Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 18, 2020 | |
Document And Entity Information [Abstract] | ||
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Entity Central Index Key | 0001427570 | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | OBALON THERAPEUTICS INC | |
Document Fiscal Year Focus | 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,731,633 | |
Amendment Flag | false | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 6,804 | $ 14,055 |
Accounts receivable, net | 0 | 285 |
Inventory | 0 | 1,936 |
Other current assets | 3,971 | 1,959 |
Total current assets | 10,775 | 18,235 |
Property and equipment, net | 1,055 | 1,081 |
Lease right-of-use assets | 748 | 1,077 |
Other long-term assets | 1,295 | 0 |
Total assets | 13,873 | 20,393 |
Current liabilities: | ||
Accounts payable | 1,054 | 648 |
Accrued compensation | 240 | 820 |
Deferred revenue | 123 | 424 |
Other current liabilities | 3,603 | 1,524 |
Current portion of lease liabilities | 579 | 561 |
Total current liabilities | 5,599 | 3,977 |
Lease liabilities long-term | 666 | 567 |
Long-term debt | 430 | 0 |
Total long-term liabilities | 1,096 | 567 |
Total liabilities | 6,695 | 4,544 |
Commitments and contingencies (See Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized as of June 30, 2020 and December 31, 2019; 7,731,633 and 7,724,100 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 8 | 8 |
Additional paid-in capital | 189,049 | 188,271 |
Accumulated deficit | (181,879) | (172,430) |
Total stockholders’ equity | 7,178 | 15,849 |
Total liabilities and stockholders’ equity | $ 13,873 | $ 20,393 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 7,731,633 | 7,724,100 |
Common stock, shares outstanding (in shares) | 7,731,633 | 7,724,100 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Revenue | $ 703 | $ 386 | $ 1,483 | $ 2,161 |
Cost of revenue | 423 | 679 | 964 | 1,911 |
Gross profit (deficit) | 280 | (293) | 519 | 250 |
Operating expenses: | ||||
Research and development | 765 | 1,788 | 2,022 | 4,227 |
Selling, general and administrative | 2,362 | 4,332 | 6,255 | 10,536 |
Asset impairment and other charges | 1,310 | 0 | 1,310 | 0 |
Total operating expenses | 4,437 | 6,120 | 9,587 | 14,763 |
Loss from operations | (4,157) | (6,413) | (9,068) | (14,513) |
Interest (expense) income, net | (5) | (295) | 30 | (485) |
Other expense, net | (26) | (59) | (411) | (59) |
Net loss | (4,188) | (6,767) | (9,449) | (15,057) |
Comprehensive loss | $ (4,188) | $ (6,767) | $ (9,449) | $ (15,057) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.54) | $ (2.52) | $ (1.22) | $ (6.02) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 7,728,624 | 2,687,829 | 7,726,915 | 2,500,619 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated deficit |
Beginning balance at Dec. 31, 2018 | $ 13,107 | $ 2 | $ 161,859 | $ (148,754) |
Beginning balance (in shares) at Dec. 31, 2018 | 2,351,333 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 1,105 | 1,105 | ||
Vesting of stock awards, net of cancellations | 1 | 1 | ||
Vesting of stock awards, net of cancellations (in shares) | 119 | |||
Vesting of early exercised stock options | 14 | 14 | ||
Issuance of common stock, net of issuance costs | 581 | $ 1 | 580 | |
Issuance of common stock, net of issuance costs (in shares) | 75,551 | |||
Cancellation of restricted stock awards | 0 | |||
Cancellation of restricted stock awards (in shares) | (2,051) | |||
Net loss | (8,290) | (8,290) | ||
Ending balance at Mar. 31, 2019 | 6,518 | $ 3 | 163,559 | (157,044) |
Ending balance (in shares) at Mar. 31, 2019 | 2,424,952 | |||
Beginning balance at Dec. 31, 2018 | 13,107 | $ 2 | 161,859 | (148,754) |
Beginning balance (in shares) at Dec. 31, 2018 | 2,351,333 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (15,057) | |||
Ending balance at Jun. 30, 2019 | 8,376 | $ 4 | 172,183 | (163,811) |
Ending balance (in shares) at Jun. 30, 2019 | 3,558,280 | |||
Beginning balance at Mar. 31, 2019 | 6,518 | $ 3 | 163,559 | (157,044) |
Beginning balance (in shares) at Mar. 31, 2019 | 2,424,952 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 536 | 536 | ||
Vesting of early exercised stock options | 15 | 15 | ||
Issuance of common stock, net of issuance costs | 8,074 | $ 1 | 8,073 | |
Issuance of common stock, net of issuance costs (in shares) | 1,158,187 | |||
Cancellation of restricted stock awards | $ 0 | |||
Cancellation of restricted stock awards (in shares) | (24,859) | |||
Net loss | $ (6,767) | (6,767) | ||
Ending balance at Jun. 30, 2019 | 8,376 | $ 4 | 172,183 | (163,811) |
Ending balance (in shares) at Jun. 30, 2019 | 3,558,280 | |||
Beginning balance at Dec. 31, 2019 | $ 15,849 | $ 8 | 188,271 | (172,430) |
Beginning balance (in shares) at Dec. 31, 2019 | 7,724,100 | 7,724,100 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | $ 470 | 470 | ||
Vesting of stock awards, net of cancellations | 0 | |||
Vesting of stock awards, net of cancellations (in shares) | 7,533 | |||
Vesting of early exercised stock options | 14 | 14 | ||
Net loss | (5,261) | (5,261) | ||
Ending balance at Mar. 31, 2020 | 11,072 | $ 8 | 188,755 | (177,691) |
Ending balance (in shares) at Mar. 31, 2020 | 7,731,633 | |||
Beginning balance at Dec. 31, 2019 | $ 15,849 | $ 8 | 188,271 | (172,430) |
Beginning balance (in shares) at Dec. 31, 2019 | 7,724,100 | 7,724,100 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Vesting of stock awards, net of cancellations (in shares) | 0 | |||
Net loss | $ (9,449) | |||
Ending balance at Jun. 30, 2020 | $ 7,178 | $ 8 | 189,049 | (181,879) |
Ending balance (in shares) at Jun. 30, 2020 | 7,731,633 | 7,731,633 | ||
Beginning balance at Mar. 31, 2020 | $ 11,072 | $ 8 | 188,755 | (177,691) |
Beginning balance (in shares) at Mar. 31, 2020 | 7,731,633 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 292 | 292 | ||
Vesting of early exercised stock options | 2 | 2 | ||
Net loss | (4,188) | (4,188) | ||
Ending balance at Jun. 30, 2020 | $ 7,178 | $ 8 | $ 189,049 | $ (181,879) |
Ending balance (in shares) at Jun. 30, 2020 | 7,731,633 | 7,731,633 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities: | ||
Net loss | $ (9,449) | $ (15,057) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 187 | 256 |
Stock-based compensation | 762 | 1,641 |
Loss on disposal of fixed assets | 0 | 95 |
Amortization of right-of-use assets | 239 | 186 |
Accretion of investment discount, net | 0 | (2) |
Amortization of debt discount | 0 | 70 |
Impairment of long-lived assets and other charges | 1,257 | 0 |
Impairment of inventory | 53 | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 285 | 423 |
Inventory | (524) | (157) |
Other current assets | (1,845) | 1,760 |
Accounts payable | 405 | (191) |
Accrued compensation | (564) | (2,712) |
Deferred revenue | (302) | (32) |
Lease liabilities, net | (147) | (136) |
Other current and long-term liabilities | 2,079 | (142) |
Net cash used in operating activities | (7,564) | (13,998) |
Investing activities: | ||
Maturities of short-term investments | 0 | 2,550 |
Purchases of property and equipment | (117) | (20) |
Net cash (used in) provided by investing activities | (117) | 2,530 |
Financing activities: | ||
Proceeds from long-term loan | 430 | 10,000 |
Payment on long-term loan | 0 | (15,000) |
Proceeds from issuance of common stock, net of issuance costs | 0 | 8,793 |
Proceeds from sale of common stock upon exercise of stock options | 0 | 1 |
Net cash provided by financing activities | 430 | 3,794 |
Net decrease in cash and cash equivalents | (7,251) | (7,674) |
Cash and cash equivalents at beginning of period | 14,055 | 21,187 |
Cash and cash equivalents at end of period | 6,804 | 13,513 |
Supplemental cash flow information: | ||
Interest paid | 0 | 563 |
