Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37941 | |
Entity Registrant Name | SENESTECH, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-2079805 | |
Entity Address, Address Line One | 23460 N 19th Ave, | |
Entity Address, Address Line Two | Suite 110 | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85027 | |
City Area Code | (928) | |
Local Phone Number | 779-4143 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | SNES | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 2,964,485 | |
Entity Central Index Key | 0001680378 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,196 | $ 4,775 |
Accounts receivable, net | 44 | 113 |
Prepaid expenses | 330 | 378 |
Inventory, net | 765 | 853 |
Total current assets | 3,335 | 6,119 |
Right to use assets, operating leases | 261 | 347 |
Property and equipment, net | 245 | 294 |
Other noncurrent assets | 22 | 22 |
Total assets | 3,863 | 6,782 |
Current liabilities: | ||
Accounts payable | 120 | 540 |
Accrued expenses | 621 | 560 |
Current portion of operating lease liability | 188 | 180 |
Deferred revenue | 24 | 44 |
Total current liabilities | 953 | 1,324 |
Operating lease liability, less current portion | 83 | 179 |
Total liabilities | 1,036 | 1,503 |
Commitments and contingencies (see notes) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 100,000,000 shares authorized, 2,964,485 and 809,648 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 3 | 1 |
Additional paid-in capital | 129,057 | 127,481 |
Accumulated deficit | (126,233) | (122,203) |
Total stockholders’ equity | 2,827 | 5,279 |
Total liabilities and stockholders’ equity | $ 3,863 | $ 6,782 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
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) | 2,964,485 | 809,648 |
Common stock, shares outstanding (in shares) | 2,964,485 | 809,648 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues, net | $ 305 | $ 277 | $ 538 | $ 472 |
Cost of sales | 163 | 141 | 304 | 246 |
Gross profit | 142 | 136 | 234 | 226 |
Operating expenses: | ||||
Research and development | 381 | 431 | 768 | 947 |
Selling, general and administrative | 1,761 | 2,277 | 3,511 | 4,184 |
Total operating expenses | 2,142 | 2,708 | 4,279 | 5,131 |
Loss from operations | (2,000) | (2,572) | (4,045) | (4,905) |
Other income (expense): | ||||
Interest income | 7 | 1 | 15 | 3 |
Interest expense | 0 | 0 | 0 | (1) |
Miscellaneous income | 0 | 2 | 0 | 2 |
Other income, net | 7 | 3 | 15 | 4 |
Net loss | (1,993) | (2,569) | (4,030) | (4,901) |
Comprehensive loss | $ (1,993) | $ (2,569) | $ (4,030) | $ (4,901) |
Weighted average shares outstanding - basic (in shares) | 2,860,874 | 610,635 | 2,208,162 | 610,543 |
Weighted average shares outstanding - diluted (in shares) | 2,860,874 | 610,635 | 2,208,162 | 610,543 |
Net loss per share - basic (in dollars per share) | $ (0.70) | $ (4.21) | $ (1.83) | $ (8.03) |
Net loss per share - diluted (in dollars per share) | $ (0.70) | $ (4.21) | $ (1.83) | $ (8.03) |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (4,030) | $ (4,901) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 69 | 113 |
Stock-based compensation | 336 | 430 |
Bad debt expense | (2) | 12 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 71 | (19) |
Other assets | (2) | 0 |
Prepaid expenses | 92 | (108) |
Inventory | 88 | 25 |
Accounts payable | (420) | (47) |
Accrued expenses | 61 | 306 |
Deferred revenue | (20) | 41 |
Net cash used in operating activities | (3,757) | (4,148) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (21) | (146) |
Net cash used in investing activities | (21) | (146) |
Cash flows from financing activities: | ||
Proceeds from the issuance of common stock, net | 1,210 | 0 |
Repayments of notes payable | 0 | (5) |
Repayments of finance lease obligations | 0 | (27) |
Payment of employee withholding taxes related to share based awards | (11) | 0 |
Net cash provided by (used in) financing activities | 1,199 | (32) |
Decrease in cash and cash equivalents | (2,579) | (4,326) |
Cash and cash equivalents, beginning of period | 4,775 | 9,326 |
Cash and cash equivalents, end of period | 2,196 | 5,000 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 0 | 1 |
Income taxes paid | $ 0 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Nature of Business SenesTech, Inc. (subsequently referred to in this report as “we,” “us,” “our,” or “our Company”) was incorporated in the state of Nevada in July 2004. On November 12, 2015, we subsequently reincorporated in the state of Delaware. Our corporate headquarters and manufacturing site are in Phoenix, Arizona. We have developed and are commercializing a global, proprietary technology for managing animal pest populations, initially rat populations, through fertility control with our product known as ContraPest ® . ContraPest is a liquid bait containing the active ingredients 4-vinylcyclohexene diepoxide and triptolide. ContraPest limits reproduction of male and female rats beginning with the first breeding cycle following consumption. ContraPest is being marketed for use in controlling Norway and roof rat populations. In addition to the U.S. Environmental Protection Agency registration of ContraPest, we must obtain registration from the various state regulatory agencies prior to selling in each state. To date, we have received registration for ContraPest in all 50 states and the District of Columbia, 49 of which have approved the removal of the Restricted Use designation, as well as the District of Columbia and five major U.S. territories. Going Concern Our condensed financial statements as of June 30, 2023 were prepared under the assumption that we would continue as a going concern. The reports of our independent registered public accounting firm that accompanies our financial statements for each of the years ended December 31, 2022 and December 31, 2021 contain a going concern qualification in which such firm expressed substantial doubt about our ability to continue as a going concern, based on the financial statements at that time. Specifically, we have incurred operating losses since our inception, and we expect to continue to incur significant expenses and operating losses for the foreseeable future. These prior losses and expected future losses have had, and will continue to have, an adverse effect on our financial condition. If we encounter continued issues or delays in the commercialization of ContraPest, our expected future losses could have an adverse effect on our financial condition and negatively impact our ability to fund continued operations, obtain additional financing in the future and continue as a going concern. There are no assurances that such financing, if necessary, will be available to us at all or will be available in sufficient amounts or on reasonable terms. Our financial statements do not include any adjustments that may result from the outcome of this uncertainty. If we are unable to generate additional funds in the