Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36583 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3021850 | |
Entity Address, Address Line One | 32000 Aurora Road | |
Entity Address, Address Line Two | Suite B | |
Entity Address, City or Town | Solon | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44139 | |
City Area Code | (440) | |
Local Phone Number | 715-1300 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | EFOI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,190,308 | |
Entity Central Index Key | 0000924168 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Registrant Name | ENERGY FOCUS, INC/DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 938 | $ 2,682 |
Trade accounts receivable, less allowances of $10 and $14, respectively | 1,155 | 1,240 |
Inventories, net | 7,168 | 7,866 |
Short-term deposits | 501 | 712 |
Prepaid and other current assets | 847 | 924 |
Total current assets | 10,609 | 13,424 |
Property and equipment, net | 585 | 675 |
Operating lease right-of-use assets | 1,316 | 292 |
Total assets | 12,510 | 14,391 |
Current liabilities: | ||
Accounts payable | 1,309 | 2,235 |
Accrued liabilities | 199 | 265 |
Accrued legal and professional fees | 53 | 104 |
Accrued payroll and related benefits | 486 | 718 |
Accrued sales commissions | 55 | 57 |
Accrued warranty reserve | 315 | 295 |
Deferred revenue | 0 | 268 |
Operating lease liabilities | 180 | 325 |
Finance lease liabilities | 0 | 1 |
Credit line borrowings, net of loan origination fees | 1,981 | 2,169 |
Total current liabilities | 6,418 | 8,156 |
Operating lease liabilities, net of current portion | 1,133 | 26 |
Streeterville - 2022 note, net of current maturities | 788 | 0 |
Total liabilities | 8,339 | 8,182 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $0.0001 per share | 0 | 0 |
Common stock, par value $0.0001 per share | 1 | 0 |
Additional paid-in capital | 148,221 | 144,953 |
Accumulated other comprehensive loss | (3) | (3) |
Accumulated deficit | (144,048) | (138,741) |
Total stockholders' equity | 4,171 | 6,209 |
Total liabilities and stockholders' equity | 12,510 | 14,391 |
2021 Streeterville Note | ||
Current liabilities: | ||
Notes Payable, Current | 809 | 1,719 |
2022 Streeterville Note | ||
Current liabilities: | ||
Notes Payable, Current | $ 1,031 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Trade accounts receivable, less allowances | $ 10 | $ 14 |
Preferred stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 876,447 | 876,447 |
Preferred stock, outstanding (in shares) | 876,447 | 876,447 |
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 7,811,460 | 6,368,549 |
Common stock, outstanding (in shares) | 7,811,460 | 6,368,549 |
Series A Convertible Preferred Stock | ||
Preferred stock, authorized (in shares) | 3,300,000 | 3,300,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,480 | $ 2,074 | $ 3,541 | $ 4,711 |
Cost of sales | 1,371 | 1,681 | 3,458 | 3,765 |
Gross profit | 109 | 393 | 83 | 946 |
Operating expenses: | ||||
Product development | 353 | 370 | 856 | 1,023 |
Selling, general, and administrative | 1,964 | 2,268 | 4,091 | 4,486 |
Restructuring recovery | 0 | (3) | 0 | (22) |
Total operating expenses | 2,317 | 2,635 | 4,947 | 5,487 |
Loss from operations | (2,208) | (2,242) | (4,864) | (4,541) |
Other expenses (income): | ||||
Interest expense | 260 | 216 | 444 | 343 |
Gain on forgiveness of Paycheck Protection Program loan | 0 | 0 | 0 | (801) |
Other income | 0 | 0 | (30) | 0 |
Other expenses | 18 | 15 | 29 | 32 |
Net loss | $ (2,486) | $ (2,473) | $ (5,307) | $ (4,115) |
Net loss per common share - basic and diluted | ||||
Net loss, basic (USD per share) | $ (0.35) | $ (0.59) | $ (0.78) | $ (1.05) |
Net loss, diluted (USD per share) | $ (0.35) | $ (0.59) | $ (0.78) | $ (1.05) |
Weighted average shares of common stock outstanding: | ||||
Basic weighted average common shares outstanding (in shares) | 7,166 | 4,211 | 6,803 | 3,913 |
Diluted weighted average common shares outstanding (in shares) | 7,166 | 4,211 | 6,803 | 3,913 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2020 | 2,597,000 | |||||
Beginning balance at Dec. 31, 2020 | $ 4,255 | $ 0 | $ 0 | $ 135,113 | $ (3) | $ (130,855) |
Beginning balance (in shares) at Dec. 31, 2020 | 3,525,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee stock option and stock purchase plans (in shares) | 1,000 | |||||
Stock-based compensation | 140 | 140 | ||||
Common stock withheld in lieu of income tax withholding on vesting of restricted stock units | (2) | (2) | ||||
Issuance of common stock upon the exercise of warrants (in shares) | 156,000 | |||||
Issuance of common stock upon the exercise of warrants | 527 | 527 | ||||
Net loss | (1,642) | (1,642) | ||||
Ending balance (in shares) at Mar. 31, 2021 | 2,597,000 | |||||
Ending balance at Mar. 31, 2021 | 3,278 | $ 0 | $ 0 | 135,778 | (3) | (132,497) |
Ending balance (in shares) at Mar. 31, 2021 | 3,682,000 | |||||
Beginning balance (in shares) at Dec. 31, 2020 | 2,597,000 | |||||
Beginning balance at Dec. 31, 2020 | 4,255 | $ 0 | $ 0 | 135,113 | (3) | (130,855) |
Beginning balance (in shares) at Dec. 31, 2020 | 3,525,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (4,115) | |||||
Ending balance (in shares) at Jun. 30, 2021 | 876,000 | |||||
Ending balance at Jun. 30, 2021 | 5,603 | $ 0 | $ 0 | 140,576 | (3) | (134,970) |
Ending balance (in shares) at Jun. 30, 2021 | 5,085,000 | |||||
Beginning balance (in shares) at Dec. 31, 2020 | 2,597,000 | |||||
Beginning balance at Dec. 31, 2020 | 4,255 | $ 0 | $ 0 | 135,113 | (3) | (130,855) |
Beginning balance (in shares) at Dec. 31, 2020 | 3,525,000 | |||||
Ending balance (in shares) at Dec. 31, 2021 | 876,000 | |||||
Ending balance at Dec. 31, 2021 | $ 6,209 | $ 0 | $ 0 | 144,953 | (3) | (138,741) |
Ending balance (in shares) at Dec. 31, 2021 | 6,368,549 | 6,368,000 | ||||
Beginning balance (in shares) at Mar. 31, 2021 | 2,597,000 | |||||
Beginning balance at Mar. 31, 2021 | $ 3,278 | $ 0 | $ 0 | 135,778 | (3) | (132,497) |
Beginning balance (in shares) at Mar. 31, 2021 | 3,682,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (in shares) | 990,000 | |||||
Issuance of common stock | 5,000 | 5,000 | ||||
Issuance of common stock under employee stock option and stock purchase plans (in shares) | 69,000 | |||||
Issuance of common stock under employee stock option and stock purchase plans | 59 | 59 | ||||
Stock-based compensation | 208 | 208 | ||||
Offering costs on issuance of common stock and warrants | (469) | (469) | ||||
Issuance of common stock upon conversion from preferred stock (in shares) | (1,721,000) | 344,000 | ||||
Net loss | (2,473) | (2,473) | ||||
Ending balance (in shares) at Jun. 30, 2021 | 876,000 | |||||
Ending balance at Jun. 30, 2021 | 5,603 | $ 0 | $ 0 | 140,576 | (3) | (134,970) |
Ending balance (in shares) at Jun. 30, 2021 | 5,085,000 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 876,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 6,209 | $ 0 | $ 0 | 144,953 | (3) | (138,741) |
Beginning balance (in shares) at Dec. 31, 2021 | 6,368,549 | 6,368,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 44 | 44 | ||||
Issuance of common stock upon the exercise of warrants (in shares) | 85,000 | |||||
Net loss | (2,821) | (2,821) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 876,000 | |||||
Ending balance at Mar. 31, 2022 | 3,432 | $ 0 | $ 0 | 144,997 | (3) | (141,562) |
Ending balance (in shares) at Mar. 31, 2022 | 6,453,000 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 876,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 6,209 | $ 0 | $ 0 | 144,953 | (3) | (138,741) |
Beginning balance (in shares) at Dec. 31, 2021 | 6,368,549 | 6,368,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ (5,307) | |||||
Ending balance (in shares) at Jun. 30, 2022 | 876,000 | |||||
Ending balance at Jun. 30, 2022 | $ 4,171 | $ 0 | $ 1 | 148,221 | (3) | (144,048) |
Ending balance (in shares) at Jun. 30, 2022 | 7,811,460 | 7,811,000 | ||||
Beginning balance (in shares) at Mar. 31, 2022 | 876,000 | |||||
Beginning balance at Mar. 31, 2022 | $ 3,432 | $ 0 | $ 0 | 144,997 | (3) | (141,562) |
Beginning balance (in shares) at Mar. 31, 2022 | 6,453,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee stock option and stock purchase plans (in shares) | 45,000 | |||||
Issuance of common stock under employee stock option and stock purchase plans | 5 | 5 | ||||
Stock-based compensation | 54 | 54 | ||||
Issuance of common stock upon the exercise of warrants (in shares) | 1,313,000 | |||||
Issuance of common stock upon the exercise of warrants | 3,500 | $ 1 | 3,499 | |||
Offering costs on issuance of common stock and warrants | (334) | (334) | ||||
Net loss | (2,486) | (2,486) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 876,000 | |||||
Ending balance at Jun. 30, 2022 | $ 4,171 | $ 0 | $ 1 | $ 148,221 | $ (3) | $ (144,048) |
Ending balance (in shares) at Jun. 30, 2022 | 7,811,460 | 7,811,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||||||
Net loss | $ (2,486) | $ (2,821) | $ (2,473) | $ (1,642) | $ (5,307) | $ (4,115) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Other income | 0 | 0 | (30) | 0 | |||
Gain on forgiveness of Paycheck Protection Program loan | 0 | 0 | 0 | (801) | |||
Depreciation | 43 | 53 | 87 | 100 | |||
Stock-based compensation | 54 | 208 | 98 | 348 | |||
Provision for doubtful accounts receivable | 5 | 2 | (4) | 8 | |||
Provision for slow-moving and obsolete inventories | (185) | (28) | (56) | 61 | |||
Provision for warranties | 51 | 0 | 21 | 12 | |||
Amortization of loan discounts and origination fees | 91 | 59 | 160 | 97 | |||
Changes in operating assets and liabilities (sources / (uses) of cash): | |||||||
Accounts receivable | 184 | 358 | 101 | 890 | |||
Inventories | 384 | (586) | 754 | (2,549) | |||
Short-term deposits | 47 | 137 | 59 | 149 | |||
Prepaid and other assets | 96 | (32) | 116 | (28) | |||
Accounts payable | (777) | (869) | (716) | 82 | |||
Accrued and other liabilities | (149) | (149) | (360) | (358) | |||
Deferred revenue | 0 | (2) | (268) | (1) | |||
Total adjustments | (156) | (849) | (38) | (1,990) | |||
Net cash used in operating activities | (2,642) | (3,322) | (5,345) | (6,105) | |||
Cash flows from investing activities: | |||||||
Acquisitions of property and equipment | (2) | (102) | (37) | (211) | |||
Net cash used in investing activities | (2) | (102) | (37) | (211) | |||
Cash flows from financing activities (sources / (uses) of cash): | |||||||
Proceeds from the issuance of common stock and warrants | 3,500 | 5,000 | 3,500 | 5,000 | |||
Proceeds from the exercise of warrants | 0 | 0 | 0 | 527 | |||
Offering costs paid on the issuance of common stock and warrants | (334) | (469) | (334) | (469) | |||
Principal payments under finance lease obligations | 0 | (1) | (1) | (2) | |||
Proceeds from exercise of stock options and employee stock purchase plan purchases | 5 | 59 | 5 | 59 | |||
Common stock withheld in lieu of income tax withholding on vesting of restricted stock units | 0 | 0 | 0 | (2) | |||
Deferred financing costs paid | (234) | (30) | (234) | (30) | |||
Net payments on the credit line borrowings - Credit Facilities | (1,170) | (1,871) | (273) | (791) | |||
Net cash provided by financing activities | 3,357 | 4,203 | 3,638 | 5,807 | |||
Net increase (decrease) in cash and restricted cash | 713 | 779 | (1,744) | (509) | |||
Cash and restricted cash, beginning of period | 225 | 2,682 | 890 | 2,178 | 2,682 | 2,178 | $ 2,178 |
Cash and restricted cash, end of period | 938 | 225 | 1,669 | 890 | 938 | 1,669 | 2,682 |
Classification of cash and restricted cash: | |||||||
Cash | 938 | 1,327 | 938 | 1,327 | 2,682 | ||
Restricted cash held in other assets | 0 | 342 | 0 | 342 | |||
Cash and restricted cash | 938 | $ 225 | 1,669 | $ 890 | 938 | 1,669 | $ 2,682 |
2021 Streeterville Note | |||||||
Cash flows from financing activities (sources / (uses) of cash): | |||||||
Proceeds from notes payable | 0 | 1,515 | 0 | 1,515 | |||
Payments on the 2021 Streeterville note | (410) | 0 | (1,025) | 0 | |||
2022 Streeterville Note | |||||||
Cash flows from financing activities (sources / (uses) of cash): | |||||||
