurance Plans [Member] | |||
Commitments And Contingencies [Line Items] | |||
Percentage of revenue | 53% | 52% | |
Concentration Risk, Percentage | 53% | 52% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Insurer [Member] | |||
Commitments And Contingencies [Line Items] | |||
Percentage of revenue | 56% | 62% | |
Concentration Risk, Percentage | 56% | 62% |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Maturity of Operating Lease Liabilities (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
2023 (March 31 - December 31) | $ 287,223 | |
2024 | 159,872 | |
2025 | 67,981 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total future minimum lease payments | 515,076 | |
Less imputed interest | 70,278 | |
Total operating lease liabilities | 444,798 | |
Included in the condensed consolidated balance sheet: | ||
Current operating lease liability | 275,028 | $ 353,701 |
Non-current operating lease liability | 169,770 | $ 200,207 |
Total operating lease liabilities | $ 444,798 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Operating Lease Cost (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lease, Cost [Abstract] | ||
Operating lease expense | $ 125,650 | $ 116,611 |
Short-term lease expense | 1,950 | |
Total lease expense | $ 125,650 | $ 118,561 |
Commitments and Contingencies_4
Commitments and Contingencies - Summary of Additional Information Related to Operating Leases (Detail) | Mar. 31, 2023 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 1 year 7 months 6 days |
Weighted-average discount rate | 20% |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) | Apr. 06, 2023 USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Proceeds from License Fees Received | $ 1,715,000 |