future through additional financings, sales of our products, licensing fees, royalty payments or from other sources or transactions, we will exhaust our resources and will be unable to continue operations. Liquidity and Capital Resources Since our inception, we have sustained significant operating losses in the course of our research and development and commercialization activities and expect such losses to continue for the near future. We have generated limited revenue to date from product sales, research grants and licensing fees received under a former license agreement. We have primarily funded our operations to date through the sale of equity securities, including convertible preferred stock, common stock and warrants to purchase common stock. We have also raised capital through debt financing, consisting primarily of convertible notes and government loan programs, and, to a lesser extent, payments received in connection with product sales, research grants and licensing fees. As of June 30, 2023, we had an accumulated deficit of $126.2 million and cash and cash equivalents of $2.2 million. Our ultimate success depends upon the outcome of a combination of factors, including the following: (i) successful commercialization of ContraPest and maintaining and obtaining regulatory approval of our products and product candidates; (ii) market acceptance, commercial viability and profitability of ContraPest and other products; (iii) the ability to market our products and establish an effective sales force and marketing infrastructure to generate significant revenue; (iv) the success of our research and development; (v) the ability to retain and attract key personnel to develop, operate and grow our business; and (vi) our ability to meet our working capital needs. Based upon our current operating plan, we expect that cash and cash equivalents at June 30, 2023, in combination with anticipated revenue and any additional sales of our equity securities (see Note 10), will be sufficient to fund our current operations for at least the next three months. While we have evaluated and continue to evaluate our operating expenses and concentrate our resources toward the successful commercialization of ContraPest in the United States, additional financing will be needed before achieving anticipated revenue targets and margin targets. If we are unable to raise necessary capital through the sale of our securities, we may be required to take other measures that could impair our ability to be successful and operate as a going concern. In any event, additional capital is needed in order to fund our operating losses and research and development activities before we become profitable. We may never achieve profitability or generate positive cash flows, and unless and until we do, we will continue to need to raise capital through equity or debt financing. If such equity or debt financing is not available at adequate levels or on acceptable terms, we may need to delay, limit or terminate commercialization and development efforts or discontinue operations. Condensed Financial Statements Our accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with the U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the unaudited condensed financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of June 30, 2023, and our operating results and cash flows for the three- and six-month periods ended June 30, 2023 and 2022. The accompanying financial information as of December 31, 2022 is derived from audited financial statements. Interim results are not necessarily indicative of results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 17, 2023. Recent Accounting Pronouncements There have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our condensed financial statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The significant estimates in our financial statements include the valuation of inventory, common stock warrants, and stock-based awards, such as stock options and restricted stock units. Actual results could differ from such estimates. Comprehensive Loss We have no other comprehensive income items for the periods presented. As a result, our net loss and comprehensive loss were the same for the periods presented and a separate statement of comprehensive loss is not included in the accompanying condensed financial statements. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Cash and Cash Equivalents Highly liquid investments with maturities of three months or less as of the date of acquisition are classified as cash equivalents, of which we had $2.2 million and $4.8 million as of June 30, 2023 and December 31, 2022, respectively, included within cash and cash equivalents in the condensed balance sheets. Accounts Receivable, Net Accounts receivable, net consisted of the following (in thousands): June 30, December 31, Accounts receivable $ 48 $ 119 Allowance for uncollectible accounts (4) (6) Accounts receivable, net $ 44 $ 113 The following was the activity in the allowance for uncollectible accounts (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance as of beginning of period $ 4 $ — $ 6 $ — Increase in provision — 12 — 12 Amounts written off, less recoveries — — (2) — Balance as of end of period $ 4 $ 12 $ 4 $ 12 Inventory, net Inventory, net consisted of the following (in thousands): June 30, December 31, Raw materials $ 729 $ 772 Finished goods 54 99 Total inventory 783 871 Less: reserve for obsolescence (18) (18) Inventory, net $ 765 $ 853 The following was the activity in the reserve for obsolescence (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance as of beginning of period $ 18 $ 26 $ 18 $ 29 Increase in reserve — — — — Amounts relieved — (4) — (7) Balance as of end of period $ 18 $ 22 $ 18 $ 22 Prepaid Expenses Prepaid expenses consisted of the following (in thousands): June 30, December 31, Professional services $ 107 $ 41 Insurance 97 61 Software licenses 94 157 Other 14 6 Patents 10 39 Marketing programs and conferences 8 74 Total prepaid expenses $ 330 $ 378 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): June 30, December 31, Research and development equipment $ 1,569 $ 1,558 Office and computer equipment 803 800 Autos 54 54 Furniture and fixtures 41 41 Leasehold improvements 119 119 Total in service 2,586 2,572 Accumulated depreciation and amortization (2,353) (2,283) Total in service, net 233 289 Construction in progress 12 5 Property and equipment, net $ 245 $ 294 Accrued Expenses Accrued expenses consisted of the following (in thousands): June 30, December 31, Compensation, severance and related benefits $ 468 $ 497 Legal services 138 36 Product warranty 15 18 Personal property and franchise tax — 6 Other — 3 Total accrued expenses $ 621 $ 560 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTSThe carrying amounts of our financial instruments, including accounts payable and accrued liabilities, approximate fair value due to their short maturities. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES We have operating leases for our corporate headquarters and our manufacturing and research facility, which expire in 2024. We were obligated under finance leases for certain research and computer equipment, of which the last arrangement expired in June 2022. The components of lease cost were as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 55 $ 56 $ 111 $ 112 Finance lease cost: Amortization of right-of-use asset $ — $ 11 $ — $ 27 Interest on lease liability — — — 1 Total finance lease cost $ — $ 11 $ — $ 28 As of June 30, 2023, maturities of operating lease liabilities were follows (in thousands): 2023 $ 99 2024 186 Total operating lease payments 285 Less imputed interest (14) Total operating lease liabilities $ 271 |