Proceeds from notes payable | $ 2,000 | $ 0 | $ 2,000 | $ 0 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | NATURE OF OPERATIONS |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The significant accounting policies of our Company, which are summarized below, are consistent with accounting principles generally accepted in the United States (“U.S. GAAP”) and reflect practices appropriate to the business in which we operate. Unless indicated otherwise, the information in the Notes to the Consolidated Financial Statements relates to our operations. We have prepared the accompanying financial data for the three and six months ended June 30, 2022 and 2021 pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The accompanying financial data and information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Annual Report”). The Condensed Consolidated Balance Sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary to present fairly our Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021, Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021, and Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2022 and 2021. Use of estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management’s best knowledge of current events and actions that may impact us in the future, actual results may vary from the estimates. Estimates include, but are not limited to, the establishment of reserves for accounts receivable, sales returns, inventory obsolescence and warranty claims; the useful lives of property and equipment; valuation allowance for net deferred taxes; the cost and offsetting income related to sub-leased property; and stock-based compensation. In addition, estimates and assumptions associated with the determination of the fair value of financial instruments and evaluation of long-lived assets for impairment requires considerable judgment. Actual results could differ from those estimates and such differences could be material. Certain risks and concentrations We have certain customers whose net sales individually represented 10% or more of our total net sales, or whose net trade accounts receivable balance individually represented 10% or more of our total net trade accounts receivable; we have certain suppliers, which individually represent 10% or more of our total purchases, or whose trade accounts payable balance individually represented 10% or more of our total trade accounts payable balance, as follows: For the three months ended June 30, 2022, sales to our primary distributor for the U.S. Navy, a regional commercial lighting retrofit company, and a commercial building systems provider accounted for approximately 22%, 14%, and 13% of net sales, respectively. When sales to our primary distributor for the U.S. Navy are combined with sales to shipbuilders for the U.S. Navy, total net sales of products for the U.S. Navy comprised approximately 24% of net sales for the same period. For the three months ended June 30, 2021, sales to our primary distributor for the U.S. Navy and a regional commercial lighting retrofit company accounted for approximately 30% and 10% of net sales, respectively. When sales to our primary distributor for the U.S. Navy are combined with sales to shipbuilders for the U.S. Navy, total net sales of products for the U.S. Navy comprised approximately 35% of net sales for the same period. For the six months ended June 30, 2022, sales to our primary distributor for the U.S. Navy, a U.S. Navy shipbuilder, and a regional commercial lighting retrofit company accounted for approximately 18%, 12%, and 12% of net sales, respectively. When sales to our primary distributor for the U.S. Navy are combined with sales to shipbuilders for the U.S. Navy, total net sales of products for the U.S. Navy comprised approximately 31% of net sales for the same period. For the six months ended June 30, 2021, sales to our primary distributor for the U.S. Navy and a regional commercial lighting retrofit company accounted for approximately 41% and 11% of net sales, respectively. When sales to our primary distributor for the U.S. Navy are combined with sales to shipbuilders for the U.S. Navy, total net sales of products for the U.S. Navy comprised approximately 47% of net sales for the same period. A regional commercial lighting retrofit company and two commercial building systems providers accounted for approximately 17%, 34%, and 14% of net trade accounts receivable, respectively, at June 30, 2022. At December 31, 2021, a distributor to the U.S. Department of Defense accounted for 20% of our net trade accounts receivable and a shipbuilder for the U.S. Navy accounted for 36% of our net trade accounts receivable. Two offshore suppliers accounted for approximately 19% and 10%, respectively, of our total expenditures for the three months ended June 30, 2022. For the six months ended June 30, 2022, one offshore supplier accounted for approximately 19% of our total expenditures. For the three and six months ended June 30, 2021, one offshore supplier accounted for approximately 39% and 32%, respectively, of total expenditures. At June 30, 2022, one offshore supplier accounted for approximately 53% of our trade accounts payable balance. At December 31, 2021, this offshore supplier accounted for approximately 60% of our trade accounts payable balance. Recent accounting pronouncement In June 2016, the Financial Accounting Standards Board issued Accounting Standard Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which significantly changes the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain financial instruments, including trade receivables, and requires an entity to recognize an allowance based on its estimate of expected credit losses rather than incurred losses. For smaller reporting companies, this standard will be effective for interim and annual periods starting after December 15, 2022 and will generally require adoption on a modified retrospective basis. We are in the process of evaluating the impact of the standard but do not expect any material financial statement impact upon adoption. Revenue Net sales include revenues from sales of products and shipping and handling charges, net of estimates for product returns. Revenue is measured at the amount of consideration we expect to receive in exchange for the transferred products. We recognize revenue at the point in time when we transfer the promised products to the customer and the customer obtains control over the products. Distributors’ obligations to us are not contingent upon the resale of our products. We recognize revenue for shipping and handling charges at the time the goods are shipped to the customer, and the costs of outbound freight are included in cost of sales. We provide for product returns based on historical return rates. While we incur costs for sales commissions to our sales employees and outside agents, we recognize commission costs concurrent with the related revenue, as the amortization period is less than one year. We do not incur any other incremental costs to obtain contracts with our customers. Our product warranties are assurance-type warranties, which promise the customer that the products are as specified in the contract. Therefore, the product warranties are not a separate performance obligation and are accounted for as described below. Sales taxes assessed by governmental authorities are accounted for on a net basis and are excluded from net sales. The following table provides a disaggregation of product net sales for the periods presented (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Net sales: Commercial $ 975 $ 1,078 $ 2,109 $ 1,991 MMM products 505 996 1,432 2,720 Total net sales $ 1,480 $ 2,074 $ 3,541 $ 4,711 Accounts Receivable Our trade accounts receivable consists of amounts billed to and currently due from customers. Our customers are concentrated in the United States. In the normal course of business, we extend unsecured credit to our customers related to the sale of our products. Credit is extended to customers based on an evaluation of the customer’s financial condition and the amounts due are stated at their estimated net realizable value. We utilize a third-party account receivable insurance program with a very high credit worthy insurance company where we have the large majority of the accounts receivable insured with a portion of self-retention. This third party also provides credit-worthiness ratings and metrics that significantly assist us in evaluating the credit worthiness of both existing and new customers. We maintain allowances for sales returns and doubtful accounts receivable to provide for the estimated number of account receivables that will not be collected. The allowance is based on an assessment of customer creditworthiness and historical payment experience, the age of outstanding receivables, and performance guarantees to the extent applicable. Past due amounts are written off when our internal collection efforts have been unsuccessful, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. We do not generally require collateral from our customers. Our standard payment terms with customers are net 30 days from the date of shipment, and we do not generally offer extended payment terms to our customers, but exceptions are made in some cases for major customers or with particular orders. Accordingly, we do not adjust trade accounts receivable for the effects of financing, as we expect the period between the transfer of product to the customer and the receipt of payment from the customer to be in line with our standard payment terms. Geographic information All of our long-lived fixed assets are located in the United States. For the three months ended June 30, 2022, less than 1% of sales were attributable to customers outside the United States. For the six months ended June 30, 2022, approximately 1% of sales were attributable to customers outside the United States. For the three and six months ended June 30, 2021, there were approximately 3% and 2%, respectively, of sales attributable to customers outside the United States. The geographic location of our net sales is derived from the destination to which we ship the product. Net loss per share Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted loss per share gives effect to all dilutive potential shares of common stock outstanding during the period. Dilutive potential shares of common stock consist of incremental shares upon the exercise of stock options, warrants and convertible securities, unless the effect would be anti-dilutive. The following table presents a reconciliation of basic and diluted loss per share computations (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Numerator: Net loss $ (2,486) $ (2,473) $ (5,307) $ (4,115) Denominator: Basic and diluted weighted average shares of common stock outstanding 7,166 4,211 6,803 3,913 As a result of the net loss we incurred for the three months ended June 30, 2022, restricted share units, warrants and convertible securities representing approximately 16 thousand, 368 thousand and 175 thousand shares of common stock, respectively, were excluded from the basic loss per share calculation because their inclusion would have been anti-dilutive. As a result of the net loss we incurred for the three months ended June 30, 2021, options, restricted share units, warrants and convertible securities representing approximately 57 thousand, 9 thousand, 49 thousand and 175 thousand shares of common stock, respectively, were excluded from the basic loss per share calculation as their inclusion would have been anti-dilutive. As a result of the net loss we incurred for the six months ended June 30, 2022, restricted share units, warrants and convertible securities representing approximately 8 thousand, 219 thousand and 175 thousand shares of common stock, respectively, were excluded from the basic loss per share calculation because their inclusion would have been anti-dilutive. As a result of the net loss we incurred for the six months ended June 30, 2021, options, restricted share units, warrants and convertible securities representing approximately 69 thousand, 3 thousand, 77 thousand and 346 thousand shares of common stock, respectively, were excluded from the basic loss per share calculation because their inclusion would have been anti-dilutive. Product warranties We warrant our commercial and MMM LED products and controls for periods generally ranging from five one The following table summarizes warranty activity for the periods presented (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Balance at beginning of period $ 265 $ 239 $ 295 $ 227 Warranty accruals for current period sales 7 22 6 39 Adjustments to existing warranties 43 (2) 28 12 In kind settlements made during the period — (20) (14) (39) Accrued warranty reserve at end of period $ 315 $ 239 $ 315 $ 239 Financial Instruments June 2022 Private Placement In June 2022, we completed a private placement (the “June 2022 Private Placement”) with certain institutional investors for the sale of 1,313,462 shares of our common stock at a purchase price of $1.30 per share. We also sold to the same institutional investors (i) pre-funded warrants (the “June 2022 Pre-Funded Warrants”) to purchase 1,378,848 shares of common stock at an exercise price of $0.0001 per share and (ii) warrants (collectively with the June 2022 Pre-Funded Warrants, the “June 2022 Warrants”) to purchase up to an aggregate of 2,692,310 shares of common stock at an exercise price of $1.30 per share. In connection with the June 2022 Private Placement, we paid the placement agent commissions of $252 thousand, plus $35 thousand in expenses, and we also paid legal, accounting and other fees of $47 thousand. Total offering costs of $334 thousand have been presented as a reduction of additional paid-in capital and have been netted within equity in the Condensed Consolidated Balance Sheet as of June 30, 2022. Net proceeds to us from the June 2022 Private Placement were approximately $3.2 million. We determined the exercise price of the June 2022 Pre-Funded Warrants to be nominal and, as such, have considered the 1,378,848 shares underlying them to be outstanding effective June 7, 2022, for purposes of calculating net loss per share. As of June 30, 2022, June 2022 Warrants to purchase an aggregate of 4,071,158 shares remained outstanding, with a weighted average exercise price of $0.86 per share. In July 2022, all of the June 2022 Pre-Funded Warrants were exercised. The exercise of the remaining June 2022 Warrants outstanding could provide us with cash proceeds of up to $3.5 million in the aggregate. December 2021 Private Placement In December 2021, we completed a private placement (the “December 2021 Private Placement”) with certain institutional investors for the sale of 1,193,185 shares of our common stock at a purchase price of $3.52 per share. We also sold to the same institutional investors (i) pre-funded warrants (the “December 2021 