Unpaid issuance costs | $ 0 | $ 377 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Obalon Therapeutics, Inc., or the Company, was incorporated in the state of Delaware on January 2, 2008. The Company is a vertically-integrated medical device company focused on developing and commercializing innovative medical devices to treat obesity. Using its patented technology, the Company has developed the Obalon® balloon system, the first and only U.S. Food and Drug Administration, or FDA, approved swallowable, gas-filled intragastric balloon designed to provide progressive and sustained weight loss in obese patients. The unaudited interim condensed consolidated financial statements include the accounts of Obalon Therapeutics, Inc., and its wholly owned subsidiary, Obalon Center for Weight Loss, Inc. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, and include the Company's accounts and accounts of its wholly-owned subsidiary. The Company also consolidates variable interest entities or VIE for which it is the primary beneficiary. The primary beneficiary has both (a) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (b) either the obligation to absorb losses or the right to receive benefits. Refer to Note 11, “Variable Interest Entity” for further details. All intercompany transactions and balances have been eliminated in consolidation. The Company’s principal operations are located in Carlsbad, California, and it operates in one business segment. Reverse Stock Split On July 24, 2019, the Company filed a certificate of amendment to its certificate of incorporation with the Secretary of State of the State of Delaware to effect a one-for-ten reverse split of its issued and outstanding common stock. The accompanying consolidated financial statements and notes thereto give retrospective effect to the reverse stock split for all periods presented. All issued and outstanding common stock, options exercisable for common stock, restricted stock units, performance restricted stock units, and per share amounts contained in the consolidated financial statements have been retrospectively adjusted to reflect this reverse stock split for all periods presented. The number of authorized shares of common stock was not changed by virtue of the reverse stock split and remained at 100.0 million shares. Liquidity As of June 30, 2020 , the Company has devoted a substantial portion of its efforts to product development, raising capital, and building infrastructure, and, since January 2017, U.S. commercialization. The Company has incurred operating losses and has experienced negative cash flows from operations since its inception. In July 2012, the Company realized initial revenue from its planned principal operations. The Company recognized total revenue of $0.7 million and $0.4 million for the three months ended June 30, 2020 and 2019 , respectively, and $1.5 million and $2.2 million for the six months ended June 30, 2020 and 2019 , respectively. Our revenue for the three months ended June 30, 2020 were primarily due to reversing various reserves related to revenue from customer incentive programs, swallow guarantee, and returns reserves as a result of stopping all commercial operations and underlying programs. However, the Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and has funded its activities to date almost exclusively from debt and equity financings. As reflected in the accompanying condensed consolidated financial statements, the Company has a limited operating history and the sales and income potential of the Company’s business are unproven. The Company has not been profitable since inception, and as of June 30, 2020 , its accumulated deficit was $181.9 million . Since inception, the Company has financed its operations primarily through private placements of its preferred stock, the sale of common stock in its IPO and in subsequent public offerings and private placements, and, to a lesser extent, debt financing arrangements. As of June 30, 2020 , the Company had cash and cash equivalents of $6.8 million . The Company expects to continue to incur net losses for the foreseeable future. The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. In late 2019, a novel strain of coronavirus, COVID-19, was reported to have surfaced in Wuhan, China. Since then, COVID-19 has spread globally. To date, COVID-19 has had, and will continue to have, an adverse impact on the Company’s operations and expenses as a result of the preventive and precautionary measures that the Company, its customers, other businesses, and governments are taking, including the deferral of elective medical procedures and diversion of capital and other resources. In March 2020, the Company suspended all new patient treatments at its Obalon-branded retail centers due to the ongoing COVID-19 pandemic. The Company has taken further steps to significantly reduce expenses in an effort to extend its cash runway while it evaluates potential business options, strategic alternatives and the potential for third-party payor reimbursement that may be available when and if the current COVID-19 crisis stabilizes and the economy rebounds. The Company has significantly reduced the organization to only essential personnel and expects that, after a transition at the end of July 2020, only two full-time employees will remain. All Obalon-branded retail centers have been shutdown with no intention to reopen, and the Company has halted plans for future retail center expansion. The Company does not expect to restart shipments to U.S. customers and has terminated the agreement with its international distributor, Al Danah Medical Company W.L.L. The decision to shift the Company's strategy to focus on pursuing reimbursement, while also evaluating other strategic options, occurred after the end of the first quarter of 2020. If the Company is unsuccessful in those two endeavors over the next several months, it may be forced to liquidate the business or pursue bankruptcy protection. As a result of the above factors, there is substantial doubt about the Company's ability to continue as a going concern for the twelve months following the issuance date of the unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies There were no significant changes to the accounting policies during the six months ended June 30, 2020 , from the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 27, 2020. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Reported amounts and note disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. Actual results could differ materially from those estimates. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Unaudited Interim Condensed Consolidated Financial Statements The interim condensed consolidated financial statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial position as of June 30, 2020 and its condensed consolidated results of operations for the three and six months ended June 30, 2020 and 2019 , statements of stockholders' equity for the three and six months ended June 30, 2020 and 2019 , and cash flows for the six months ended June 30, 2020 and 2019 . The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any other future annual or interim period. The balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date. These financial statements should be read in conjunction with the Company’s audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 , filed on February 27, 2020. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s comprehensive loss was the same as its reported net loss for all periods presented. Fair Value Measurements The carrying values of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair values due to the short maturity of these instruments. The carrying value of the loan approximates its fair value as the interest rate and other terms are that which are currently available to the Company. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with authoritative accounting guidance: ▪ Level 1 inputs: Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. ▪ Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ▪ Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents and trade accounts receivable, which are generally not collateralized. The Company limits its exposure to credit loss by placing its cash equivalents with high credit quality financial institutions and investing in high quality short-term debt instruments. The Company’s customers consisted of physicians and institutions in the United States and one international distributor. The Company establishes customer credit policies related to its accounts receivable based on historical collection experiences within the various markets in which the Company operates, historical past-due amounts, and any specific information that the Company becomes aware of such as bankruptcy or liquidity issues of customers. The following table summarizes certain financial data for the customers who accounted for 10.0% or more of sales and accounts receivable. Three Months Ended Six Months Ended 2020 2019 2020 2019 Revenue: Customer A — % — % 16.2 % — % Customer B — % — % — % 27.2 % Customer C 5.8 % 50.5 % 3.0 % 20.6 % June 30, 2020 December 31, 2019 Accounts receivable: Customer A — % — % Customer B — % — % Customer C — % 20.8 % The Company's largest customer for the three and six months ended June 30, 2020 was New York Bariatric Group and Al Danah Medical Company W.L.L., respectively. The revenue from New York Bariatric Group for the three months ended June 30, 2020 related to certain reversals of prior revenue reserves and did not represent actual sales during the period. The largest customer for the three and six months ended June 30, 2019 was Bader Sultan & Bros. Co. W.L.L. There were no other international sales aside from sales to Al Danah Medical Company W.L.L. for the three and six months ended June 30, 2020 . Inventory Inventory is stated at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value, computed on a standard cost basis. Inventory that is obsolete or is in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand. Inventory write-downs are charged to cost of revenue and establish a