LEASES | LEASES We have operating leases for our corporate headquarters and our manufacturing and research facility, which expire in 2024. We were obligated under finance leases for certain research and computer equipment, of which the last arrangement expired in June 2022. The components of lease cost were as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 55 $ 56 $ 111 $ 112 Finance lease cost: Amortization of right-of-use asset $ — $ 11 $ — $ 27 Interest on lease liability — — — 1 Total finance lease cost $ — $ 11 $ — $ 28 As of June 30, 2023, maturities of operating lease liabilities were follows (in thousands): 2023 $ 99 2024 186 Total operating lease payments 285 Less imputed interest (14) Total operating lease liabilities $ 271 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION In 2018, our stockholders approved the adoption of the SenesTech, Inc. 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan has since been amended and restated on certain occasions, most recently on June 26, 2023, when our stockholders approved an increase to the total number of authorized shares to 848,614 shares. Stock options are generally issued with a per share exercise price equal to the fair market value of our common stock at the date of grant. Options granted generally vest immediately, or ratably over a 12- to 36-month period coinciding with their respective service periods, with terms generally of five years. Certain stock option awards provide for accelerated vesting upon a change in control. As of June 30, 2023, we had 465,580 shares of common stock available for issuance under the 2018 Plan. Stock Options The following table presents the outstanding stock option activity: Number of Options Weighted Weighted Three months ended June 30, 2023: Outstanding as of March 31, 2023 280,448 $ 17.11 4.4 Granted 199,421 1.25 5.0 Exercised — — — Forfeited (107) 39.64 — Expired (336) 118.25 — Outstanding as of June 30, 2023 479,426 (1) 10.01 4.5 Six months ended June 30, 2023: Outstanding as of December 31, 2022 280,810 17.00 3.9 Granted 199,421 1.25 5.0 Exercised — — — Forfeited (433) 119.46 — Expired (372) 680.87 — Outstanding as of June 30, 2023 479,426 (1) 10.01 4.5 Exercisable as of June 30, 2023 139,583 29.16 3.8 (1) Includes options related to 99,000 shares that are inducement awards and not granted under the 2018 Plan. The weighted average grant date fair value of options granted during the six months ended June 30, 2023 was $1.24 per share, based on the following assumptions used in the Black-Scholes option pricing model: Expected volatility 128 % Expected dividend yield — Expected term (in years) 5 Risk-free interest rate 5.3 % The expected volatility assumption is based on the calculated volatility of our common stock at the date of grant based on historical prices over the most recent period commensurate with the term of the award. The expected dividend yield assumption is based on our history and expected dividend payouts: we have not, and do not expect to, pay dividends. The expected term assumption is the contractual term of the options for non-employees. The risk-free interest rate assumption is determined using the U.S. treasury yields for bonds with a maturity commensurate with the term of the award. Restricted Stock Units The following table presents the unvested restricted stock unit activity: Number of Weighted Unvested balance as of December 31, 2022 18,799 $ 2.71 Granted — — Vested (18,799) 2.71 Forfeited — — Unvested balance as of June 30, 2023 — — The stock-based compensation expense was recorded as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Research and development $ 5 $ 3 $ 9 $ 4 Selling, general and administrative (1) 165 203 327 426 Total stock-based compensation expense $ 170 $ 206 $ 336 $ 430 (1) For the three and six month periods ended June 30, 2023, includes $56,000 related to stock issued in exchange for marketing services. The allocation between research and development and selling, general and administrative expense was based on the department and services performed by the employee or non-employee. At June 30, 2023, the total compensation cost related to unvested options not yet recognized was $469,000, which will be recognized over a weighted average period of 1.6 years, assuming the employees and non-employees complete their service period required for vesting. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Activity in equity during the six month periods ended June 30, 2023 and 2022 was as follows (dollars in thousands): Common Stock Additional Accumulated Total Shares Amount 2023 Balances as of December 31, 2022 809,648 $ 1 $ 127,481 $ (122,203) $ 5,279 Stock-based compensation — — 166 — 166 Issuance of common stock upon exercise of warrants 1,230,000 1 (1) — — Issuance of common stock for service 54,466 — 100 — 100 Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes 13,225 — (11) — (11) Net loss — — — (2,037) (2,037) Balances as of March 31, 2023 2,107,339 2 127,735 (124,240) 3,497 Stock-based compensation — — 113 — 113 Issuance of common stock, net of issuance costs 857,146 1 1,209 — 1,210 Net loss — — — (1,993) (1,993) Balances as of June 30, 2023 2,964,485 $ 3 $ 129,057 $ (126,233) $ 2,827 2022 Balances as of December 31, 2021 610,364 $ 1 $ 122,542 $ (112,508) $ 10,035 Stock-based compensation — — 221 — 221 Issuance of common stock for service 250 — 3 — 3 Net loss — — — (2,332) (2,332) Balances as of March 31, 2022 610,614 1 122,766 (114,840) 7,927 Stock-based compensation — — 205 — 205 Issuance of common stock for service 34 — 1 — 1 Net loss — — — (2,569) (2,569) Balances as of June 30, 2022 610,648 $ 1 $ 122,972 $ (117,409) $ 5,564 During the six months ended June 30, 2023, the following shares of common stock were issued: • 857,146 shares pursuant to a registered direct offering with certain institutional investors for $1.75 per share for gross proceeds of $1.5 million, before deducting issuance costs of $290,000. The shares were offered and sold pursuant to a prospectus, dated May 6, 2022, and a prospectus supplement, dated April 10, 2023, in connection with a takedown from our shelf registration statement