Pre-Funded Warrants”) to purchase 85,228 shares of common stock at an exercise price of $0.0001 per share and (ii) warrants (collectively with the December 2021 Pre-Funded Warrants, the “December 2021 Warrants”) to purchase up to an aggregate of 1,278,413 shares of common stock at an exercise price of $3.52 per share. In connection with the December 2021 Private Placement, we paid the placement agent commissions of $360 thousand, plus $42 thousand in expenses, and we also paid legal, accounting and other fees of $97 thousand. Total offering costs of $499 thousand have been presented as a reduction of additional paid-in capital and have been netted within equity in the Condensed Consolidated Balance Sheet as of December 31, 2021. Net proceeds to us from the December 2021 Private Placement were approximately $4.0 million. We determined the exercise price of the December 2021 Pre-Funded Warrants to be nominal and, as such, have considered the 85,228 shares underlying them to be outstanding effective December 16, 2021, for purposes of calculating net loss per share. In January 2022, all of the December 2021 Pre-Funded Warrants were exercised. As of June 30, 2022, December 2021 Warrants to purchase an aggregate of 1,278,413 shares remained outstanding, with an exercise price of $3.52 per share. The exercise of the remaining December 2021 Warrants outstanding could provide us with cash proceeds of up to $4.5 million in the aggregate. June 2021 Equity Offering In June 2021, we completed a registered direct offering of 990,100 shares of our common stock to certain institutional investors, at a purchase price of $5.05 per share (the “June 2021 Equity Offering”). We paid the placement agent commissions of $400 thousand, plus $51 thousand in expenses, in connection with the June 2021 Equity Offering, and we also paid legal and other fees of $18 thousand. Total offering costs of $469 thousand have been presented as a reduction of additional paid-in capital and have been netted within equity in the Condensed Consolidated Balance Sheet as of December 31, 2021. Net proceeds to us from the June 2021 Equity Offering were approximately $4.5 million. January 2020 Equity Offering In January 2020, we completed a registered direct offering of 688,360 shares of our common stock to certain institutional investors, at a purchase price of $3.37 per share. We also sold, to the same institutional investors, warrants to purchase up to 688,360 shares of common stock at an exercise price of $3.37 per share (the “Investor Warrants”) in a concurrent private placement (together with the concurrent registered direct offering, the “January 2020 Equity Offering”) for a purchase price of $0.625 per warrant. In addition, we issued warrants to the placement agent to purchase up to 48,185 shares of common stock at an exercise price of $4.99 per share (together with the Investor Warrants, the “January 2020 Warrants”). As of June 30, 2022, January 2020 Warrants to purchase an aggregate of 229,414 shares remain outstanding with a weighted average exercise price of $3.67 per share. The exercise of these warrants could provide us with cash proceeds of up to $0.8 million in the aggregate. During the six months ended June 30, 2022, none of these warrants were exercised. As of June 30, 2021, January 2020 Warrants to purchase an aggregate of 310,860 shares remained outstanding with a weighted average exercises price of $3.59 per share. During the six months ended June 30, 2021, 156,446 January 2020 Warrants were exercised resulting in total proceeds of $527 thousand. Fair Value Measurements The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below. We classify the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. The carrying amounts of certain financial instruments including cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities. Based on borrowing rates currently available to us for loans with similar terms, the carrying value of borrowings under our revolving credit facilities also approximates fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. In determining the appropriate levels, we perform a detailed analysis of the assets and liabilities whose fair value is measured on a recurring basis. We review and reassess the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in a fair value measurement may result in a reclassification between fair value hierarchy levels. There were no reclassifications for all periods presented. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING There were no restructuring credits or expense recorded for the three and six months ended June 30, 2022. For the three and six months ended June 30, 2021, we recorded net restructuring credits of approximately $3 thousand and $22 thousand, respectively, related to the costs and offsetting sub-lease income and accretion expense for the remaining lease obligation for our former New York, New York office. For additional information regarding the restructuring actions taken as part of the restructuring plans, please refer to Note 3, “Restructuring,” included under Item 8, “Financial Statements and Supplementary Data,” of our 2021 Annual Report. The lease obligation on our former New York, New York office was settled as of June 30, 2021. Our restructuring liabilities consisted of estimated ongoing costs related to long-term operating lease obligations, which the Company exited. The recorded value of the lease obligation was based on the remaining lease term and payment amount, discounted to present value. Changes in subsequent periods resulting from a revision to either the timing or the amount of estimated cash flows over the future period were measured using the credit adjusted, risk free rate that was used to measure the restructuring liabilities initially. The following is a reconciliation of the beginning and ending balances of our restructuring liability as it relates to the restructuring plans (in thousands): 2021 Balance at December 31, 2020 $ 11 Payments (11) Balance at June 30, 2021 $ — As a result of the restructuring actions and initiatives described above, we have tailored our operating expenses to be more in line with our expected sales volumes; however, we continue to incur losses and have a substantial accumulated deficit, and substantial doubt about our ability to continue as a going concern continues to exist at June 30, 2022. Throughout 2021 and the first half of 2022, we have continued to evaluate and assess strategic options as we seek to achieve profitability. We plan to continue to develop advanced lighting and lighting control technologies and introduce impactful new products surrounding EnFocus TM , our patented, breakthrough powerline control platform. We also continue to believe our proprietary RedCap ® emergency backup lighting system addresses a market need and will continue to help drive commercial sales for us as it has been well received in the market. We brought the first of our UVCD products, the nUVo™ Tower portable air disinfection device for offices and homes and the nUVo™ Traveler portable personal air disinfection device for in-vehicle and smaller spaces, to market beginning in the fourth quarter of 2021, and we continue to evaluate the market demand for our UVCD products in 2022. We plan to achieve profitability by growing our sales, primarily through existing and new commercial and industrial lighting and control systems and by continuing to refine and execute on our multi-channel sales strategy that targets key verticals, such as government, healthcare, eldercare, education, and commercial and industrial, complemented by our marketing outreach campaigns and expanding channel partnerships, as well as our emerging consumer market focus. As described in Note 9, “Stockholders’ Equity,” we also raised approximately $3.2 million of net proceeds upon the issuance of common stock and June 2022 Warrants in connection with the June 2022 Private Placement, $4.0 million of net proceeds upon the issuance of common stock and December 2021 Warrants in connection with the December 2021 Private Placement, and approximately $4.5 million of net proceeds upon the issuance of common stock in connection with the June 2021 Equity Offering. As described in Note 7, “Debt”, in April 2022 and April 2021, we obtained net proceeds from bridge financing of approximately $1.8 million and $1.5 million, respectively. Also in April 2021, we expanded the borrowing capacity on one of our revolving credit facilities. The restructuring and cost cutting initiatives taken throughout 2021 and continuing into 2022, as well as the June 2022 Private Placement, the December 2021 Private Placement and the June 2021 Equity Offering that strengthened our balance sheet, our credit facility capacity increase and bridge financings in April 2022 and April 2021, and the funds we expect to receive related to the Employee Retention Tax Credit (“ERTC”; see Note 11, “Other Income” for details), were all designed to allow us to effectively execute these strategies. However, our efforts may not occur as quickly as we envision or be successful due to the long sales cycle in our industry, the corresponding time and inventory management required to ramp up sales from new products, markets, and customers into this sales cycle, the timing of introductions of additional new products, significant competition, potential sales volatility given our customer concentration, numerous interruptions and cost increases in the supply chain globally, and the long-term economic impact from the COVID-19 pandemic that has significantly diminished the interest and activities for our customers’ lighting retrofit projects until occupancy returns to more normal levels, among other factors. Additionally, global supply chain and logistics constraints are impacting our inventory purchasing strategy, as we seek to manage both shortages of available components and longer lead times in obtaining components while balancing the development and implementation of an inventory reduction plan. Disruptions in global logistics networks are also impacting our lead times and ability to efficiently and cost-effectively transport products from our third-party suppliers to our facility. As a result, we will continue to review and pursue selected external funding sources to ensure adequate financial resources to execute across the timelines required to achieve these objectives including, but not limited to, the following: • obtaining financing from traditional or non-traditional investment capital organizations or individuals; • obtaining funding from the sale of our common stock or other equity or debt instruments; and • obtaining debt financing with lending terms that more closely match our business model and capital needs. There can be no assurance that we will obtain funding on acceptable terms, in a timely fashion, or at all. Obtaining additional funding contains risks, including: • additional equity financing may not be available to us on satisfactory terms, and any equity we are able to issue could lead to dilution for current stockholders and have rights, preferences and privileges senior to our common stock; • loans or other debt instruments may have terms and/or conditions, such as interest rate, restrictive covenants, conversion features, refinancing demands, and control or revocation provisions, which are not acceptable to management or our board of directors; and • the current environment in the capital markets and volatile interest rates, combined with our capital constraints, may prevent us from being able to obtain adequate debt financing. Additionally, if we are unable to find a permanent Chief Executive Officer and a Chief Financial Officer, it may be more difficult to obtain additional financing on satisfactory terms or at all. If we fail to obtain the required additional financing to sustain our business before we are able to produce levels of revenue to meet our financial needs, we will need to delay, scale back or eliminate our growth plans and further reduce our operating costs and headcount, each of which would have a material adverse effect on our business, future prospects, and financial condition. A lack of additional funding could also result in our inability to continue as a going concern and force us to sell certain assets or discontinue or curtail our operations and, as a result, investors in the Company could lose their entire investment. Considering both quantitative and qualitative information, we continue to believe that the combination of our plans to ensure adequate external funding, timely re-organizational actions, current financial position, liquid resources, obligations due or anticipated within the next year, development and implementation of an excess inventory reduction plan, plans and initiatives in our research and development, product development and sales and marketing, and development of potential channel partnerships, if adequately executed, will provide us with an ability to finance our operations through the next twelve months and will mitigate the substantial doubt about our ability to continue as a going concern. On August 17, 2020, we received a letter from the Listing Qualifications staff (the “Staff”) of The Nasdaq Stock Market (“Nasdaq”) notifying us that we were no longer in compliance with Nasdaq Listing Rule 5550(b)(1), which requires listed companies to maintain stockholders’ equity of at least $2,500,000 if they do not meet the alternative compliance standards relating to the market value of listed securities or net income from continuing operations (the “Minimum Stockholders’ Equity Rule”). Our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020, filed on August 13, 2020, reflected that our stockholders’ equity as of June 30, 2020 was $1,714,000. Based on our timely submission of our plan to regain compliance, Nasdaq granted us an extension through February 15, 2021 to regain compliance with the Minimum Stockholders’ Equity Rule. In accordance with one part of the plan submitted to the Staff, we successfully modified our outstanding January 2020 Warrants and in December 2020, we reclassified $1.4 million from warrant liability into equity. On January 20, 2021, we received a letter from the Staff notifying us that, on a conditional basis, Nasdaq has determined that we have regained compliance with the Minimum Stockholders’ Equity Rule. At December 31, 2020, our stockholders’ equity was $4,255,000, satisfying the Minimum Stockholders’ Equity Rule. At December 31, 2021, our stockholders’ equity was $6,209,000 and at June 30, 2022, our stockholders’ equity was $4,171,000. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are stated at the lower of standard cost (which approximates actual cost determined using the first-in, first-out cost method) or net realizable value, and consist of the following (in thousands): June 30, December 31, Raw materials $ 3,758 $ 3,882 Finished goods 6,202 7,034 Reserves for excess, obsolete, and slow-moving inventories (2,792) (3,050) Inventories, net $ 7,168 $ 7,866 The following is a roll-forward of the reserves for excess, obsolete, and slow-moving inventories (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Beginning balance $ (3,179) $ (2,983) $ (3,050) $ (2,894) Accrual (56) 3 (201) (98) Reduction due to sold inventory 241 24 257 36 Write-off for disposed inventory 202 — 202 — Reserves for excess, obsolete, and slow-moving inventories $ (2,792) $ (2,956) $ (2,792) $ (2,956) As part of our expense reduction initiatives, we have significantly decreased our warehouse space beginning in the third quarter of 2022. In connection with the space reduction, in the second quarter of 2022, we began disposing of a substantial portion of our excess and obsolete commercial finished goods inventory that was more than 90% reserved. As of June 30, 2022, approximately $204 thousand of such inventory had been disposed of. Additional inventory management efforts are expected to continue in the third quarter of 2022 in order to free up additional space in the warehouse. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets and consist of the following (in thousands): June 30, December 31, Equipment (useful life 3 to 15 years) $ 1,111 $ 1,308 Tooling (useful life 2 to 5 years) 414 384 Vehicles (useful life 5 years) 83 83 Furniture and fixtures (useful life 5 years) 86 86 Computer software (useful life 3 years) 1,144 1,194 Leasehold improvements (the shorter of useful life or lease life) 142 169 Finance lease right-of-use asset 13 13 UV - Robots (useful life 5 years) 105 105 Projects in progress 101 135 Property and equipment at cost 3,199 3,477 Less: accumulated depreciation (2,614) (2,802) Property and equipment, net $ 585 $ 675 Depreciation expense was $43 thousand and $53 thousand for the three months ended June 30, 2022 and 2021, respectively. For the six months ended June 30, 2022 and 2021, depreciation expense was $87 thousand and $100 thousand, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | LEASES The Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases with expirations through 2027 under which it is responsible for related maintenance, taxes and insurance. The Company had one finance lease containing a bargain purchase option that was not renewed upon expiration of the lease during the second quarter of 2022. The lease term consists of the non-cancellable period of the lease, periods covered by options to extend the lease if the Company is reasonably certain to exercise the option, and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the option. As of January 21, 2021, the terms of one of our equipment operating leases had been extended through 2026. Additionally, as of March 25, 2022, in connection with extending through 2027, the terms of our expiring headquarters real estate operating lease for manufacturing, warehouse and office space have been modified beginning July 1, 2022 to reflect a smaller footprint at reduced costs. In accordance with Accounting Standards Codification 842, Leases (“Topic 842”), as a result of the extension, the related lease liability was remeasured and the right-of-use asset was adjusted for each lease at the time of modification in January 2021 and March 2022. The present value of the lease obligations for these leases were calculated using an incremental borrowing rate of 15.93% for the equipment lease and 16.96% for the real estate lease, which were the Company’s blended borrowing rates (including interest, annual facility fees, collateral management fees, bank fees and other miscellaneous lender fees) on its revolving lines of credit with Crossroads Financial Group, LLC (as described below in Note 7, “Debt”) and Factors Southwest L.L.C. (as described below in Note 7, “Debt”). The present value of the other remaining lease obligations continues to be calculated using an incremental borrowing rate of 7.25% (which excludes the annual facility fee and other lender fees), which was the Company’s borrowing rate on its former revolving line of credit with Austin Financial Services, Inc. (the “Austin Credit Facility”). The weighted average remaining lease term for the operating leases is 4.9 years. The Company had one restructured lease with a sub-lease component for the New York, New York office that was closed in 2017. The lease expired in June 2021. The restructured lease and sub-lease were deemed to be in-scope and thus subject to the requirements of Topic 842 and were evaluated for impairment in accordance with the asset impairment provisions of Accounting Standards Codification 360, Property, Plant and Equipment (“Topic 360”). The Company concluded its net right-of-use assets were not impaired and the carrying amount approximates expected sublease income in future years as of December 31, 2020. The Company continued to carry certain immaterial operating expenses associated with this lease as restructuring liabilities and continued to accrete those liabilities in accordance with Accounting Standards Codification 420, Exit or Disposal Cost Obligations (“Topic 420”), as has been done since the cease use date in 2017. For additional information regarding treatment of leases please refer to Note 4, “Leases,” included under Item 8, “Financial Statements and Supplementary Data,” of our 2021 Annual Report. There were no finance lease costs recognized in net loss for the three and six months ended June 30, 2022 and 2021. Components of the operating and restructured lease costs recognized in net loss for the three and six months ended June 30, 2022 and 2021, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Operating lease cost (income) Sub-lease income $ (56) $ (37) $ (81) $ (62) Lease cost 83 141 215 284 Operating lease cost, net 27 104 134 222 Restructured lease cost (income) Sub-lease income — (68) — (136) Lease cost — 53 — 109 Restructured lease income, net — (15) — (27) Total lease cost, net $ 27 $ 89 $ 134 $ 195 Supplemental balance sheet information related to the Company’s operating and finance leases as of June 30, 2022 and December 31, 2021 are as follows (in thousands): June 30, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets $ 1,316 $ 292 Operating lease liabilities $ 1,313 $ 351 Finance Leases Property and equipment 13 13 Allowances for depreciation (13) (12) Finance lease assets, net — 1 Finance lease liabilities — 1 Total finance lease liabilities $ — $ 1 Future minimum lease payments required under operating and finance leases for each of the 12-month rolling periods below in effect at June 30, 2022 are as follows (in thousands): Operating Leases July 2022 to June 2023 $ 382 July 2023 to June 2024 383 July 2024 to June 2025 381 July 2025 to June 2026 388 July 2026 to June 2027 393 Total future undiscounted lease payments 1,927 Less imputed interest (614) Total lease obligations $ 1,313 Supplemental cash flow information related to leases for the three and six months ended June 30, 2022 and 2021, was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Supplemental cash flow information Cash paid, net, for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 104 $ 124 $ 240 $ 260 Operating cash flows from restructured leases $ — $ 18 $ — $ 35 Financing cash flows from finance leases $ — $ 1 $ 1 $ 2 |
Leases | LEASES The Company leases certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases with expirations through 2027 under which it is responsible for related maintenance, taxes and insurance. The Company had one finance lease containing a bargain purchase option that was not renewed upon expiration of the lease during the second quarter of 2022. The lease term consists of the non-cancellable period of the lease, periods covered by options to extend the lease if the Company is reasonably certain to exercise the option, and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the option. As of January 21, 2021, the terms of one of our equipment operating leases had been extended through 2026. Additionally, as of March 25, 2022, in connection with extending through 2027, the terms of our expiring headquarters real estate operating lease for manufacturing, warehouse and office space have been modified beginning July 1, 2022 to reflect a smaller footprint at reduced costs. In accordance with Accounting Standards Codification 842, Leases (“Topic 842”), as a result of the extension, the related lease liability was remeasured and the right-of-use asset was adjusted for each lease at the time of modification in January 2021 and March 2022. The present value of the lease obligations for these leases were calculated using an incremental borrowing rate of 15.93% for the equipment lease and 16.96% for the real estate lease, which were the Company’s blended borrowing rates (including interest, annual facility fees, collateral management fees, bank fees and other miscellaneous lender fees) on its revolving lines of credit with Crossroads Financial Group, LLC (as described below in Note 7, “Debt”) and Factors Southwest L.L.C. (as described below in Note 7, “Debt”). The present value of the other remaining lease obligations continues to be calculated using an incremental borrowing rate of 7.25% (which excludes the annual facility fee and other lender fees), which was the Company’s borrowing rate on its former revolving line of credit with Austin Financial Services, Inc. (the “Austin Credit Facility”). The weighted average remaining lease term for the operating leases is 4.9 years. The Company had one restructured lease with a sub-lease component for the New York, New York office that was closed in 2017. The lease expired in June 2021. The restructured lease and sub-lease were deemed to be in-scope and thus subject to the requirements of Topic 842 and were evaluated for impairment in accordance with the asset impairment provisions of Accounting Standards Codification 360, Property, Plant and Equipment (“Topic 360”). The Company concluded its net right-of-use assets were not impaired and the carrying amount approximates expected sublease income in future years as of December 31, 2020. The Company continued to carry certain immaterial operating expenses associated with this lease as restructuring liabilities and continued to accrete those liabilities in accordance with Accounting Standards Codification 420, Exit or Disposal Cost Obligations (“Topic 420”), as has been done since the cease use date in 2017. For additional information regarding treatment of leases please refer to Note 4, “Leases,” included under Item 8, “Financial Statements and Supplementary Data,” of our 2021 Annual Report. There were no finance lease costs recognized in net loss for the three and six months ended June 30, 2022 and 2021. Components of the operating and restructured lease costs recognized in net loss for the three and six months ended June 30, 2022 and 2021, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Operating lease cost (income) Sub-lease income $ (56) $ (37) $ (81) $ (62) Lease cost 83 141 215 284 Operating lease cost, net 27 104 134 222 Restructured lease cost (income) Sub-lease income — (68) — (136) Lease cost — 53 — 109 Restructured lease income, net — (15) — (27) Total lease cost, net $ 27 $ 89 $ 134 $ 195 Supplemental balance sheet information related to the Company’s operating and finance leases as of June 30, 2022 and December 31, 2021 are as follows (in thousands): June 30, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets $ 1,316 $ 292 Operating lease liabilities $ 1,313 $ 351 Finance Leases Property and equipment 13 13 Allowances for depreciation (13) (12) Finance lease assets, net — 1 Finance lease liabilities — 1 Total finance lease liabilities $ — $ 1 Future minimum lease payments required under operating and finance leases for each of the 12-month rolling periods below in effect at June 30, 2022 are as follows (in thousands): Operating Leases July 2022 to June 2023 $ 382 July 2023 to June 2024 383 July 2024 to June 2025 381 July 2025 to June 2026 388 July 2026 to June 2027 393 Total future undiscounted lease payments 1,927 Less imputed interest (614) Total lease obligations $ 1,313 Supplemental cash flow information related to