new cost basis for the inventory. The Company evaluated whether the shift in business strategy to pursue a reimbursement model was indicative of inventory impairment. The Company performed an impairment assessment on its inventory stock and recognized $0.1 million in impairment charges for the three months ended June 30, 2020 related to excess inventory not expected to be used in clinical trials to pursue reimbursement. The Company determined that the remaining inventory balance has an alternative future use in clinical trials and reclassified it to other current assets and other long-term assets. As a result, the Company does not have any inventory as of June 30, 2020. Impairment of Long-Lived Assets The Company evaluates property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amount of the assets to the future undiscounted net cash flows, which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured as the difference between the carrying amount and the fair value of the impaired asset. In light of the Company's shift in business strategy from the Obalon-branded retail treatment center model to a reimbursement model, the Company performed an impairment analysis on its long-lived assets and recognized $1.2 million in impairment charges for the three months ended June 30, 2020 relating to the assets as the Company's previous retail treatment centers. Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per common share, since the effects of potentially dilutive securities are anti-dilutive due to the net loss position of all periods presented. Potentially dilutive common stock equivalents are comprised of warrants, if material, unvested restricted stock awards (RSAs), and unexercised stock options outstanding under the Company’s equity plan. Recently Issued and Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820); Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This guidance removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. Certain disclosures required by this guidance must be applied on a retrospective basis and others on a prospective basis. The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The adoption of the new standard did not have a material impact on the Company's interim condensed consolidated financial statements. Recently Issued Accounting Pronouncements not yet adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses, which changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. In February 2020, the FASB issued ASU 2020-02, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) , which amends the effective date of the original pronouncement for smaller reporting companies. ASU 2016-13 and its amendments will be effective for the Company for interim and annual periods in fiscal years beginning after December 15, 2022. The Company believes the adoption will modify the way the Company analyzes financial instruments, but it does not anticipate a material impact on results of operations. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements. In December 2019, the FASB issued authoritative guidance intended to simplify the accounting for income taxes: ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This guidance eliminates certain exceptions to the general approach to the income tax accounting model and adds new guidance to reduce the complexity in accounting for income taxes. This guidance is effective for annual periods after December 15, 2020, including interim periods within those annual periods. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Instruments Recorded at Fair Value on a Recurring Basis The Company has segregated all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. Assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 are as follows (in thousands): Fair value measurements at reporting date using Balance as of June 30, 2020 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash $ 724 $ 724 Cash equivalents: Money market funds 6,080 6,080 $ — $ — Total assets $ 6,804 $ 6,804 $ — $ — Fair value measurements at reporting date using Balance as of December 31, 2019 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash $ 1,012 $ 1,012 Cash equivalents: Money market funds 13,043 13,043 Total assets $ 14,055 $ 14,055 $ — $ — The Company’s investments in Level 1 assets are valued based on publicly available quoted market prices for identical securities as of June 30, 2020 and December 31, 2019 . Instruments Not Recorded at Fair Value on a Recurring Basis The estimated fair value of the Company's long-term loan is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. The recorded value of the Company's long-term loan approximates the current fair value as the interest rate and other terms are more favorable than that which are currently available to the Company. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except shares and per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net loss $ (4,188 ) $ (6,767 ) $ (9,449 ) $ (15,057 ) Weighted-average common shares outstanding, basic and diluted 7,728,624 2,687,829 7,726,915 2,500,619 Net loss per share, basic and diluted $ (0.54 ) $ (2.52 ) $ (1.22 ) $ (6.02 ) The following table sets forth the outstanding potentially dilutive securities determined using the treasury stock method that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Stock options to purchase common stock — — — 112,892 Total — — — 112,892 |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Jun. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Inventory consist of the following (in thousands): June 30, 2020 December 31, 2019 Raw materials $ — $ 1,835 Work in process — 12 Finished goods — 89 Total $ — $ 1,936 As noted in Note 2, the current economic environment along with the shift in business resulted in the Company reclassifying inventory to other current and long term assets as the Company has no intention to sell these assets but instead plans to use them for clinical trials. Additionally, the Company recorded an impairment charge of $0.1 million for the three months ended June 30, 2020 related to certain excess inventory. Other current assets consist of the following (in thousands): June 30, 2020 December 31, 2019 Prepaid expenses $ 640 $ 1,890 Insurance receivable 3,150 — Manufacturing use assets 166 — Other assets 15 69 Total $ 3,971 $ 1,959 Property and equipment, net consist of the following (in thousands): June 30, 2020 December 31, 2019 Computer hardware $ 259 $ 263 Computer software 274 291 Leasehold improvements 427 497 Furniture and fixtures 179 247 Scientific equipment 1,968 1,999 Construction in progress, or CIP 406 110 3,513 3,407 Less: accumulated depreciation (2,458 ) (2,326 ) Total $ 1,055 $ 1,081 Depreciation expense was $0.1 million for both the three months ended June 30, 2020 and 2019 and $0.2 million and $0.3 million for the six months ended June 30, 2020 and 2019, respectively. As noted in Note 2, the current economic environment along with the shift in business focus is an impairment triggering event for the other long-lived assets. This resulted in impairment and other charges of $1.3 million for the three months ended June 30, 2020. Based upon the Company's analysis, no other asset impairment charge was recorded. Other long-term assets consists entirely of manufacturing use assets as of June 30, 2020. Other current liabilities consist of the following (in thousands): June 30, 2020 December 31, 2019 Accrued legal and professional fees $ 93 $ 412 Accrued customer incentives — 198 Accrued sales and other taxes 83 107 Returns reserve liability — 315 Settlement accrual 3,150 — Other accrued expenses 277 492 Total $ 3,603 $ 1,524 |
Loan