on Form S-3 (File No. 333-261227). • 1,230,000 shares pursuant to the exercise of previously outstanding prefunded warrants, which were issued in November 2022 with an exercise price of $3.50 per share; • 54,466 restricted shares in exchange for marketing services to be performed through September 2023, with the total value of services to be recognized based on the stock price on the date of issuance; and • 13,225 shares pursuant to the vesting of restricted stock units. The following table presents the common stock warrant activity: Shares Weighted Weighted Outstanding as of December 31, 2022 4,414,810 $ 6.58 3.0 Issued 921,432 1.66 5.3 Exercised (1,230,000) 3.50 — Expired (2,835) 728.00 — Outstanding as of June 30, 2023 4,103,407 5.91 3.2 During the six months ended June 30, 2023: • Series C warrants were issued to the investors in the offering discussed in Note 6 to purchase up to 857,146 shares of our common stock. The Series C warrants are exercisable immediately with an exercise price of $1.62 per share and expire October 12, 2028. We estimated the fair value of these warrants to be $1.1 million using a Black-Scholes model based on the following significant inputs: common stock price of $1.38 per share; volatility of 164%; term of 5.5 years; dividend yield of —%; and risk-free interest rate of 3.4%; • Placement agent warrants were issued to purchase up to 64,286 shares of our common stock. The placement agent warrants are exercisable immediately upon issuance, with an exercise price per share of $2.1875 per share, and expire April 10, 2028. We estimated the fair value of these warrants to be $82,000 using a Black-Scholes model based on the following significant inputs: common stock price of $1.38 per share; volatility of 165%; term of 5 years; dividend yield of —%;and risk-free interest rate of 3.5%; and • Prefunded warrants representing 1,230,000 shares of common stock were exercised. Such prefunded warrants were issued in November 2022 with an exercise price of $3.50 per share. |
COMMON STOCK WARRANTS
COMMON STOCK WARRANTS | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
COMMON STOCK WARRANTS | STOCKHOLDERS’ EQUITY Activity in equity during the six month periods ended June 30, 2023 and 2022 was as follows (dollars in thousands): Common Stock Additional Accumulated Total Shares Amount 2023 Balances as of December 31, 2022 809,648 $ 1 $ 127,481 $ (122,203) $ 5,279 Stock-based compensation — — 166 — 166 Issuance of common stock upon exercise of warrants 1,230,000 1 (1) — — Issuance of common stock for service 54,466 — 100 — 100 Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes 13,225 — (11) — (11) Net loss — — — (2,037) (2,037) Balances as of March 31, 2023 2,107,339 2 127,735 (124,240) 3,497 Stock-based compensation — — 113 — 113 Issuance of common stock, net of issuance costs 857,146 1 1,209 — 1,210 Net loss — — — (1,993) (1,993) Balances as of June 30, 2023 2,964,485 $ 3 $ 129,057 $ (126,233) $ 2,827 2022 Balances as of December 31, 2021 610,364 $ 1 $ 122,542 $ (112,508) $ 10,035 Stock-based compensation — — 221 — 221 Issuance of common stock for service 250 — 3 — 3 Net loss — — — (2,332) (2,332) Balances as of March 31, 2022 610,614 1 122,766 (114,840) 7,927 Stock-based compensation — — 205 — 205 Issuance of common stock for service 34 — 1 — 1 Net loss — — — (2,569) (2,569) Balances as of June 30, 2022 610,648 $ 1 $ 122,972 $ (117,409) $ 5,564 During the six months ended June 30, 2023, the following shares of common stock were issued: • 857,146 shares pursuant to a registered direct offering with certain institutional investors for $1.75 per share for gross proceeds of $1.5 million, before deducting issuance costs of $290,000. The shares were offered and sold pursuant to a prospectus, dated May 6, 2022, and a prospectus supplement, dated April 10, 2023, in connection with a takedown from our shelf registration statement on Form S-3 (File No. 333-261227). • 1,230,000 shares pursuant to the exercise of previously outstanding prefunded warrants, which were issued in November 2022 with an exercise price of $3.50 per share; • 54,466 restricted shares in exchange for marketing services to be performed through September 2023, with the total value of services to be recognized based on the stock price on the date of issuance; and • 13,225 shares pursuant to the vesting of restricted stock units. The following table presents the common stock warrant activity: Shares Weighted Weighted Outstanding as of December 31, 2022 4,414,810 $ 6.58 3.0 Issued 921,432 1.66 5.3 Exercised (1,230,000) 3.50 — Expired (2,835) 728.00 — Outstanding as of June 30, 2023 4,103,407 5.91 3.2 During the six months ended June 30, 2023: • Series C warrants were issued to the investors in the offering discussed in Note 6 to purchase up to 857,146 shares of our common stock. The Series C warrants are exercisable immediately with an exercise price of $1.62 per share and expire October 12, 2028. We estimated the fair value of these warrants to be $1.1 million using a Black-Scholes model based on the following significant inputs: common stock price of $1.38 per share; volatility of 164%; term of 5.5 years; dividend yield of —%; and risk-free interest rate of 3.4%; • Placement agent warrants were issued to purchase up to 64,286 shares of our common stock. The placement agent warrants are exercisable immediately upon issuance, with an exercise price per share of $2.1875 per share, and expire April 10, 2028. We estimated the fair value of these warrants to be $82,000 using a Black-Scholes model based on the following significant inputs: common stock price of $1.38 per share; volatility of 165%; term of 5 years; dividend yield of —%;and risk-free interest rate of 3.5%; and • Prefunded warrants representing 1,230,000 shares of common stock were exercised. Such prefunded warrants were issued in November 2022 with an exercise price of $3.50 per share. |
LOSS PER SHARE