leases for the three and six months ended June 30, 2022 and 2021, was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Supplemental cash flow information Cash paid, net, for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 104 $ 124 $ 240 $ 260 Operating cash flows from restructured leases $ — $ 18 $ — $ 35 Financing cash flows from finance leases $ — $ 1 $ 1 $ 2 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Credit facilities On August 11, 2020, we entered into two debt financing arrangements (together, the “Credit Facilities”) that allow for expanded borrowing capacity at a lower blended borrowing cost. The first arrangement is an inventory financing facility (the “Inventory Facility”) pursuant to the Loan and Security Agreement (the “Inventory Loan Agreement”) between the Company and Crossroads Financial Group, LLC, a North Carolina limited liability company (the “IF Lender”). Borrowings under the original Inventory Facility were permitted up to the lower of (i) $3.0 million, which amount was subsequently increased to $3.5 million as described below, and (ii) a borrowing base determined from time to time based on the value of the Company’s eligible inventory, valued at 75% of inventory costs or 85% of the inventory net orderly liquidation value, less the availability reserves. On April 20, 2021, the Company and the IF Lender entered into an amendment to the Inventory Loan Agreement to increase the maximum amount that may be available to the Company from $3.0 million to $3.5 million, subject to the borrowing base as set forth in the Inventory Loan Agreement. The outstanding indebtedness under the Inventory Facility accrues at an annual rate equal to the greater of (i) 5.75% and (ii) 4.00% plus the three-month LIBOR rate (2.29% and 0.21% at June 30, 2022 and December 31, 2021, respectively) and is also subject to a service fee of 1% per month. The annualized interest rate at June 30, 2022 and December 31, 2021, which includes interest fees, the annual facility fee, bank fees and other miscellaneous lender fees, was 22.1% and 22.4%, respectively. The Inventory Facility’s interest and service fees combined amount is subject to a minimum monthly fee of $18 thousand. There would be no breakage fee for the Company for the Inventory Facility if the Company were to refinance it with an American Bankers Association (“ABA”) equivalent institution. The Inventory Facility is secured by substantially all of the present and future assets of the Company and is also governed by an intercreditor agreement among the Company, the IF Lender and the RF Lender (defined below). The Inventory Facility matures on August 11, 2022, subject to early termination upon 90 days’ notice and otherwise in accordance with the terms of the Inventory Loan Agreement. The term is automatically extended in successive one (1) year increments unless terminated by either party in accordance with the Inventory Loan Agreement. The second arrangement is a receivables financing facility (the “Receivables Facility”) pursuant to the Loan and Security Agreement (the “Receivables Loan Agreement”) between the Company and Factors Southwest L.L.C. (d/b/a FSW Funding), an Arizona limited liability company (the “RF Lender”). Borrowings under the Receivables Facility are permitted up to the lower of (i) $2.5 million and (ii) a borrowing base determined from time to time based on the value of the Company’s eligible accounts receivable, valued at 90% of the face value of such accounts receivable, less availability reserves, if any. Interest on outstanding indebtedness under the Receivables Facility accrues at an annual rate equal to (i) the highest prime rate announced from time to time by the Wall Street Journal (4.75% at June 30, 2022 and 3.25% at December 31, 2021) plus (ii) 2%. At June 30, 2022 and December 31, 2021, the annualized interest rate, which includes interest fees and the annual facility fee, was 8.4% and 8.0%, respectively. The annualized interest rate on the collateral management fee was 5.9% at both June 30, 2022 and December 31, 2021. The Receivables Facility is also secured by substantially all of the present and future assets of the Borrower and is also governed by an intercreditor agreement among the Company, the IF Lender and the RF Lender. A $25 thousand, or 1%, facility fee was charged at closing. There would be no breakage fee for the Company for the Receivables Facility if the Company were to refinance it with an ABA equivalent institution. The Receivables Facility matures on August 11, 2022, subject to early termination in accordance with the terms of the Receivables Loan Agreement, provided that the term is automatically extended in successive one (1) year increments unless terminated by either party in accordance with the Receivables Loan Agreement. Borrowings under the Inventory Facility were $1.2 million at both June 30, 2022 and December 31, 2021. Borrowings under the Receivables Facility were $0.7 million and $1.0 million at June 30, 2022 and December 31, 2021, respectively. These Credit Facilities are recorded in the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 as a current liability under the caption “Credit line borrowings.” Outstanding balances include unamortized net issuance costs totaling $18 thousand and $84 thousand for the Inventory Facility and $4 thousand and $24 thousand for the Receivables Facility as of June 30, 2022 and December 31, 2021, respectively. Streeterville Notes 2022 Note On April 21, 2022, we entered into a note purchase agreement (the “2022 Streeterville Note Purchase Agreement”) with Streeterville Capital, LLC (“Streeterville”) pursuant to which we sold and issued to Streeterville a promissory note in the principal amount of approximately $2.0 million (the “2022 Streeterville Note”). The 2022 Streeterville Note was issued with an original issue discount of $215 thousand and Streeterville paid a purchase price of approximately $1.8 million for the 2022 Streeterville Note, from which the Company paid $15 thousand to Streeterville for Streeterville’s transaction expenses. The 2022 Streeterville Note has a maturity date of April 21, 2024, and accrues interest at 8% per annum, compounded daily, on the outstanding balance. The Company may prepay the amounts outstanding under the 2022 Streeterville Note at a premium, which is 5% during the first six months and 7.5% thereafter. Prepayments at the reduced rate in the first six months are limited to 50% of the outstanding balance. Beginning on December 1, 2022, Streeterville may require the Company to redeem up to $225 thousand of the 2022 Streeterville Note in any calendar month. The Company has the right on five occasions, but not during more than three consecutive months, to defer all redemptions that Streeterville could otherwise require the Company to make during any calendar month. Each exercise of this deferral right by the Company will increase the amount outstanding under the 2022 Streeterville Note by 1.5%. The total liability for the 2022 Streeterville Note, net of discount and financing fees, was $1.8 million at June 30, 2022. Unamortized loan discount and debt issuance costs for the 2022 Streeterville Note were $212 thousand at June 30, 2022. In the event our common stock is delisted from Nasdaq, the amount outstanding under the 2022 Streeterville Note will automatically increase by 15% as of the date of such delisting. 2021 Note On April 27, 2021, we entered into a note purchase agreement with Streeterville pursuant to which we sold and issued to Streeterville a promissory note in the principal amount of approximately $1.7 million (the “2021 Streeterville Note”). The 2021 Streeterville Note was issued with an original issue discount of $194 thousand and Streeterville paid a purchase price of $1.5 million for the 2021 Streeterville Note, after deduction of $15 thousand of Streeterville’s transaction expenses. The 2021 Streeterville Note has a maturity date of April 27, 2023, and accrues interest at 8% per annum, compounded daily, on the outstanding balance. The Company may prepay the amounts outstanding under the 2021 Streeterville Note at a premium, which is 5% during the first three months and 10% thereafter. Prepayments at the reduced rate in the first three months are limited to 50% of the outstanding balance. Beginning on November 1, 2021, Streeterville may require the Company to redeem up to $205 thousand of the 2021 Streeterville Note in any calendar month. The Company has the right on three occasions to defer all redemptions that Streeterville could otherwise require the Company to make during any calendar month. Each exercise of this deferral right by the Company will increase the amount outstanding under the 2021 Streeterville Note by 1.5%. The Company exercised this right twice during the fourth quarter of 2021 and once during the second quarter of 2022. The total liability for the 2021 Streeterville Note, net of discount and financing fees, was $0.8 million and $1.7 million at June 30, 2022 and December 31, 2021, respectively. Unamortized loan discount and debt issuance costs for the 2021 Streeterville Note were $87 thousand and $140 thousand at June 30, 2022 and December 31, 2021, respectively. In the event our common stock is delisted from Nasdaq, the amount outstanding under the 2021 Streeterville Note will automatically increase by 15% as of the date of such delisting. PPP Loan On April 17, 2020, the Company was granted a loan from KeyBank National Association (“KeyBank”) in the amount of approximately $795 thousand, pursuant to the Paycheck Protection Program (“PPP”) under Division A of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020. The funds were received on April 20, 2020 and accrued interest at a rate of 1% per annum. Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The entire principal balance and interest were forgiven by the Small Business Administration (“SBA”) on February 11, 2021. The $801 thousand forgiveness income was recorded as other income in the Condensed Consolidated Statements of Operations during the six months ended June 30, 2021. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES As a result of the operating loss incurred during each of the three and six months ended June 30, 2022 and 2021, and after the application of the annual limitation set forth under Section 382 of the Internal Revenue Code of 1986, as amended (the “IRC”), it was not necessary to record a provision for U.S. federal income tax. At June 30, 2022 and December 31, 2021, we had a full valuation allowance recorded against our deferred tax assets. The valuation allowance was recorded due to uncertainties related to our ability to realize the deferred tax assets, primarily consisting of certain net operating loss carry-forwards. The valuation allowance is based on management’s estimates of taxable income by jurisdiction and the periods over which the deferred tax assets will be recoverable. At December 31, 2021, we had a net operating loss carry-forward of approximately $125.4 million for federal income tax purposes ($77.2 million for state and local income tax purposes). However, due to changes in our capital structure, approximately $71.0 million of the $125.4 million is available to offset future taxable income after the application of the limitations found under Section 382 of the Internal Revenue Code of 1986, as amended. As a result of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), net operating loss carry-forwards generated in tax years beginning after December 31, 2017 can only offset 80% of taxable income and can be carried forward indefinitely. The $9.6 million and $7.1 million in federal net operating losses generated in 2021 and 2020, respectively, will be subject to the new limitations under the Tax Act. If not utilized, the carry-forwards generated prior to December 31, 2017 of $37.5 million will begin to expire in 2023 for federal purposes and have begun to expire for state and local purposes. For a full discussion of the estimated restrictions on our utilization of net operating loss carry-forwards, please refer to Note 11, “Income Taxes,” included under Item 8, “Financial Statements and Supplementary Data,” of our 2021 Annual Report. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY June 2022 Private Placement In June 2022, we completed the June 2022 Private Placement with certain institutional investors for the sale of 1,313,462 shares of our common stock at a purchase price of $1.30 per share. We also sold to the same institutional investors (i) June 2022 Pre-Funded Warrants to purchase 1,378,848 shares of common stock at an exercise price of $0.0001 per share and (ii) warrants to purchase up to an aggregate of 2,692,310 shares of common stock at an exercise price of $1.30 per share. In connection with the June 2022 Private Placement, we paid the placement agent commissions of $252 thousand, plus $35 thousand in expenses, and we also paid legal, accounting and other fees of $47 thousand. Total offering costs of $334 thousand have been presented as a reduction of additional paid-in capital and have been netted within equity in the Condensed Consolidated Balance Sheet as of June 30, 2022. Net proceeds to us from the June 2022 Private Placement were approximately $3.2 million. We determined the exercise price of the June 2022 Pre-Funded Warrants to be nominal and, as such, have considered the 1,378,848 shares underlying them to be outstanding effective June 7, 2022, for purposes of calculating net loss per share. As of June 30, 2022, June 2022 Warrants to purchase an aggregate of 4,071,158 shares remained outstanding, with a weighted average exercise price of $0.86 per share. In July 2022, all of the June 2022 Pre-Funded Warrants were exercised. The exercise of the remaining June 2022 Warrants outstanding could provide us with cash proceeds of up to $3.5 million in the aggregate. December 2021 Private Placement In December 2021, we completed the December 2021 Private Placement with certain institutional investors for the sale of 1,193,185 shares of our common stock at a purchase price of $3.52 per share. We also sold to the same institutional investors (i) December 2021 Pre-Funded Warrants to purchase 85,228 shares of common stock at an exercise price of $0.0001 per share and (ii) warrants to purchase up to an aggregate of 1,278,413 shares of common stock at an exercise price of $3.52 per share. In connection with the December 2021 Private Placement, we paid the placement agent commission of $360 thousand plus $42 thousand in expenses and we also paid legal, accounting and other fees of $97 thousand. Total offering costs of $499 thousand have been presented as a reduction of additional paid-in capital and have been netted within equity in the Condensed Consolidated Balance Sheet as of December 31, 2021. Net proceeds from the December 2021 Private Placement were approximately $4.0 million. We determined the exercise price of the December 2021 Pre-Funded Warrants to be nominal and, as such, considered the 85,228 shares underlying them to be outstanding effective December 16, 2021, for purposes of calculating net loss per share. In January 2022, all of the December 2021 Pre-Funded Warrants were exercised. As of June 30, 2022, December 2021 Warrants to purchase an aggregate of 1,278,413 shares remained outstanding, with an exercise price of $3.52 per share. The December 2021 Warrants expire on December 16, 2026. The exercise of the remaining December 2021 Warrants outstanding could provide us with cash proceeds of up to $4.5 million in the aggregate. June 2021 Equity Offering In June 2021, we completed a registered direct offering of 990,100 shares of our common stock to certain institutional investors, at a purchase price of $5.05 per share. We paid the placement agent commissions of $400 thousand, plus $51 thousand in expenses, in connection with the June 2021 Equity Offering and we also paid legal and other fees of $18 thousand. Total offering costs of $469 thousand have been presented as a reduction of additional paid-in capital and have been netted within equity in the Condensed Consolidated Balance Sheet as of December 31, 2021. Net proceeds to us from the June 2021 Equity Offering were approximately $4.5 million. Preferred Stock Pursuant to the terms of the Convertible Notes, on January 16, 2020, following approval by our stockholders of certain amendments to the Certificate of Incorporation, the principal amount of all of the Convertible Notes and the accumulated interest thereon at the date of conversion (totaling $1.8 million) were converted at a conversion price of $0.67 per share into an aggregate of 2,709,018 shares of the Company’s Series A Preferred Stock, which is convertible on a one-for-five basis into shares of our common stock. During the year ended December 31, 2020, 111,548 shares of the Series A Preferred Stock were converted into 22,310 shares of common stock. During the year ended December 31, 2021, 1,721,023 shares of Series A Preferred Stock were converted into 344,205 shares of common stock. The Series A Preferred Stock that was converted in 2021 was held by a Schedule 13D ownership group (under Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and Rule 13d-5 promulgated thereunder) that includes Fusion Park LLC (“Fusion Park”) and 5 Elements Global Fund L.P. (controlled affiliates of James Tu, the Company's former Executive Chairman and Chief Executive Officer), as well as Brilliant Start Enterprise Inc. (“Brilliant Start”) and Jag International Ltd. (controlled affiliates of Gina Huang, a member of the Company's board of directors). Upon conversion of their respective shares of Series A Preferred Stock, Fusion Park and Brilliant Start received 184,851 and 159,354 shares, respectively, of the Company’s common stock. The Series A Preferred Stock was created by the filing of a Certificate of Designation with the Secretary of State of the State of Delaware on March 29, 2019, which designated 2,000,000 shares of the Company’s preferred stock, par value $0.0001 per share, as Series A Preferred Stock (the “Original Series A Certificate of Designation”). On January 15, 2020 with prior stockholder approval, the Company amended the Certificate of Incorporation to increase the number of authorized shares of preferred stock to 5,000,000. The Original Series A Certificate of Designation was also amended on January 15, 2020, to increase the number of shares of preferred stock designated as Series A Preferred Stock to 3,300,000 (the Original Series A Certificate of Designation, as so amended, the “Series A Certificate of Designation”). Pursuant to the Series A Certificate of Designation, each holder of outstanding shares of Series A Preferred Stock is entitled to vote with holders of outstanding shares of common stock, voting together as a single class, with respect to any and all matters presented to the stockholders of the Company for their action or consideration, except as provided by law. In any such vote, each share of Series A Preferred Stock shall entitle its holder to a number of votes equal to 11.07% of the number of shares of common stock into which such share of Series A Preferred Stock is convertible. The Series A Preferred Stock (a) has a preference upon liquidation equal to $0.67 per share and then participates on an as-converted basis with the common stock with respect to any additional distributions, (b) shall receive any dividends declared and payable on our common stock on an as-converted basis, and (c) is convertible at the option of the holder into shares of our common stock on a one-for-five basis. On March 29, 2019, the Company also filed a Certificate of Elimination with respect to its authorized, but unissued, Series A Participating Preferred Stock, to return such shares to the status of undesignated preferred stock available for designation as Series A Preferred Stock. The purchase agreement related to the Convertible Notes contains customary representations and warranties and provides for resale registration rights with respect to the shares of our common stock issuable upon conversion of the Series A Preferred Stock. January 2020 Equity Offering Issuance of Common Stock and Warrants In January 2020, we completed a registered direct offering for the sale of 688,360 shares of our common stock to certain institutional investors, at a purchase price of $3.37 per share. We also sold, to the same institutional investors, the Investor Warrants to purchase up to 688,360 shares of common stock at an exercise price of $3.37 per share in a concurrent private placement for a purchase price of $0.625 per warrant. We paid the placement agent commissions of $193 thousand, plus $50 thousand in expenses, in connection with the registered direct offering and the concurrent private placement and we also paid legal, accounting and other fees of $231 thousand related to the offering. Total offering costs of $510 thousand have been presented as a reduction of additional paid-in capital and have been netted within equity in the Condensed Consolidated Balance Sheet as of December 31, 2021. In addition, we issued warrants to the placement agent to purchase up to 48,185 shares of common stock at an exercise price of $4.99 per share. Net proceeds to us from the sale of common stock and January 2020 Warrants were approximately $2.3 million. January 2020 Warrants issued to purchase an aggregate of 229,414 shares remain outstanding at June 30, 2022 with a weighted average exercise price of $3.67 per share. The exercise of warrants could provide us with cash proceeds of up to $0.8 million in the aggregate if all warrants are exercised. During the six months ended June 30, 2022, no January 2020 Warrants were exercised. During the six months ended June 30, 2021, 156,446 warrants were exercised resulting in total proceeds of $527 thousand. As of June 30, 2022 and 2021, we had the following outstanding January 2020 warrants to purchase shares of common stock: As of June 30, 2022 As of June 30, 2021 Number of Underlying Shares Exercise Price Expiration Investor Warrants 187,734 269,180 $3.3700 January 13, 2025 Placement Agent Warrants 41,680 41,680 $4.9940 January 13, 2025 229,414 310,860 Warrant Classification We account for common stock warrants as either liabilities or equity instruments depending on the specific terms of the warrant agreement. Common stock warrants that could require cash settlement are accounted for as liabilities and are revalued at fair value at each balance sheet date subsequent to the initial issuance. Changes in the fair market value of the warrant are reflected in the condensed consolidated statement of operations as income (expense) based upon the change in fair value of warrants. Common stock warrants without cash settlement provisions are accounted for as equity and re-measurement at each balance sheet date is not required. Stock-based compensation Stock-based compensation expense is attributable to stock options and restricted stock unit awards. For all stock-based awards, we recognize expense using a straight-line amortization method. The following table summarizes stock-based compensation expense and the impact it had on operations for the periods presented (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Cost of sales $ 1 $ 3 $ 2 $ 5 Product development 6 2 12 8 Selling, general, and administrative 47 203 84 335 Total stock-based compensation $ 54 $ 208 $ 98 $ 348 Total unearned stock-based compensation was $0.2 million at June 30, 2022, compared to $0.4 million at June 30, 2021. These costs will be charged to expense and amortized on a straight-line basis in future periods. The weighted average period over which the unearned compensation at June 30, 2022 is expected to be recognized is approximately 2.7 years. Stock options The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model. Estimates utilized in the calculation include the expected life of the option, risk-free interest rate, and expected volatility, and are further detailed below. Six months ended 2022 2021 Fair value of options issued $ 1.13 $ 4.24 Exercise price $ 1.43 $ 5.48 Expected life of options (in years) 6.1 6.2 Risk-free interest rate 2.0 % 0.8 % Expected volatility 99.3 % 96.4 % Dividend yield 0.0 % 0.0 % A summary of option activity under all outstanding stock incentive plans for the six months ended June 30, 2022 is presented as follows: Number of Weighted Weighted Balance at December 31, 2021 267,109 $ 3.46 Granted 65,680 1.43 Exercised (250) 1.45 Canceled/forfeited (109,122) 2.74 Balance at June 30, 2022 223,417 $ 3.22 7.3 Vested and expected to vest at June 30, 2022 197,739 $ 3.26 7.0 Exercisable at June 30, 2022 116,179 $ 3.38 5.8 Restricted stock units A summary of restricted stock unit activity under all outstanding stock incentive plans for the six months ended June 30, 2022 is presented as follows: Restricted Weighted Weighted Balance at December 31, 2021 2,400 $ 7.14 Granted 40,000 1.40 Vested (40,000) 1.40 Balance at June 30, 2022 2,400 $ 7.14 8.2 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Purchase Commitments As of June 30, 2022, we had approximately $0.8 million in outstanding purchase commitments for inventory, all of which is expected to ship in the third quarter of 2022. |
Other Income
Other Income | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income | OTHER INCOME Employee Retention Tax Credit The CARES Act, which was enacted on March 27, 2020, provides an ERTC that is a refundable tax credit against certain employer taxes. The ERTC was subsequently amended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020, the Consolidated Appropriation Act of 2021, and the American Rescue Plan Act of 2021, all of which amended and extended the ERTC availability and guidelines under the CARES Act. Following these amendments, we and other businesses became retroactively eligible for the ERTC, and as a result of the foregoing legislation, are eligible to claim a refundable tax credit against the employer share of Social Security taxes equal to 70% of the qualified wages paid to employees between January 1, 2021 and September 30, 2021. Qualified wages are limited to $10,000 per employee per calendar quarter in 2021 for a maximum allowable ERTC per employee of $7,000 per calendar quarter in 2021. For purposes of the amended ERTC, an eligible employer is defined as having experienced a significant (20% or more) decline in gross receipts during each of the first three 2021 calendar quarters when compared with the same quarter in 2019 or the immediately preceding quarter to the corresponding calendar quarter in 2019. The credit is taken against the Company’s share of Social Security Tax when the Company’s payroll provider files, or subsequently amends the applicable quarterly employer tax filings. Under the amended guidelines, we are eligible to receive the ERTC for the second and third quarters of 2021. As part of the filing of our employer tax filings for the third quarter of 2021, we applied for and received a refund of $431 thousand, and we amended our filing for the second quarter of 2021, for which we expect to receive an additional refund of approximately $445 thousand. These amounts are recorded as other income in the Condensed Consolidated Statements of Operations during the quarter ended December 31, 2021, and the $445 thousand expected receivable is included in prepaid and other current assets in the Condensed Consolidated Balance Sheet as of June 30, 2022 and December 31, 2021. PPP Loan |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The significant accounting policies of our Company, which are summarized below, are consistent with accounting principles generally accepted in the United States (“U.S. GAAP”) and reflect practices appropriate to the business in which we operate. Unless indicated otherwise, the information in the Notes to the Consolidated Financial Statements relates to our operations. We have prepared the accompanying financial data for the three and six months ended June 30, 2022 and 2021 pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The accompanying financial data and information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Annual Report”). The Condensed Consolidated Balance Sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary to present fairly our Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021, Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021, and Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2022 and 2021. |