Loan | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Loan | Loan Payroll Protection Program Loan On April 22, 2020, the Company executed a promissory note (the “Note”) with Silicon Valley Bank (the “Lender”) evidencing an unsecured loan in the aggregate principal amount of $0.4 million (the “PPP Loan”), which was made pursuant to the Paycheck Protection Program (the “PPP”). The PPP was established under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), which was enacted on March 27, 2020, and is administered by the U.S. Small Business Administration (“SBA”). All the funds under the PPP Loan were disbursed to the Company on April 23, 2020. The Note provides for a fixed interest rate of one percent per year with a maturity date of April 22, 2022 (the “Maturity Date”). Monthly principal and interest payments due on the PPP Loan are deferred for a six -month period beginning from the date of disbursement of the PPP Loan. The PPP Loan may be prepaid by the Company at any time prior to the Maturity Date with no prepayment penalties or premiums. The Note contains customary event of default provisions. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loans granted under the PPP. Such forgiveness will be subject to approval by the SBA and the Lender and determined, subject to limitations, based on factors set forth in the CARES Act, including verification of the use of loan proceeds for payment of payroll costs and payments of mortgage interest, rent and utilities. In the event the PPP Loan, or any portion thereof, is forgiven, the amount forgiven is applied to outstanding principal. The terms of any forgiveness may also be subject to further regulations and guidelines that the SBA may adopt. The Company will carefully monitor all qualifying expenses and other requirements necessary to attain loan forgiveness; however, no assurance is provided that the Company will obtain forgiveness of the PPP Loan in whole or in part. As of June 30, 2020, the Company has used all proceeds from the PPP Loan to retain employees, maintain payroll and make lease and utility payments. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plan As of June 30, 2020 , 1,012,669 stock options and awards remained available for future grant under the 2016 Equity Incentive Plan. No other plans had options or awards available for grant. The Company recorded total non-cash compensation, including non-cash compensation to employees and nonemployees in the consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended June 30, Six Months Ended 2020 2019 2020 2019 Cost of revenue $ — $ (65 ) $ 1 $ (26 ) Research and development 59 191 157 410 Selling, general and administrative 233 410 604 1,257 Total $ 292 $ 536 $ 762 $ 1,641 Unrecognized stock-based compensation expense at June 30, 2020 for all stock-based compensation pertaining to options was approximately $0.6 million , which is expected to be recognized over a weighted-average term of 2.5 years . Incentive Stock Options The following table summarizes stock option transactions for the 2016 Equity Incentive Plan for the six months ended June 30, 2020 (in thousands, except shares and per share data): Number of shares Weighted- average exercise price per share Weighted- average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2019 518,468 $ 38.64 Options granted 463,000 0.80 Options exercised — — Options canceled (191,450 ) 30.03 Outstanding at June 30, 2020 790,018 $ 18.55 8.36 $ — Vested and expected to vest at June 30, 2020 693,494 $ 20.89 8.15 $ — Vested and exercisable at June 30, 2020 284,649 $ 46.65 5.76 $ — The weighted-average fair value of options granted during the six months ended June 30, 2020 was $1.12 . Restricted Stock Awards The following table summarizes restricted stock award transactions for the 2016 Equity Incentive Plan for the six months ended June 30, 2020: Number of awards Weighted- average grant date fair value Outstanding at December 31, 2019 29,524 $ 39.64 Awards granted — — Awards released (26,524 ) 36.03 Awards canceled — — Outstanding at June 30, 2020 3,000 $ 71.50 The Company's current restricted stock awards vest 100% at various terms from the grant date, subject to continued employment. The fair-value of each restricted stock award is determined on the grant date using the closing price of the Company's common stock on the grant date. Unamortized expense of $0.1 million is expected to be recognized over a weighted-average period of 1.0 year . Restricted Stock Units The following table summarizes restricted stock unit transactions for the 2016 Equity Incentive Plan for the six months ended June 30, 2020: Number of shares Weighted-average grant date fair value Aggregate intrinsic value (in thousands) Outstanding at December 31, 2019 55,574 $ 11.70 Awards granted 816,081 1.88 Awards released (8,696 ) 23.00 Awards canceled (816,081 ) 1.88 Outstanding at June 30, 2020 46,878 $ 9.60 $ 33 Vested and expected to vest at June 30, 2020 46,470 $ 9.60 $ 33 The Company's current restricted stock units vest 100% at various terms from the grant date, subject to continued service. The fair-value of each restricted stock unit is determined on the grant date using the closing price of the Company's common stock on the grant date. An immaterial amount of unamortized expense is expected to be recognized over a weighted-average period of 0.1 years . |
Stockholder's Equity
Stockholder's Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholder's Equity Public Offering and related warrants On August 1, 2019, the Company entered into an underwriting agreement with A.G.P./Alliance Global Partners, as underwriter, in connection with a public offering of the Company's securities, pursuant to which the Company issued and sold (i) 2,427,500 shares of common stock (including 412,500 shares of common stock pursuant to the partial exercise of the underwriters’ over-allotment option to purchase 562,500 additional shares), (ii) pre-funded warrants to purchase up to 1,735,000 shares of common stock (“Pre-funded Warrants”), (iii) accompanying warrants to purchase up to 3,234,375 shares of common stock (including the exercise in full of the underwriters’ over-allotment option to purchase additional warrants to purchase 421,875 shares of common stock) (“Purchase Warrants”) and (iv) an additional warrant to the underwriters for the purchase 37,500 shares of common stock (“Representative Warrant”). The offering was made pursuant to a registration statement on Form S-1. The offering closed on August 6, 2019 resulting in gross proceeds of approximately $15.4 million . The Company incurred $0.7 million of legal, accounting, and other fees related to the offering. The shares of common stock and accompanying Purchase Warrants were sold at a public offering price of $4.00 per share, the Pre-funded Warrants and accompanying Purchase Warrants were sold at a public offering of $3.999 . The Purchase Warrants were immediately exercisable upon issuance, will expire on August 6, 2024 and have an exercise price of $4.40 and the Representative Warrant has an exercise price of $5.00 , in each case subject to adjustment in the event of stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events. The Representative Warrant became exercisable in February 2020 and expires on August 6, 2024. All of the Pre-funded warrants were exercised during the third quarter of 2019. None of the Purchase or Representative Warrants have been exercised as of June 30, 2020. All of the warrants are recorded within equity in accordance with authoritative accounting guidance. Lincoln Park Purchase Agreement On February 5, 2020, the Company entered into a new purchase agreement (the “Purchase Agreement”) and registration rights agreement (the “Registration Rights Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to which Lincoln Park has committed to purchase up to $15.0 million of the Company’s common stock, $0.001 par value per share (the “Common Stock”). The new Purchase Agreement replaces an existing purchase agreement, dated December 27, 2018, by and between the Company and Lincoln Park, pursuant to which Lincoln Park committed to purchase up to $20.0 million of the Company’s Common Stock. In connection with entering into the new Purchase Agreement, the Company and Lincoln Park terminated the prior purchase agreement, effective February 5, 2020. Under the terms and subject to the conditions of the Purchase Agreement, the Company has the right, but not the obligation, to sell to Lincoln Park, and Lincoln Park is obligated to purchase up to $15.0 million of the Company’s Common Stock. Such sales of common stock by the Company, if any, will be subject to certain limitations, and may occur from time to time, at the Company’s sole discretion, over the 36 -month period commencing on February 28, 2020 date that a registration statement covering the resale of shares of Common Stock that have been and may be issued under the Purchase Agreement, which the Company agreed to file with the Securities and Exchange Commission (the “SEC”) pursuant to the Registration Rights Agreement, was declared effective by the SEC and a final prospectus in connection therewith was filed and the other conditions set forth in the purchase agreement were satisfied (such date on which all of such conditions are satisfied, the “Commencement Date”). The Company incurred approximately $0.3 million of legal, accounting, and other fees related to the offering. As of June 30, 2020 the Company has not sold any shares under the Purchase Agreement to Lincoln Park. The Company determined that there is a low probability that the equity line will be utilized for the remainder of 2020 due to adverse market circumstances. As a result, the Company fully expensed the $0.3 million of fees in March 2020. Common Stock Reserved for Future Issuance Common stock reserved for future issuance consists of the following as of June 30, 2020 : Stock options issued and outstanding 790,018 Restricted stock units issued and outstanding 46,878 Warrants issued and outstanding 3,271,875 Authorized for future option and ongoing vesting of award grants 1,012,669 Authorized for future issuance under ESPP 190,222 Total 5,311,662 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and six months June 30, 2020 and 2019 , the Company did not record an income tax provision. The U.S. federal and California deferred tax assets generated from the Company’s net operating losses have been fully reserved, as the Company believes it is more likely than not the benefit will not be realized. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease The Company leases its facilities and retail treatment center under noncancelable operating leases which expire on various dates between 2022 and 2025. In July 2019, the Company entered into an office lease agreement to launch an Obalon-branded retail treatment center in San Diego, California, which expires on August 5, 2021. In January 2020, the Company entered into lease agreements for two additional Obalon-branded retail treatment centers in Orange County, California and Sacramento, California, respectively. Under the terms of the facilities and retail center leases, the Company is required to pay its proportionate share of property taxes, insurance and normal maintenance costs. The treatment center leases in Sacramento and San Diego were terminated on April 29, 2020 and May 27, 2020, respectively as a result in the Company's shift in strategy away from the retail treatment center model in the second quarter of 2020. The Company has not paid rent under the Orange County lease or its lease for its headquarters in Carlsbad, since April 2020. The Company’s landlord in Carlsbad, Gildred Development Company, has since sent a demand letter for rent. During the three months ended June 30, 2020, the Company recorded a $0.4 million charge to fully write off the Orange County right-of-use asset as the center will not be functioning. Upon the Company’s adoption of ASC 842 as of January 1, 2019, the Company recognized a ROU asset and lease liability for its building lease, assuming a 7.0% discount rate. Any short-term leases defined as 12 months or less or month-to-month leases were excluded and continue to be expensed each month. Total costs associated with short-term leases for the three months ended June 30, 2020 were immaterial. The Company determines if an arrangement is a lease at inception. The exercise of lease renewal options is at the Company’s sole discretion and were not included in the calculation of the Company’s lease liability as the Company is not able to determine without uncertainty if the renewal option will be exercised. The depreciable life of assets and leasehold improvements are limited to the expected term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company’s lease agreements do not contain any variable lease payments, residual value guarantees or any restrictive covenants. The Company’s ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease or the ASC 842 adoption date, whichever is later, based on the present value of lease payments over the lease term. When readily determinable, the Company uses the implicit rate in determining the present value of lease payments, or 7.0% , as of the adoption date. When leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date or adoption date, including the lease term. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company recorded an immaterial amount of lease liabilities, ROU assets, and interest expense associated with finance leases as of and for the three months ended June 30, 2020. The current and long-term portions of operating and finance lease liabilities are presented within the current portion of lease liabilities and lease liabilities long-term line items on the consolidated balance sheet, respectively. Operating and finance lease ROU assets are presented within the lease right-of-use assets line item on the consolidated balance sheet. Future minimum annual lease payments under such leases were as follows as of June 30, 2020 (in thousands): Operating leases: Remainder of 2020 $ 269 2021 564 2022 219 2023 105 2024 108 2025 37 Total undiscounted lease payments - operating leases 1,302 Finance leases: Remainder of 2020 12 2021 24 Total undiscounted lease payments - finance leases 36 Total undiscounted lease payments 1,338 Less: imputed interest (93 ) Lease liability 1,245 Less: current portion of lease liability (579 ) Lease liability, less current portion $ 666 As of June 30, 2019, the Company’s remaining lease term ranges from 1.7 to 4.8 years . Rent expense totaled $0.1 million for both the three months ended June 30, 2020 and 2019 and $0.3 million and $0.2 million for the six months ended June 30, 2020 and 2019, respectively. The Company paid $0.1 million and $0.2 million of cash payments related to its operating lease agreement for the three and six months ended June 30, 2020, respectively. The Company's weighted average discount rate for leases as of June 30, 2020 was 6.0% . Supplier Contracts The Company enters into contracts in the normal course of business with clinical trial sites and clinical supply manufacturing organizations and with vendors for preclinical studies, research supplies and other services and products for operating purposes. These contracts generally provide for termination after a notice period, and, therefore, are cancelable contracts. Shareholder Lawsuit On February 14 and 22, 2018, plaintiff stockholders filed class action lawsuits against us and certain of our executive officers in the United States District Court for the Southern District of California (Hustig v. Obalon Therapeutics, Inc., et al., Case No. 3:18-cv-00352-AJB-WVG, and Cook v. Obalon Therapeutics, Inc. et al., Case No. 3:18-cv-00407-CAB-RBB). On July 24, 2018, the court consolidated the lawsuits and appointed Inter-Local Pension Fund GCC/IBT as lead plaintiff. On October 5, 2018, plaintiffs filed an amended complaint. The amended complaint alleges that we and certain of our executive officers made false and misleading statements and failed to disclose material adverse facts about our business, operations, and prospects in violation of Sections 10(b) (and Rule 10b-5 promulgated thereunder) and 20(a) of the Exchange Act. The amended complaint also alleges violations of Section 11 of the Exchange Act arising out of the Company’s initial public offering. The plaintiffs seek damages, interest, costs, attorneys' fees, and other unspecified equitable relief. The underwriters from our initial public offering have also been named as defendants in this case and we have certain obligations under the underwriting agreement to indemnify them for their costs and expenses incurred in connection with this litigation. On September 25, 2019, the court granted in part and denied in part the defendants’ motion to dismiss. The court dismissed the Section 11 claims entirely, without leave to amend, and accordingly dismissed the underwriters and certain directors from the case. The Court also dismissed certain statements from the Section 10 claims. On June 16, 2020, the parties reached a settlement of the securities class action, and they intend to submit a final settlement agreement for court approval. The settlement provides for a payment of $3.15 million to the plaintiffs, and provides that the defendants continue to deny the allegations and claims asserted by the plaintiffs, and are entering into the settlement solely to eliminate the burden and expense of further litigation. The Company expects that any amounts due as part of the settlement will be covered by the Company’s insurance policies. As of June 30, 2020, the Company recorded a settlement accrual and corresponding insurance receivable for $3.15 million on the other current liabilities and other current assets lines on the condensed consolidated balance sheets, respectively. |
Variable Interest Entity
Variable Interest Entity | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity In conjunction with the Company’s strategic focus to open weight loss treatment centers to provide medical services to patients who wish to lose weight through the Obalon balloon system, the Company entered into a consulting agreement with a lead doctor to open the first treatment center and oversee the treatment center’s activities. The treatment center was opened in September 2019 as a professional corporation (“PC”) in the State of California and, as a result of state regulatory requirements, may not be owned by a corporation. The Company fully funds all the activities of the treatment center and no financial contributions are made by the lead doctor. In addition, the Company is authorized and expected to provide daily oversight of the activities of the center, with the exception of directly providing medical services. As the PC’s equity investment at risk is not sufficient to permit the entity to finance its activities without subordinated financial support, the PC is considered a variable interest entity. Although the Company does not own any equity interest in the PC, the Company holds the controlling financial interest as the sole funding source for the entity and through the ability to provide daily oversight. Therefore, the Company was determined to be the primary beneficiary of the PC and consolidated the PC’s balances and activity within its condensed consolidated financial statements. For the six months ended June 30, 2020, the PC recognized $0.3 million of deferred revenue associated with prepaid services at the treatment center, which is fully presented in the condensed consolidated balance sheet of the Company at June 30, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Reported amounts and note disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. Actual results could differ materially from those estimates. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. |