LOSS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | LOSS PER SHARE Basic loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares and potentially dilutive securities outstanding during the period determined using the treasury stock method. Stock options, warrants and restricted stock units are considered to be potentially dilutive securities but have been excluded from the calculation of diluted loss per share because their effect would be anti-dilutive given the net losses reported for all periods presented. Therefore, basic and diluted loss per share are the same for each period presented. The following shares were excluded from the calculation of diluted net loss per share: Three Months Ended Six Months Ended 2023 2022 2023 2022 Common stock warrants — — 166,661 — Stock options 10,171 — 75,466 — Restricted stock units — — — — 10,171 — 242,127 — |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Legal Proceedings In July 2020, our former corporate general counsel (the “Plaintiff”) commenced an action against us in the Superior Court of the State of California, for the County of San Diego. The complaint alleges, among other things, that we breached the Plaintiff’s employment contract with us, as well as the implied covenant of good faith and fair dealing, by refusing to issue him the balance of stock options he claims we owe him. In September 2021, the Plaintiff served us and also named 10 individuals as defendants, consisting of current and former directors and employees. We do not believe that all of the defendants have yet been served. Furthermore, two individually named defendants have separately settled with the Plaintiff. The Plaintiff alleges that such individuals agreed to knowingly and wrongfully withhold the stock options owed to him and are knowingly in receipt of stolen property. The Plaintiff seeks compensatory damages in excess of $500,000, treble damages, and reasonable attorneys’ fees. We do not believe the claims described above have merit and intend to aggressively defend against these accusations. The Plaintiff has agreed to mediation to resolve the issues. We do not believe that this litigation is likely to have a material effect on our operations. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 21, 2023, subject to stockholder approval, our board of directors approved an amendment to our amended and restated certificate of incorporation, as amended, to effect a reverse stock split (the “Reverse Stock Split”) of our issued and outstanding common stock by a ratio of not less than 1-for-2 and not more than 1-for-12. The exact ratio of the Reverse Stock Split will be set within this range as determined by our board of directors in its sole discretion prior to the time of the Reverse Stock Split and will be publicly announced by us prior to the effective time. A special meeting of stockholders is scheduled for August 18, 2023 to vote on such matter, among other items. On July 21, 2023, our board of directors approved a public offering of shares of our common stock, together with Series D and Series E warrants to purchase shares of our common stock for aggregate gross proceeds of up to $7.5 million. See Form S-1 filed with the SEC on July 21, 2023 (File No. 333-273370). We have evaluated subsequent events from the balance sheet date through August 10, 2023, the date at which the condensed financial statements were issued, and determined that there were no additional items that require adjustment to or disclosure in the condensed financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net loss | $ (1,993) | $ (2,037) | $ (2,569) | $ (2,332) | $ (4,030) | $ (4,901) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Financial Statements | Condensed Financial StatementsOur accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with the U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the unaudited condensed financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly our financial position as of June 30, 2023, and our operating results and cash flows for the three- and six-month periods ended June 30, 2023 and 2022. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no new accounting pronouncements not yet effective or adopted in the current year that we believe have a significant impact, or potential significant impact, to our condensed financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The significant estimates in our financial statements include the valuation of inventory, common stock warrants, and stock-based awards, such as stock options and restricted stock units. Actual results could differ from such estimates. |
Comprehensive Loss | Comprehensive Loss We have no other comprehensive income items for the periods presented. As a result, our net loss and comprehensive loss were the same for the periods presented and a separate statement of comprehensive loss is not included in the accompanying condensed financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments with maturities of three months or less as of the date of acquisition are classified as cash equivalents, of which we had $2.2 million and $4.8 million as of June 30, 2023 and December 31, 2022, respectively, included within cash and cash equivalents in the condensed balance sheets. |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of accounts receivable, net and activity in allowance for uncollectible accounts | Accounts receivable, net consisted of the following (in thousands): June 30, December 31, Accounts receivable $ 48 $ 119 Allowance for uncollectible accounts (4) (6) Accounts receivable, net $ 44 $ 113 The following was the activity in the allowance for uncollectible accounts (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance as of beginning of period $ 4 $ — $ 6 $ — Increase in provision — 12 — 12 Amounts written off, less recoveries — — (2) — Balance as of end of period $ 4 $ 12 $ 4 $ 12 |
Schedule of inventory, net and activity in reserve for obsolescence | Inventory, net consisted of the following (in thousands): June 30, December 31, Raw materials $ 729 $ 772 Finished goods 54 99 Total inventory 783 871 Less: reserve for obsolescence (18) (18) Inventory, net $ 765 $ 853 The following was the activity in the reserve for obsolescence (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance as of beginning of period $ 18 $ 26 $ 18 $ 29 Increase in reserve — — — — Amounts relieved — (4) — (7) Balance as of end of period $ 18 $ 22 $ 18 $ 22 |
Schedule of prepaid expenses | Prepaid expenses consisted of the following (in thousands): June 30, December 31, Professional services $ 107 $ 41 Insurance 97 61 Software licenses 94 157 Other 14 6 Patents 10 39 Marketing programs and conferences 8 74 Total prepaid expenses $ 330 $ 378 |
Schedule of property and equipment, net | Property and equipment, net consisted of the following (in thousands): June 30, December 31, Research and development equipment $ 1,569 $ 1,558 Office and computer equipment 803 800 Autos 54 54 Furniture and fixtures 41 41 Leasehold improvements 119 119 Total in service 2,586 2,572 Accumulated depreciation and amortization (2,353) (2,283) Total in service, net 233 289 Construction in progress 12 5 Property and equipment, net $ 245 $ 294 |
Schedule of accrued expenses | Accrued expenses consisted of the following (in thousands): June 30, December 31, Compensation, severance and related benefits $ 468 $ 497 Legal services 138 36 Product warranty 15 18 Personal property and franchise tax — 6 Other — 3 Total accrued expenses $ 621 $ 560 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of components of lease cost | The components of lease cost were as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 55 $ 56 $ 111 $ 112 Finance lease cost: Amortization of right-of-use asset $ — $ 11 $ — $ 27 Interest on lease liability — — — 1 Total finance lease cost $ — $ 11 $ — $ 28 |