Use of estimates | Use of estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management’s best knowledge of current events and actions that may impact us in the future, actual results may vary from the estimates. Estimates include, but are not limited to, the establishment of reserves for accounts receivable, sales returns, inventory obsolescence and warranty claims; the useful lives of property and equipment; valuation allowance for net deferred taxes; the cost and offsetting income related to sub-leased property; and stock-based compensation. In addition, estimates and assumptions associated with the determination of the fair value of financial instruments and evaluation of long-lived assets for impairment requires considerable judgment. Actual results could differ from those estimates and such differences could be material. |
Certain risks and concentrations | Certain risks and concentrations We have certain customers whose net sales individually represented 10% or more of our total net sales, or whose net trade accounts receivable balance individually represented 10% or more of our total net trade accounts receivable; we have certain suppliers, which individually represent 10% or more of our total purchases, or whose trade accounts payable balance individually represented 10% or more of our total trade accounts payable balance, as follows: For the three months ended June 30, 2022, sales to our primary distributor for the U.S. Navy, a regional commercial lighting retrofit company, and a commercial building systems provider accounted for approximately 22%, 14%, and 13% of net sales, respectively. When sales to our primary distributor for the U.S. Navy are combined with sales to shipbuilders for the U.S. Navy, total net sales of products for the U.S. Navy comprised approximately 24% of net sales for the same period. For the three months ended June 30, 2021, sales to our primary distributor for the U.S. Navy and a regional commercial lighting retrofit company accounted for approximately 30% and 10% of net sales, respectively. When sales to our primary distributor for the U.S. Navy are combined with sales to shipbuilders for the U.S. Navy, total net sales of products for the U.S. Navy comprised approximately 35% of net sales for the same period. For the six months ended June 30, 2022, sales to our primary distributor for the U.S. Navy, a U.S. Navy shipbuilder, and a regional commercial lighting retrofit company accounted for approximately 18%, 12%, and 12% of net sales, respectively. When sales to our primary distributor for the U.S. Navy are combined with sales to shipbuilders for the U.S. Navy, total net sales of products for the U.S. Navy comprised approximately 31% of net sales for the same period. For the six months ended June 30, 2021, sales to our primary distributor for the U.S. Navy and a regional commercial lighting retrofit company accounted for approximately 41% and 11% of net sales, respectively. When sales to our primary distributor for the U.S. Navy are combined with sales to shipbuilders for the U.S. Navy, total net sales of products for the U.S. Navy comprised approximately 47% of net sales for the same period. A regional commercial lighting retrofit company and two commercial building systems providers accounted for approximately 17%, 34%, and 14% of net trade accounts receivable, respectively, at June 30, 2022. At December 31, 2021, a distributor to the U.S. Department of Defense accounted for 20% of our net trade accounts receivable and a shipbuilder for the U.S. Navy accounted for 36% of our net trade accounts receivable. Two offshore suppliers accounted for approximately 19% and 10%, respectively, of our total expenditures for the three months ended June 30, 2022. For the six months ended June 30, 2022, one offshore supplier accounted for approximately 19% of our total expenditures. For the three and six months ended June 30, 2021, one offshore supplier accounted for approximately 39% and 32%, respectively, of total expenditures. At June 30, 2022, one offshore supplier accounted for approximately 53% of our trade accounts payable balance. At December 31, 2021, this offshore supplier accounted for approximately 60% of our trade accounts payable balance. |
Recent accounting pronouncements | Recent accounting pronouncement In June 2016, the Financial Accounting Standards Board issued Accounting Standard Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which significantly changes the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain financial instruments, including trade receivables, and requires an entity to recognize an allowance based on its estimate of expected credit losses rather than incurred losses. For smaller reporting companies, this standard will be effective for interim and annual periods starting after December 15, 2022 and will generally require adoption on a modified retrospective basis. We are in the process of evaluating the impact of the standard but do not expect any material financial statement impact upon adoption. |
Revenue | Revenue Net sales include revenues from sales of products and shipping and handling charges, net of estimates for product returns. Revenue is measured at the amount of consideration we expect to receive in exchange for the transferred products. We recognize revenue at the point in time when we transfer the promised products to the customer and the customer obtains control over the products. Distributors’ obligations to us are not contingent upon the resale of our products. We recognize revenue for shipping and handling charges at the time the goods are shipped to the customer, and the costs of outbound freight are included in cost of sales. We provide for product returns based on historical return rates. While we incur costs for sales commissions to our sales employees and outside agents, we recognize commission costs concurrent with the related |
Accounts Receivable | Accounts Receivable Our trade accounts receivable consists of amounts billed to and currently due from customers. Our customers are concentrated in the United States. In the normal course of business, we extend unsecured credit to our customers related to the sale of our products. Credit is extended to customers based on an evaluation of the customer’s financial condition and the amounts due are stated at their estimated net realizable value. We utilize a third-party account receivable insurance program with a very high credit worthy insurance company where we have the large majority of the accounts receivable insured with a portion of self-retention. This third party also provides credit-worthiness ratings and metrics that significantly assist us in evaluating the credit worthiness of both existing and new customers. We maintain allowances for sales returns and doubtful accounts receivable to provide for the estimated number of account receivables that will not be collected. The allowance is based on an assessment of customer creditworthiness and historical payment experience, the age of outstanding receivables, and performance guarantees to the extent applicable. Past due amounts are written off when our internal collection efforts have been unsuccessful, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. We do not generally require collateral from our customers. Our standard payment terms with customers are net 30 days from the date of shipment, and we do not generally offer extended payment terms to our customers, but exceptions are made in some cases for major customers or with particular orders. Accordingly, we do not adjust trade accounts receivable for the effects of financing, as we expect the period between the transfer of product to the customer and the receipt of payment from the customer to be in line with our standard payment terms. |
Net loss per share | Net loss per share Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted loss per share gives effect to all dilutive potential shares of common stock outstanding during the period. Dilutive potential shares of common stock consist of incremental shares upon the exercise of stock options, warrants and convertible securities, unless the effect would be anti-dilutive. |
Product warranties | Product warranties We warrant our commercial and MMM LED products and controls for periods generally ranging from five one |
Financial Instruments | Financial Instruments June 2022 Private Placement In June 2022, we completed a private placement (the “June 2022 Private Placement”) with certain institutional investors for the sale of 1,313,462 shares of our common stock at a purchase price of $1.30 per share. We also sold to the same institutional investors (i) pre-funded warrants (the “June 2022 Pre-Funded Warrants”) to purchase 1,378,848 shares of common stock at an exercise price of $0.0001 per share and (ii) warrants (collectively with the June 2022 Pre-Funded Warrants, the “June 2022 Warrants”) to purchase up to an aggregate of 2,692,310 shares of common stock at an exercise price of $1.30 per share. In connection with the June 2022 Private Placement, we paid the placement agent commissions of $252 thousand, plus $35 thousand in expenses, and we also paid legal, accounting and other fees of $47 thousand. Total offering costs of $334 thousand have been presented as a reduction of additional paid-in capital and have been netted within equity in the Condensed Consolidated Balance Sheet as of June 30, 2022. Net proceeds to us from the June 2022 Private Placement were approximately $3.2 million. We determined the exercise price of the June 2022 Pre-Funded Warrants to be nominal and, as such, have considered the 1,378,848 shares underlying them to be outstanding effective June 7, 2022, for purposes of calculating net loss per share. As of June 30, 2022, June 2022 Warrants to purchase an aggregate of 4,071,158 shares remained outstanding, with a weighted average exercise price of $0.86 per share. In July 2022, all of the June 2022 Pre-Funded Warrants were exercised. The exercise of the remaining June 2022 Warrants outstanding could provide us with cash proceeds of up to $3.5 million in the aggregate. December 2021 Private Placement In December 2021, we completed a private placement (the “December 2021 Private Placement”) with certain institutional investors for the sale of 1,193,185 shares of our common stock at a purchase price of $3.52 per share. We also sold to the same institutional investors (i) pre-funded warrants (the “December 2021 Pre-Funded Warrants”) to purchase 85,228 shares of common stock at an exercise price of $0.0001 per share and (ii) warrants (collectively with the December 2021 Pre-Funded Warrants, the “December 2021 Warrants”) to purchase up to an aggregate of 1,278,413 shares of common stock at an exercise price of $3.52 per share. In connection with the December 2021 Private Placement, we paid the placement agent commissions of $360 thousand, plus $42 thousand in expenses, and we also paid legal, accounting and other fees of $97 thousand. Total offering costs of $499 thousand have been presented as a reduction of additional paid-in capital and have been netted within equity in the Condensed Consolidated Balance Sheet as of December 31, 2021. Net proceeds to us from the December 2021 Private Placement were approximately $4.0 million. We determined the exercise price of the December 2021 Pre-Funded Warrants to be nominal and, as such, have considered the 85,228 shares underlying them to be outstanding effective December 16, 2021, for purposes of calculating net loss per share. In January 2022, all of the December 2021 Pre-Funded Warrants were exercised. As of June 30, 2022, December 2021 Warrants to purchase an aggregate of 1,278,413 shares remained outstanding, with an exercise price of $3.52 per share. The exercise of the remaining December 2021 Warrants outstanding could provide us with cash proceeds of up to $4.5 million in the aggregate. June 2021 Equity Offering In June 2021, we completed a registered direct offering of 990,100 shares of our common stock to certain institutional investors, at a purchase price of $5.05 per share (the “June 2021 Equity Offering”). We paid the placement