Unaudited Interim Condensed Consolidated Financial Statements | Unaudited Interim Condensed Consolidated Financial Statements The interim condensed consolidated financial statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial position as of June 30, 2020 and its condensed consolidated results of operations for the three and six months ended June 30, 2020 and 2019 , statements of stockholders' equity for the three and six months ended June 30, 2020 and 2019 , and cash flows for the six months ended June 30, 2020 and 2019 . The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any other future annual or interim period. The balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date. These financial statements should be read in conjunction with the Company’s audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 , filed on February 27, 2020. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s comprehensive loss was the same as its reported net loss for all periods presented. |
Fair Value Measurements | Fair Value Measurements The carrying values of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair values due to the short maturity of these instruments. The carrying value of the loan approximates its fair value as the interest rate and other terms are that which are currently available to the Company. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with authoritative accounting guidance: ▪ Level 1 inputs: Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. ▪ Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ▪ Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents and trade accounts receivable, which are generally not collateralized. The Company limits its exposure to credit loss by placing its cash equivalents with high credit quality financial institutions and investing in high quality short-term debt instruments. The Company’s customers consisted of physicians and institutions in the United States and one international distributor. The Company establishes customer credit policies related to its accounts receivable based on historical collection experiences within the various markets in which the Company operates, historical past-due amounts, and any specific information that the Company becomes aware of such as bankruptcy or liquidity issues of customers. |
Inventory | Inventory Inventory is stated at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value, computed on a standard cost basis. Inventory that is obsolete or is in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand. Inventory write-downs are charged to cost of revenue and establish a new cost basis for the inventory. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amount of the assets to the future undiscounted net cash flows, which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured as the difference between the carrying amount and the fair value of the impaired asset. |
Net Loss per Share | Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per common share, since the effects of potentially dilutive securities are anti-dilutive due to the net loss position of all periods presented. Potentially dilutive common stock equivalents are comprised of warrants, if material, unvested restricted stock awards (RSAs), and unexercised stock options outstanding under the Company’s equity plan. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820); Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This guidance removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. Certain disclosures required by this guidance must be applied on a retrospective basis and others on a prospective basis. The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The adoption of the new standard did not have a material impact on the Company's interim condensed consolidated financial statements. Recently Issued Accounting Pronouncements not yet adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses, which changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. In February 2020, the FASB issued ASU 2020-02, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) , which amends the effective date of the original pronouncement for smaller reporting companies. ASU 2016-13 and its amendments will be effective for the Company for interim and annual periods in fiscal years beginning after December 15, 2022. The Company believes the adoption will modify the way the Company analyzes financial instruments, but it does not anticipate a material impact on results of operations. The Company is in the process of determining the effects the adoption will have on its consolidated financial statements. In December 2019, the FASB issued authoritative guidance intended to simplify the accounting for income taxes: ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This guidance eliminates certain exceptions to the general approach to the income tax accounting model and adds new guidance to reduce the complexity in accounting for income taxes. This guidance is effective for annual periods after December 15, 2020, including interim periods within those annual periods. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Concentration Risk | The following table summarizes certain financial data for the customers who accounted for 10.0% or more of sales and accounts receivable. Three Months Ended Six Months Ended 2020 2019 2020 2019 Revenue: Customer A — % — % 16.2 % — % Customer B — % — % — % 27.2 % Customer C 5.8 % 50.5 % 3.0 % 20.6 % June 30, 2020 December 31, 2019 Accounts receivable: Customer A — % — % Customer B — % — % Customer C — % 20.8 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 are as follows (in thousands): Fair value measurements at reporting date using Balance as of June 30, 2020 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash $ 724 $ 724 Cash equivalents: Money market funds 6,080 6,080 $ — $ — Total assets $ 6,804 $ 6,804 $ — $ — Fair value measurements at reporting date using Balance as of December 31, 2019 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash $ 1,012 $ 1,012 Cash equivalents: Money market funds 13,043 13,043 Total assets $ 14,055 $ 14,055 $ — $ — |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss per Share of Common Stock | The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except shares and per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net loss $ (4,188 ) $ (6,767 ) $ (9,449 ) $ (15,057 ) Weighted-average common shares outstanding, basic and diluted 7,728,624 2,687,829 7,726,915 2,500,619 Net loss per share, basic and diluted $ (0.54 ) $ (2.52 ) $ (1.22 ) $ (6.02 ) |
Schedule of Anti-Dilutive Common Stock Equivalents Excluded from the Calculation of Diluted Net Loss Per Share | The following table sets forth the outstanding potentially dilutive securities determined using the treasury stock method that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Stock options to purchase common stock — — — 112,892 Total — — — 112,892 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventory | Inventory consist of the following (in thousands): June 30, 2020 December 31, 2019 Raw materials $ — $ 1,835 Work in process — 12 Finished goods — 89 Total $ — $ 1,936 |
Schedule of Other Current Assets | Other current assets consist of the following (in thousands): June 30, 2020 December 31, 2019 Prepaid expenses $ 640 $ 1,890 Insurance receivable 3,150 — Manufacturing use assets 166 — Other assets 15 69 Total $ 3,971 $ 1,959 |
Schedule of Property and Equipment, Net | Property and equipment, net consist of the following (in thousands): June 30, 2020 December 31, 2019 Computer hardware $ 259 $ 263 Computer software 274 291 Leasehold improvements 427 497 Furniture and fixtures 179 247 Scientific equipment 1,968 1,999 Construction in progress, or CIP 406 110 3,513 3,407 Less: accumulated depreciation (2,458 ) (2,326 ) Total $ 1,055 $ 1,081 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): June 30, 2020 December 31, 2019 Accrued legal and professional fees $ 93 $ 412 Accrued customer incentives — 198 Accrued sales and other taxes 83 107 Returns reserve liability — 315 Settlement accrual 3,150 — Other accrued expenses 277 492 Total $ 3,603 $ 1,524 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation | The Company recorded total non-cash compensation, including non-cash compensation to employees and nonemployees in the consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended June 30, Six Months Ended 2020 2019 2020 2019 Cost of revenue $ — $ (65 ) $ 1 $ (26 ) Research and development 59 191 157 410 Selling, general and administrative 233 410 604 1,257 Total $ 292 $ 536 $ 762 $ 1,641 |