Schedule of future minimum operating lease payments | As of June 30, 2023, maturities of operating lease liabilities were follows (in thousands): 2023 $ 99 2024 186 Total operating lease payments 285 Less imputed interest (14) Total operating lease liabilities $ 271 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock option activity | The following table presents the outstanding stock option activity: Number of Options Weighted Weighted Three months ended June 30, 2023: Outstanding as of March 31, 2023 280,448 $ 17.11 4.4 Granted 199,421 1.25 5.0 Exercised — — — Forfeited (107) 39.64 — Expired (336) 118.25 — Outstanding as of June 30, 2023 479,426 (1) 10.01 4.5 Six months ended June 30, 2023: Outstanding as of December 31, 2022 280,810 17.00 3.9 Granted 199,421 1.25 5.0 Exercised — — — Forfeited (433) 119.46 — Expired (372) 680.87 — Outstanding as of June 30, 2023 479,426 (1) 10.01 4.5 Exercisable as of June 30, 2023 139,583 29.16 3.8 (1) Includes options related to 99,000 shares that are inducement awards and not granted under the 2018 Plan. |
Schedule of fair value of options granted, assumptions | The weighted average grant date fair value of options granted during the six months ended June 30, 2023 was $1.24 per share, based on the following assumptions used in the Black-Scholes option pricing model: Expected volatility 128 % Expected dividend yield — Expected term (in years) 5 Risk-free interest rate 5.3 % |
Schedule of restricted stock unit activity | The following table presents the unvested restricted stock unit activity: Number of Weighted Unvested balance as of December 31, 2022 18,799 $ 2.71 Granted — — Vested (18,799) 2.71 Forfeited — — Unvested balance as of June 30, 2023 — — |
Schedule of stock-based compensation expense | The stock-based compensation expense was recorded as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Research and development $ 5 $ 3 $ 9 $ 4 Selling, general and administrative (1) 165 203 327 426 Total stock-based compensation expense $ 170 $ 206 $ 336 $ 430 (1) For the three and six month periods ended June 30, 2023, includes $56,000 related to stock issued in exchange for marketing services. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of stockholders' equity activity | Activity in equity during the six month periods ended June 30, 2023 and 2022 was as follows (dollars in thousands): Common Stock Additional Accumulated Total Shares Amount 2023 Balances as of December 31, 2022 809,648 $ 1 $ 127,481 $ (122,203) $ 5,279 Stock-based compensation — — 166 — 166 Issuance of common stock upon exercise of warrants 1,230,000 1 (1) — — Issuance of common stock for service 54,466 — 100 — 100 Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes 13,225 — (11) — (11) Net loss — — — (2,037) (2,037) Balances as of March 31, 2023 2,107,339 2 127,735 (124,240) 3,497 Stock-based compensation — — 113 — 113 Issuance of common stock, net of issuance costs 857,146 1 1,209 — 1,210 Net loss — — — (1,993) (1,993) Balances as of June 30, 2023 2,964,485 $ 3 $ 129,057 $ (126,233) $ 2,827 2022 Balances as of December 31, 2021 610,364 $ 1 $ 122,542 $ (112,508) $ 10,035 Stock-based compensation — — 221 — 221 Issuance of common stock for service 250 — 3 — 3 Net loss — — — (2,332) (2,332) Balances as of March 31, 2022 610,614 1 122,766 (114,840) 7,927 Stock-based compensation — — 205 — 205 Issuance of common stock for service 34 — 1 — 1 Net loss — — — (2,569) (2,569) Balances as of June 30, 2022 610,648 $ 1 $ 122,972 $ (117,409) $ 5,564 |
COMMON STOCK WARRANTS (Tables)
COMMON STOCK WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of common stock warrant activity | The following table presents the common stock warrant activity: Shares Weighted Weighted Outstanding as of December 31, 2022 4,414,810 $ 6.58 3.0 Issued 921,432 1.66 5.3 Exercised (1,230,000) 3.50 — Expired (2,835) 728.00 — Outstanding as of June 30, 2023 4,103,407 5.91 3.2 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of outstanding potentially dilutive securities | The following shares were excluded from the calculation of diluted net loss per share: Three Months Ended Six Months Ended 2023 2022 2023 2022 Common stock warrants — — 166,661 — Stock options 10,171 — 75,466 — Restricted stock units — — — — 10,171 — 242,127 — |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Thousands | Jun. 30, 2023 USD ($) state territory | Dec. 31, 2022 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of states registration received | state | 50 | |
Number of states approved removal of RUP designation | state | 49 | |
Number of major U.S. territories registration received | territory | 5 | |
Accumulated deficit | $ | $ 126,233 | $ 122,203 |
Cash and cash equivalents | $ | $ 2,196 | $ 4,775 |
BALANCE SHEET COMPONENTS - Narr
BALANCE SHEET COMPONENTS - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash and cash equivalents | $ 2,196 | $ 4,775 |
BALANCE SHEET COMPONENTS - Sche
BALANCE SHEET COMPONENTS - Schedule of accounts receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Accounts receivable | $ 48 | $ 119 | ||||
Allowance for uncollectible accounts | (4) | $ (4) | (6) | $ (12) | $ 0 | $ 0 |
Accounts receivable, net | $ 44 | $ 113 |
BALANCE SHEET COMPONENTS - Sc_2
BALANCE SHEET COMPONENTS - Schedule of allowance for uncollectible accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of beginning of period | $ 4 | $ 0 | $ 6 | $ 0 |
Increase in provision | 0 | 12 | 0 | 12 |
Amounts written off, less recoveries | 0 | 0 | (2) | 0 |
Balance as of end of period | $ 4 | $ 12 | $ 4 | $ 12 |
BALANCE SHEET COMPONENTS - Sc_3
BALANCE SHEET COMPONENTS - Schedule of inventory, net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Raw materials | $ 729 | $ 772 | ||||
Finished goods | 54 | 99 | ||||
Total inventory | 783 | 871 | ||||
Less: reserve for obsolescence | (18) | $ (18) | (18) | $ (22) | $ (26) | $ (29) |
Inventory, net | $ 765 | $ 853 |
BALANCE SHEET COMPONENTS - Sc_4
BALANCE SHEET COMPONENTS - Schedule of activity in reserve for obsolescence (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Inventory, Valuation Reserves [Roll Forward] | ||||
Balance as of beginning of period | $ 18 | $ 26 | $ 18 | $ 29 |
Increase in reserve | 0 | 0 | 0 | 0 |
Amounts relieved | 0 | (4) | 0 | (7) |
Balance as of end of period | $ 18 | $ 22 | $ 18 | $ 22 |
BALANCE SHEET COMPONENTS - Sc_5
BALANCE SHEET COMPONENTS - Schedule of prepaid expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Professional services | $ 107 | $ 41 |
Insurance | 97 | 61 |
Software licenses | 94 | 157 |
Other | 14 | 6 |
Patents | 10 | 39 |
Marketing programs and conferences | 8 | 74 |
Prepaid expenses | $ 330 | $ 378 |
BALANCE SHEET COMPONENTS - Sc_6
BALANCE SHEET COMPONENTS - Schedule of property and equipment, net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | $ (2,353) | $ (2,283) |
Property and equipment, net | 245 | 294 |
Depreciable Property, Plant and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,586 | 2,572 |
Property and equipment, net | 233 | 289 |
Research and development equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,569 | 1,558 |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 803 | 800 |
Autos | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 54 | 54 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 41 | 41 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 119 | 119 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 12 | $ 5 |
BALANCE SHEET COMPONENTS - Sc_7
BALANCE SHEET COMPONENTS - Schedule of accrued expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Compensation, severance and related benefits | $ 468 | $ 497 |
Legal services | 138 | 36 |
Product warranty | 15 | 18 |
Personal property and franchise tax | 0 | 6 |
Other | 0 | 3 |
Total accrued expenses | $ 621 | $ 560 |
LEASES - Schedule of lease cost
LEASES - Schedule of lease cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 55 | $ 56 | $ 111 | $ 112 |
Finance lease cost: | ||||
Amortization of right-of-use asset | 0 | 11 | 0 | 27 |
Interest on lease liability | 0 | 0 | 0 | 1 |
Total finance lease cost | $ 0 | $ 11 | $ 0 | $ 28 |
LEASES - Schedule of maturities
LEASES - Schedule of maturities of operating leases liabilities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 99 |
2024 | 186 |
Total operating lease payments | 285 |
Less imputed interest | (14) |
Total operating lease liabilities | $ 271 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - 2018 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2018 | Jun. 26, 2023 | |
Stock-Based Compensation (Details) [Line Items] | |||
Shares authorized (in shares) | 848,614 | ||
Common stock, available for issuance (in shares) | 465,580 | ||
Unrecognized compensation cost | $ 469 | ||
Stock Options | |||
Stock-Based Compensation (Details) [Line Items] | |||
Options, term | 5 years | ||
Weighted average grant date fair value (in dollars per share) | $ 1.24 | ||
Unrecognized compensation cost, period of recognition | 1 year 7 months 6 days | ||
Minimum | Stock Options | |||
Stock-Based Compensation (Details) [Line Items] | |||
Options, vesting period | 12 months | ||
Maximum | Stock Options | |||
Stock-Based Compensation (Details) [Line Items] | |||
Options, vesting period | 36 months |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of stock option activity (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Number of Options | ||||
Beginning Balance (in shares) | 280,448 | 280,810 | 280,810 | |
Granted (in shares) | 199,421 | 199,421 | ||
Exercised (in shares) | 0 | 0 | ||
Forfeited (in shares) | (107) | (433) | ||
Expired (in shares) | (336) | (372) | ||
Ending Balance (in shares) | 479,426 | 280,448 | 479,426 | 280,810 |
Exercisable (in shares) | 139,583 | 139,583 | ||
Weighted Average Exercise Price Per Share | ||||
Beginning Balance (in dollars per share) | $ 17.11 | $ 17 | $ 17 | |
Granted (in dollars per share) | 1.25 | 1.25 | ||
Exercised (in dollars per share) | 0 | 0 | ||
Forfeited (in dollars per share) | 39.64 | 119.46 | ||
Expired (in dollars per share) | 118.25 | 680.87 | ||
Ending Balance (in dollars per share) | 10.01 | $ 17.11 | 10.01 | $ 17 |
Exercisable (in dollars per share) | $ 29.16 | $ 29.16 | ||
Weighted Average Remaining Contractual Term (years) | ||||
Outstanding | 4 years 6 months | 4 years 4 months 24 days | 4 years 6 months | 3 years 10 months 24 days |
Granted | 5 years | 5 years | ||
Exercisable | 3 years 9 months 18 days | |||
Stock Options, Inducement Awards | ||||
Number of Options | ||||
Ending Balance (in shares) | 99,000 | 99,000 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of f value option assumptions (Details) - 2018 Equity Incentive Plan - Stock Options | 6 Months Ended |
Jun. 30, 2023 | |
Stock-Based Compensation (Details) [Line Items] | |
Expected volatility | 128% |
Expected dividend yield | 0% |
Expected term (in years) | 5 years |
Risk-free interest rate | 5.30% |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of restricted stock unit activity (Details) - Restricted Stock Units | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Units | |
Beginning Balance (in shares) | shares | 18,799 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (18,799) |
Forfeited (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 0 |
Weighted Average Grant-Date Fair Value Per Unit | |
Beginning Balance (in dollars per share) | $ / shares | $ 2.71 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 2.71 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending Balance (in dollars per share) | $ / shares | $ 0 |
STOCK-BASED COMPENSATION - Sc_4
STOCK-BASED COMPENSATION - Schedule of stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-Based Compensation (Details) [Line Items] | ||||||
Total stock-based compensation expense | $ 170 | $ 206 | $ 336 | $ 430 | ||
Issuance of common stock for service | $ 100 | 1 | $ 3 | |||
Research and development | ||||||
Stock-Based Compensation (Details) [Line Items] | ||||||
Total stock-based compensation expense | 5 | 3 | 9 | 4 | ||
Selling, general and administrative | ||||||
Stock-Based Compensation (Details) [Line Items] | ||||||
Total stock-based compensation expense | 165 | $ 203 | 327 | $ 426 | ||
Issuance of common stock for service | $ 56 | $ 56 |
STOCKHOLDERS' EQUITY - Activity
STOCKHOLDERS' EQUITY - Activity in stockholders' equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance (in shares) | 809,648 | 809,648 | ||||
Beginning Balance | $ 3,497 | $ 5,279 | $ 7,927 | $ 10,035 | $ 5,279 | $ 10,035 |
Stock-based compensation | 113 | 166 | 205 | 221 | ||
Issuance of common stock upon exercise of warrants | 0 | |||||
Issuance of common stock for service (in shares) | 54,466 | |||||
Issuance of common stock for service | 100 | 1 | 3 | |||
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes (in shares) | 13,225 | |||||
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes | (11) | |||||
Issuance of common stock, net of issuance costs | 1,210 | |||||
Net loss | $ (1,993) | (2,037) | (2,569) | (2,332) | $ (4,030) | (4,901) |
Ending Balance (in shares) | 2,964,485 | 2,964,485 | ||||
Ending Balance | $ 2,827 | $ 3,497 | $ 5,564 | $ 7,927 | $ 2,827 | $ 5,564 |
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance (in shares) | 2,107,339 | 809,648 | 610,614 | 610,364 | 809,648 | 610,364 |
Beginning Balance | $ 2 | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 |
Issuance of common stock upon exercise of warrants (in shares) | 1,230,000 | |||||
Issuance of common stock upon exercise of warrants | $ 1 | |||||
Issuance of common stock for service (in shares) | 54,466 | 34 | 250 | |||
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes (in shares) | 13,225 | |||||
Issuance of common stock, net of issuance costs (in shares) | 857,146 | |||||
Issuance of common stock, net of issuance costs | $ 1 | |||||
Ending Balance (in shares) | 2,964,485 | 2,107,339 | 610,648 | 610,614 | 2,964,485 | 610,648 |
Ending Balance | $ 3 | $ 2 | $ 1 | $ 1 | $ 3 | $ 1 |