Summary of Stock Option Transactions | The following table summarizes stock option transactions for the 2016 Equity Incentive Plan for the six months ended June 30, 2020 (in thousands, except shares and per share data): Number of shares Weighted- average exercise price per share Weighted- average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2019 518,468 $ 38.64 Options granted 463,000 0.80 Options exercised — — Options canceled (191,450 ) 30.03 Outstanding at June 30, 2020 790,018 $ 18.55 8.36 $ — Vested and expected to vest at June 30, 2020 693,494 $ 20.89 8.15 $ — Vested and exercisable at June 30, 2020 284,649 $ 46.65 5.76 $ — |
Summary of Restricted Stock Awards | The following table summarizes restricted stock award transactions for the 2016 Equity Incentive Plan for the six months ended June 30, 2020: Number of awards Weighted- average grant date fair value Outstanding at December 31, 2019 29,524 $ 39.64 Awards granted — — Awards released (26,524 ) 36.03 Awards canceled — — Outstanding at June 30, 2020 3,000 $ 71.50 |
Summary of Restricted Stock Units | The following table summarizes restricted stock unit transactions for the 2016 Equity Incentive Plan for the six months ended June 30, 2020: Number of shares Weighted-average grant date fair value Aggregate intrinsic value (in thousands) Outstanding at December 31, 2019 55,574 $ 11.70 Awards granted 816,081 1.88 Awards released (8,696 ) 23.00 Awards canceled (816,081 ) 1.88 Outstanding at June 30, 2020 46,878 $ 9.60 $ 33 Vested and expected to vest at June 30, 2020 46,470 $ 9.60 $ 33 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance consists of the following as of June 30, 2020 : Stock options issued and outstanding 790,018 Restricted stock units issued and outstanding 46,878 Warrants issued and outstanding 3,271,875 Authorized for future option and ongoing vesting of award grants 1,012,669 Authorized for future issuance under ESPP 190,222 Total 5,311,662 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Noncancelable Minimum Payment Obligations Under Operating Lease | Future minimum annual lease payments under such leases were as follows as of June 30, 2020 (in thousands): Operating leases: Remainder of 2020 $ 269 2021 564 2022 219 2023 105 2024 108 2025 37 Total undiscounted lease payments - operating leases 1,302 Finance leases: Remainder of 2020 12 2021 24 Total undiscounted lease payments - finance leases 36 Total undiscounted lease payments 1,338 Less: imputed interest (93 ) Lease liability 1,245 Less: current portion of lease liability (579 ) Lease liability, less current portion $ 666 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Detail) $ in Thousands | Jul. 24, 2019shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segmentshares | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)shares |
Accounting Policies [Abstract] | ||||||
Number of operating segments | segment | 1 | |||||
Reverse stock split conversion ratio | 0.10 | |||||
Common stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||
Revenue | $ 703 | $ 386 | $ 1,483 | $ 2,161 | ||
Accumulated deficit | 181,879 | 181,879 | $ 172,430 | |||
Cash and cash equivalents | $ 6,804 | $ 6,804 | $ 14,055 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Customer Concentration Risk (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue: | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 0.00% | 0.00% | 16.20% | 0.00% | |
Revenue: | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 0.00% | 0.00% | 0.00% | 27.20% | |
Revenue: | Customer C | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 5.80% | 50.50% | 3.00% | 20.60% | |
Accounts receivable: | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 0.00% | ||||
Accounts receivable: | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 0.00% | 0.00% | |||
Accounts receivable: | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 0.00% | ||||
Accounts receivable: | Customer C | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 0.00% | 20.80% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | |||
Impairment of inventory | $ 100 | $ 53 | $ 0 |
Impairment of long-lived assets and other charges | $ 1,200 | $ 1,257 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | $ 6,804 | $ 14,055 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 6,804 | 14,055 |
Significant other observable inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Significant unobservable inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Cash | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 724 | 1,012 |
Cash | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 724 | 1,012 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 6,080 | 13,043 |
Money market funds | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 6,080 | $ 13,043 |
Money market funds | Significant other observable inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0 | |
Money market funds | Significant unobservable inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Cash and cash equivalents, fair value disclosure | $ 0 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||
Net loss | $ (4,188) | $ (5,261) | $ (6,767) | $ (8,290) | $ (9,449) | $ (15,057) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 7,728,624 | 2,687,829 | 7,726,915 | 2,500,619 | ||
Net loss per share, basic and diluted (in dollars per share) | $ (0.54) | $ (2.52) | $ (1.22) | $ (6.02) |
Net Loss per Share - Schedule_2
Net Loss per Share - Schedule of Anti-Dilutive Common Stock Equivalents Excluded from the Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 0 | 0 | 0 | 112,892 |
Stock options to purchase common stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 0 | 0 | 0 | 112,892 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Inventory (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Raw materials | $ 0 | $ 0 | $ 1,835 | |
Work in process | 0 | 0 | 12 | |
Finished goods | 0 | 0 | 89 | |
Total | 0 | 0 | $ 1,936 | |
Impairment of inventory | $ 100 | $ 53 | $ 0 |
Balance Sheet Details - Sched_2
Balance Sheet Details - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 640 | $ 1,890 |
Insurance receivable | 3,150 | 0 |
Manufacturing use assets | 166 | 0 |
Other assets | 15 | 69 |
Total | $ 3,971 | $ 1,959 |
Balance Sheet Details - Sched_3
Balance Sheet Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | $ 3,513 | $ 3,513 | $ 3,407 | ||
Less: accumulated depreciation | (2,458) | (2,458) | (2,326) | ||
Total | 1,055 | 1,055 | 1,081 | ||
Depreciation expense | 100 | $ 100 | 187 | $ 256 | |
Asset impairment and other charges | 1,310 | $ 0 | 1,310 | $ 0 | |
Computer hardware | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | 259 | 259 | 263 | ||
Computer software | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | 274 | 274 | 291 | ||
Leasehold improvements | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | 427 | 427 | 497 | ||
Furniture and fixtures | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | 179 | 179 | 247 | ||
Scientific equipment | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | 1,968 | 1,968 | 1,999 | ||
Construction in progress, or CIP | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | $ 406 | $ 406 | $ 110 |
Balance Sheet Details - Sched_4
Balance Sheet Details - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued legal and professional fees | $ 93 | $ 412 |
Accrued customer incentives | 0 | 198 |
Accrued sales and other taxes | 83 | 107 |
Returns reserve liability | 0 | 315 |
Settlement accrual | 3,150 | 0 |
Other accrued expenses | 277 | 492 |
Total | $ 3,603 | $ 1,524 |
Loan - Additional Information (
Loan - Additional Information (Details) - Unsecured Debt - Paycheck Protection Program (PPP) Loan | Apr. 22, 2020USD ($) |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 400,000 |
Fixed interest rate (as a percent) | 1.00% |
Deferral period of payment (in months) | 6 months |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance | 5,311,662 |
Unrecognized compensation expense | $ | $ 0.6 |
Weighted average compensation cost recognition period | 2 years 6 months |
Weighted-average fair value of options granted (in dollars per share) | $ / shares | $ 1.12 |
2016 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance | 1,012,669 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance | 46,878 |
Restricted Stock Units (RSUs) | 2016 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average compensation cost recognition period | 1 month 6 days |
Vesting percentage of award (as a percent) | 100.00% |