Additional Paid-In Capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | 127,735 | 127,481 | 122,766 | 122,542 | 127,481 | 122,542 |
Stock-based compensation | 113 | 166 | 205 | 221 | ||
Issuance of common stock upon exercise of warrants | (1) | |||||
Issuance of common stock for service | 100 | 1 | 3 | |||
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes | (11) | |||||
Issuance of common stock, net of issuance costs | 1,209 | |||||
Ending Balance | 129,057 | 127,735 | 122,972 | 122,766 | 129,057 | 122,972 |
Accumulated Deficit | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | (124,240) | (122,203) | (114,840) | (112,508) | (122,203) | (112,508) |
Net loss | (1,993) | (2,037) | (2,569) | (2,332) | ||
Ending Balance | $ (126,233) | $ (124,240) | $ (117,409) | $ (114,840) | $ (126,233) | $ (117,409) |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Stockholders’ Equity [Line Items] | |
Exercised (in dollars per share) | $ / shares | $ 3.50 |
Issuance of common stock for service (in shares) | 54,466 |
Issuance of shares pursuant to the vesting of restricted stock units, net of shares withheld for taxes (in shares) | 13,225 |
PreFunded Warrants, Issued in November 2022, Common Stock, Registered Direct Offering | |
Stockholders’ Equity [Line Items] | |
Issuance of common stock upon exercise of warrants (in shares) | 1,230,000 |
Exercised (in dollars per share) | $ / shares | $ 3.50 |
Series C, Registered Direct Offering | |
Stockholders’ Equity [Line Items] | |
Common stock sold (in shares) | 857,146 |
Common stock sold, price per share (in dollars per share) | $ / shares | $ 1.75 |
Common stock sold, gross proceeds | $ | $ 1,500 |
Stock issuance costs | $ | $ 290 |
COMMON STOCK WARRANTS - Schedul
COMMON STOCK WARRANTS - Schedule of common stock warrant activity for the period (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Shares | ||
Beginning Balance (in shares) | 4,414,810 | |
Issued (in shares) | 921,432 | |
Exercised (in shares) | (1,230,000) | |
Expired (in shares) | (2,835) | |
Ending Balance (in shares) | 4,103,407 | 4,414,810 |
Weighted Average Exercise Price Per Share | ||
Beginning Balance (in dollars per share) | $ 6.58 | |
Issued (in dollars per share) | 1.66 | |
Exercised (in dollars per share) | 3.50 | |
Expired (in dollars per share) | 728 | |
Ending Balance (in dollars per share) | $ 5.91 | $ 6.58 |
Weighted Average Remaining Contractual Term (years) | ||
Outstanding (in years) | 3 years 2 months 12 days | 3 years |
Issued (in years) | 5 years 3 months 18 days |
COMMON STOCK WARRANTS - Narrati
COMMON STOCK WARRANTS - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) $ / shares year shares | Dec. 31, 2022 $ / shares | |
Class of Warrant or Right [Line Items] | ||
Exercise price (in dollars per share) | $ 5.91 | $ 6.58 |
Warrants, exercised (in shares) | shares | 1,230,000 | |
Warrants, exercised (in dollars per share) | $ 3.50 | |
April 2023 Registered Direct Offering | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in dollars per share) | $ 1.62 | |
Warrants, fair value | $ | $ 1,100 | |
April 2023 Registered Direct Offering | Measurement Input, Share Price | ||
Class of Warrant or Right [Line Items] | ||
Warrants, fair value, measurement input | 1.38 | |
April 2023 Registered Direct Offering | Measurement Input, Price Volatility | ||
Class of Warrant or Right [Line Items] | ||
Warrants, fair value, measurement input | 1.64 | |
April 2023 Registered Direct Offering | Measurement Input, Expected Term | ||
Class of Warrant or Right [Line Items] | ||
Warrants, fair value, measurement input | year | 5.5 | |
April 2023 Registered Direct Offering | Measurement Input, Expected Dividend Rate | ||
Class of Warrant or Right [Line Items] | ||
Warrants, fair value, measurement input | 0 | |
April 2023 Registered Direct Offering | Measurement Input, Risk Free Interest Rate | ||
Class of Warrant or Right [Line Items] | ||
Warrants, fair value, measurement input | 0.034 | |
April 2023 Registered Direct Offering | Maximum | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants (in shares) | shares | 857,146 | |
Common Stock, Warrants Issued to Placement Agent, April 2023, Registered Direct Offering | ||
Class of Warrant or Right [Line Items] | ||
Exercise price (in dollars per share) | $ 2.1875 | |
Warrants, fair value | $ | $ 82 | |
Common Stock, Warrants Issued to Placement Agent, April 2023, Registered Direct Offering | Measurement Input, Share Price | ||
Class of Warrant or Right [Line Items] | ||
Warrants, fair value, measurement input | 1.38 | |
Common Stock, Warrants Issued to Placement Agent, April 2023, Registered Direct Offering | Measurement Input, Price Volatility | ||
Class of Warrant or Right [Line Items] | ||
Warrants, fair value, measurement input | 1.65 | |
Common Stock, Warrants Issued to Placement Agent, April 2023, Registered Direct Offering | Measurement Input, Expected Term | ||
Class of Warrant or Right [Line Items] | ||
Warrants, fair value, measurement input | year | 5 | |
Common Stock, Warrants Issued to Placement Agent, April 2023, Registered Direct Offering | Measurement Input, Expected Dividend Rate | ||
Class of Warrant or Right [Line Items] | ||
Warrants, fair value, measurement input | 0 | |
Common Stock, Warrants Issued to Placement Agent, April 2023, Registered Direct Offering | Measurement Input, Risk Free Interest Rate | ||
Class of Warrant or Right [Line Items] | ||
Warrants, fair value, measurement input | 0.035 | |
Common Stock, Warrants Issued to Placement Agent, April 2023, Registered Direct Offering | Maximum | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants (in shares) | shares | 64,286 | |
PreFunded Warrants, Issued in November 2022, Common Stock, Registered Direct Offering | ||
Class of Warrant or Right [Line Items] | ||
Warrants, exercised (in shares) | shares | 1,230,000 | |
Warrants, exercised (in dollars per share) | $ 3.50 |
LOSS PER SHARE -Schedule of out
LOSS PER SHARE -Schedule of outstanding potentially dilutive securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 10,171 | 0 | 242,127 | 0 |
Common stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 0 | 0 | 166,661 | 0 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 10,171 | 0 | 75,466 | 0 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total (in shares) | 0 | 0 | 0 | 0 |
CONTINGENCIES - Narrative (Deta
CONTINGENCIES - Narrative (Details) - Superior Court of the State of California, Kennan E. Kaedar Litigation - Pending Litigation | 1 Months Ended | |
Sep. 30, 2021 defendant | Jul. 31, 2020 USD ($) | |
Loss Contingencies [Line Items] | ||
Number of defendants | 10 | |
Number of defendants, separately settled with plaintiff | 2 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Damages sought (in excess of) | $ | $ 500,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Jul. 21, 2023 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Approved sale of stock, gross proceeds to be received (up to) | $ 7,500,000 |