Restricted Stock | 2016 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average compensation cost recognition period | 1 year |
Vesting percentage of award (as a percent) | 100.00% |
Unamortized expense | $ | $ 0.1 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 292 | $ 536 | $ 762 | $ 1,641 |
Cost of revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 0 | (65) | 1 | (26) |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 59 | 191 | 157 | 410 |
Selling, general and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 233 | $ 410 | $ 604 | $ 1,257 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Transactions (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Number of shares | |
Number of shares outstanding, beginning balance (in shares) | shares | 518,468 |
Number of shares, options granted (in shares) | shares | 463,000 |
Number of shares, options exercised (in shares) | shares | 0 |
Number of shares, options canceled (in shares) | shares | (191,450) |
Number of shares outstanding, ending balance (in shares) | shares | 790,018 |
Number of shares, vested and expected to vest (in shares) | shares | 693,494 |
Number of shares, vested and exercisable (in shares) | shares | 284,649 |
Weighted- average exercise price per share | |
Weighted average exercise price outstanding, beginning balance (in dollars per share) | $ / shares | $ 38.64 |
Weighted average exercise price, options granted (in dollars per share) | $ / shares | 0.80 |
Weighted average exercise price, options exercised (in dollars per share) | $ / shares | 0 |
Weighted average exercise price, options canceled (in dollars per share) | $ / shares | 30.03 |
Weighted average exercise price outstanding, ending balance (in dollars per share) | $ / shares | 18.55 |
Weighted average exercise price, vested and expected to vest (in dollars per share) | $ / shares | 20.89 |
Weighted average exercise price, vested and exercisable (in dollars per share) | $ / shares | $ 46.65 |
Weighted- average remaining contractual life (in years) | |
Weighted average contractual life outstanding, ending balance | 8 years 4 months 10 days |
Weighted average contractual life, vested and expected to vest | 8 years 1 month 24 days |
Weighted average contractual life, vested and exercisable | 5 years 9 months 4 days |
Aggregate intrinsic value (in thousands) | |
Aggregate intrinsic value outstanding, ending balance | $ | $ 0 |
Aggregate intrinsic value, vested and expected to vest | $ | 0 |
Aggregate intrinsic value, vested and exercisable | $ | $ 0 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Awards (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Weighted- average grant date fair value | |
Vested and expected to vest, number of shares (in shares) | shares | 46,470 |
Vested and expected to vest, weighted average grant date fair value (in dollars per share) | $ / shares | $ 9.60 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 33 |
Restricted Stock | |
Number of awards | |
Outstanding, beginning balance (in shares) | shares | 29,524 |
Awards granted (in shares) | shares | 0 |
Awards released (in shares) | shares | (26,524) |
Awards canceled (in shares) | shares | 0 |
Outstanding, ending balance (in shares) | shares | 3,000 |
Weighted- average grant date fair value | |
Outstanding balance (in dollars per share) | $ / shares | $ 39.64 |
Awards granted (in dollars per share) | $ / shares | 0 |
Awards released (in dollars per share) | $ / shares | 36.03 |
Awards canceled (in dollars per share) | $ / shares | 0 |
Outstanding balance (in dollars per share) | $ / shares | $ 71.50 |
Restricted Stock Units (RSUs) | |
Number of awards | |
Outstanding, beginning balance (in shares) | shares | 55,574 |
Awards granted (in shares) | shares | 816,081 |
Awards released (in shares) | shares | (8,696) |
Awards canceled (in shares) | shares | (816,081) |
Outstanding, ending balance (in shares) | shares | 46,878 |
Weighted- average grant date fair value | |
Outstanding balance (in dollars per share) | $ / shares | $ 11.70 |
Awards granted (in dollars per share) | $ / shares | 1.88 |
Awards released (in dollars per share) | $ / shares | 23 |
Awards canceled (in dollars per share) | $ / shares | 1.88 |
Outstanding balance (in dollars per share) | $ / shares | $ 9.60 |
Shares outstanding, aggregate intrinsic value | $ | $ 33 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Details) - USD ($) | Feb. 05, 2020 | Aug. 01, 2019 | Dec. 27, 2018 | Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Aug. 06, 2019 |
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||||
Public Stock Offering | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares sold (in shares) | 2,427,500 | ||||||
Proceeds from issuance of common stock and common stock warrants | $ 15,400,000 | ||||||
Fees incurred | $ 700,000 | ||||||
Over-Allotment Option | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares sold (in shares) | 412,500 | ||||||
Pursuant to Partial Exercise | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Number of shares sold (in shares) | 562,500 | ||||||
Pre Funded Warrants | Public Stock Offering | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Sale of stock, price per share (in dollars per share) | $ 3.999 | ||||||
Pre Funded Warrants | Maximum | Public Stock Offering | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Shares of common stock to be purchased (in shares) | 1,735,000 | ||||||
Firm Warrants | Public Stock Offering | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Sale of stock, price per share (in dollars per share) | 4 | ||||||
Exercise price (in dollars per share) | 4.40 | ||||||
Firm Warrants | Maximum | Public Stock Offering | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Shares of common stock to be purchased (in shares) | 3,234,375 | ||||||
Firm Warrants | Maximum | Over-Allotment Option | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Shares of common stock to be purchased (in shares) | 421,875 | ||||||
Representative Warrants | Public Stock Offering | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Shares of common stock to be purchased (in shares) | 37,500 | ||||||
Exercise price (in dollars per share) | $ 5 | ||||||
Lincoln Park Capital Fund, LLC | Registration Rights Agreement | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Fees incurred | $ 300,000 | $ 300,000 | |||||
Maximum purchase commitment | $ 15,000,000 | $ 20,000,000 | $ 15,000,000 | ||||
Sale of stock, selling period | 36 months |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Common Stock Reserved for Future Issuance (Details) | Jun. 30, 2020shares |
Class of Stock [Line Items] | |
Total common stock (in shares) | 5,311,662 |
Authorized for future option and ongoing vesting of award grants | |
Class of Stock [Line Items] | |
Total common stock (in shares) | 1,012,669 |
Authorized for future issuance under ESPP | |
Class of Stock [Line Items] | |
Total common stock (in shares) | 190,222 |
Stock options issued and outstanding | |
Class of Stock [Line Items] | |
Total common stock (in shares) | 790,018 |
Restricted Stock Units (RSUs) | |
Class of Stock [Line Items] | |
Total common stock (in shares) | 46,878 |
Warrant | |
Class of Stock [Line Items] | |
Total common stock (in shares) | 3,271,875 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 16, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jan. 01, 2019 |
Loss Contingencies [Line Items] | |||||||
Right-of-use asset impairment | $ 400 | ||||||
Operating lease, discount rate (as a percent) | 6.00% | 6.00% | 7.00% | ||||
Rent expense | $ 100 | $ 100 | $ 300 | $ 200 | |||
Payments for operating lease agreement | 100 | 200 | |||||
Settlement accrual | 3,150 | 3,150 | $ 0 | ||||
Insurance receivable | $ 3,150 | $ 3,150 | $ 0 | ||||
Settled Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation settlement, payment to plaintiffs | $ 3,150 | ||||||
Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Remaining lease term (in years) | 1 year 8 months 12 days | ||||||
Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Remaining lease term (in years) | 4 years 9 months 18 days |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Noncancelable Minimum Payment Obligations Under Operating Lease (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2020 | $ 269 | |
2021 | 564 | |
2022 | 219 | |
2023 | 105 | |
2024 | 108 | |
2025 | 37 | |
Total undiscounted lease payments | 1,302 | |
Finance leases: | ||
Remainder of 2020 | 12 | |
2021 | 24 | |
Total undiscounted lease payments - finance leases | 36 | |
Total undiscounted lease payments | 1,338 | |
Less: imputed interest | (93) | |
Lease liability | 1,245 | |
Less: current portion of lease liability | (579) | $ (561) |
Lease liability, less current portion | $ 666 | $ 567 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Deferred revenue | $ 123 | $ 424 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Deferred revenue | $ 300 |