agent commissions of $400 thousand, plus $51 thousand in expenses, in connection with the June 2021 Equity Offering, and we also paid legal and other fees of $18 thousand. Total offering costs of $469 thousand have been presented as a reduction of additional paid-in capital and have been netted within equity in the Condensed Consolidated Balance Sheet as of December 31, 2021. Net proceeds to us from the June 2021 Equity Offering were approximately $4.5 million. January 2020 Equity Offering In January 2020, we completed a registered direct offering of 688,360 shares of our common stock to certain institutional investors, at a purchase price of $3.37 per share. We also sold, to the same institutional investors, warrants to purchase up to 688,360 shares of common stock at an exercise price of $3.37 per share (the “Investor Warrants”) in a concurrent private placement (together with the concurrent registered direct offering, the “January 2020 Equity Offering”) for a purchase price of $0.625 per warrant. In addition, we issued warrants to the placement agent to purchase up to 48,185 shares of common stock at an exercise price of $4.99 per share (together with the Investor Warrants, the “January 2020 Warrants”). As of June 30, 2022, January 2020 Warrants to purchase an aggregate of 229,414 shares remain outstanding with a weighted average exercise price of $3.67 per share. The exercise of these warrants could provide us with cash proceeds of up to $0.8 million in the aggregate. During the six months ended June 30, 2022, none of these warrants were exercised. As of June 30, 2021, January 2020 Warrants to purchase an aggregate of 310,860 shares remained outstanding with a weighted average exercises price of $3.59 per share. During the six months ended June 30, 2021, 156,446 January 2020 Warrants were exercised resulting in total proceeds of $527 thousand. Fair Value Measurements The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below. We classify the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. The carrying amounts of certain financial instruments including cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities. Based on borrowing rates currently available to us for loans with similar terms, the carrying value of borrowings under our revolving credit facilities also approximates fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. In determining the appropriate levels, we perform a detailed analysis of the assets and liabilities whose fair value is measured on a recurring basis. We review and reassess the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in a fair value measurement may result in a reclassification between fair value hierarchy levels. There were no reclassifications for all periods presented. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | The following table provides a disaggregation of product net sales for the periods presented (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Net sales: Commercial $ 975 $ 1,078 $ 2,109 $ 1,991 MMM products 505 996 1,432 2,720 Total net sales $ 1,480 $ 2,074 $ 3,541 $ 4,711 |
Reconciliation of basic and diluted income (loss) per share | The following table presents a reconciliation of basic and diluted loss per share computations (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Numerator: Net loss $ (2,486) $ (2,473) $ (5,307) $ (4,115) Denominator: Basic and diluted weighted average shares of common stock outstanding 7,166 4,211 6,803 3,913 |
Schedule of warranty activity | The following table summarizes warranty activity for the periods presented (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Balance at beginning of period $ 265 $ 239 $ 295 $ 227 Warranty accruals for current period sales 7 22 6 39 Adjustments to existing warranties 43 (2) 28 12 In kind settlements made during the period — (20) (14) (39) Accrued warranty reserve at end of period $ 315 $ 239 $ 315 $ 239 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following is a reconciliation of the beginning and ending balances of our restructuring liability as it relates to the restructuring plans (in thousands): 2021 Balance at December 31, 2020 $ 11 Payments (11) Balance at June 30, 2021 $ — |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories are stated at the lower of standard cost (which approximates actual cost determined using the first-in, first-out cost method) or net realizable value, and consist of the following (in thousands): June 30, December 31, Raw materials $ 3,758 $ 3,882 Finished goods 6,202 7,034 Reserves for excess, obsolete, and slow-moving inventories (2,792) (3,050) Inventories, net $ 7,168 $ 7,866 The following is a roll-forward of the reserves for excess, obsolete, and slow-moving inventories (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Beginning balance $ (3,179) $ (2,983) $ (3,050) $ (2,894) Accrual (56) 3 (201) (98) Reduction due to sold inventory 241 24 257 36 Write-off for disposed inventory 202 — 202 — Reserves for excess, obsolete, and slow-moving inventories $ (2,792) $ (2,956) $ (2,792) $ (2,956) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets and consist of the following (in thousands): June 30, December 31, Equipment (useful life 3 to 15 years) $ 1,111 $ 1,308 Tooling (useful life 2 to 5 years) 414 384 Vehicles (useful life 5 years) 83 83 Furniture and fixtures (useful life 5 years) 86 86 Computer software (useful life 3 years) 1,144 1,194 Leasehold improvements (the shorter of useful life or lease life) 142 169 Finance lease right-of-use asset 13 13 UV - Robots (useful life 5 years) 105 105 Projects in progress 101 135 Property and equipment at cost 3,199 3,477 Less: accumulated depreciation (2,614) (2,802) Property and equipment, net $ 585 $ 675 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Components of Lease Cost and Supplemental Cash Flow Information | Components of the operating and restructured lease costs recognized in net loss for the three and six months ended June 30, 2022 and 2021, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Operating lease cost (income) Sub-lease income $ (56) $ (37) $ (81) $ (62) Lease cost 83 141 215 284 Operating lease cost, net 27 104 134 222 Restructured lease cost (income) Sub-lease income — (68) — (136) Lease cost — 53 — 109 Restructured lease income, net — (15) — (27) Total lease cost, net $ 27 $ 89 $ 134 $ 195 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to the Company’s operating and finance leases as of June 30, 2022 and December 31, 2021 are as follows (in thousands): June 30, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets $ 1,316 $ 292 Operating lease liabilities $ 1,313 $ 351 Finance Leases Property and equipment 13 13 Allowances for depreciation (13) (12) Finance lease assets, net — 1 Finance lease liabilities — 1 Total finance lease liabilities $ — $ 1 |
Schedule of Future Maturities of Finance Lease Liabilities | Future minimum lease payments required under operating and finance leases for each of the 12-month rolling periods below in effect at June 30, 2022 are as follows (in thousands): Operating Leases July 2022 to June 2023 $ 382 July 2023 to June 2024 383 July 2024 to June 2025 381 July 2025 to June 2026 388 July 2026 to June 2027 393 Total future undiscounted lease payments 1,927 Less imputed interest (614) Total lease obligations $ 1,313 |
Schedule of Future Maturities of Operating Lease Liabilities | Future minimum lease payments required under operating and finance leases for each of the 12-month rolling periods below in effect at June 30, 2022 are as follows (in thousands): Operating Leases July 2022 to June 2023 $ 382 July 2023 to June 2024 383 July 2024 to June 2025 381 July 2025 to June 2026 388 July 2026 to June 2027 393 Total future undiscounted lease payments 1,927 Less imputed interest (614) Total lease obligations $ 1,313 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the three and six months ended June 30, 2022 and 2021, was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Supplemental cash flow information Cash paid, net, for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 104 $ 124 $ 240 $ 260 Operating cash flows from restructured leases $ — $ 18 $ — $ 35 Financing cash flows from finance leases $ — $ 1 $ 1 $ 2 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of stockholders' equity note, warrants or rights | As of June 30, 2022 and 2021, we had the following outstanding January 2020 warrants to purchase shares of common stock: As of June 30, 2022 As of June 30, 2021 Number of Underlying Shares Exercise Price Expiration Investor Warrants 187,734 269,180 $3.3700 January 13, 2025 Placement Agent Warrants 41,680 41,680 $4.9940 January 13, 2025 229,414 310,860 |
Summary of stock-based compensation expense | The following table summarizes stock-based compensation expense and the impact it had on operations for the periods presented (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Cost of sales $ 1 $ 3 $ 2 $ 5 Product development 6 2 12 8 Selling, general, and administrative 47 203 84 335 Total stock-based compensation $ 54 $ 208 $ 98 $ 348 |
Schedule of valuation assumptions | Estimates utilized in the calculation include the expected life of the option, risk-free interest rate, and expected volatility, and are further detailed below. Six months ended 2022 2021 Fair value of options issued $ 1.13 $ 4.24 Exercise price $ 1.43 $ 5.48 Expected life of options (in years) 6.1 6.2 Risk-free interest rate 2.0 % 0.8 % Expected volatility 99.3 % 96.4 % Dividend yield 0.0 % 0.0 % |
Summary of option activity | A summary of option activity under all outstanding stock incentive plans for the six months ended June 30, 2022 is presented as follows: Number of Weighted Weighted Balance at December 31, 2021 267,109 $ 3.46 Granted 65,680 1.43 Exercised (250) 1.45 Canceled/forfeited (109,122) 2.74 Balance at June 30, 2022 223,417 $ 3.22 7.3 Vested and expected to vest at June 30, 2022 197,739 $ 3.26 7.0 Exercisable at June 30, 2022 116,179 $ 3.38 5.8 |
Summary of restricted stock activity | A summary of restricted stock unit activity under all outstanding stock incentive plans for the six months ended June 30, 2022 is presented as follows: Restricted Weighted Weighted Balance at December 31, 2021 2,400 $ 7.14 Granted 40,000 1.40 Vested (40,000) 1.40 Balance at June 30, 2022 2,400 $ 7.14 8.2 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Certain Risks and Concentrations (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Total Expenditures | Supplier concentration risk | Offshore Supplier | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 39% | 19% | 32% | ||
Total Expenditures | Supplier concentration risk | Offshore Supplier One | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 19% | ||||
Total Expenditures | Supplier concentration risk | Offshore Supplier Two | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 10% | ||||
Accounts Payable | Supplier concentration risk | Offshore Supplier | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 53% | 60% | |||
Distributor To The U.S. Navy | Revenue | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 22% | 30% | 18% | 41% | |
Shipbuilder For U.S. Navy | Revenue | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 12% | ||||
Shipbuilder For U.S. Navy | Accounts receivable | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 36% | ||||
Commercial Building Systems Provider | Revenue | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 13% | ||||
Distributor To The U.S. Navy Combined With Sales To Shipbuilders | Revenue | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 24% | 35% | 31% | 47% | |
Regional Commercial Lighting Retrofit Company | Revenue | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 14% | 10% | 12% | 11% | |
Regional Commercial Lighting Retrofit Company | Accounts receivable | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 17% | ||||
Distributor To The U.S. Department Of Defense | Accounts receivable | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 20% | ||||
Commercial Building Systems Provider One | Accounts receivable | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 34% | ||||
Commercial Building Systems Provider Two | Accounts receivable | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 14% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 1,480 | $ 2,074 | $ 3,541 | $ 4,711 |
Commercial | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 975 | 1,078 | 2,109 | 1,991 |
MMM products | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 505 | $ 996 | $ 1,432 | $ 2,720 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Geographic information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Countries outside of the United States | Revenue | Geographic concentration risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (less than for geographic concentration risk for the three months ended June 30, 2022) | 1% | 3% | 1% | 2% |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation of Basic and Diluted Loss per Share (Details) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 11, 2020 | Jun. 30, 2022 USD ($) shares | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) shares | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) shares | |
Numerator: | |||||||
Net loss | $ | $ (2,486) | $ (2,821) | $ (2,473) | $ (1,642) | $ (5,307) | $ (4,115) | |
Denominator: | |||||||
Basic weighted average common shares outstanding (in shares) | 7,166 | 4,211 | 6,803 | 3,913 | |||
Diluted weighted average common shares outstanding (in shares) | 7,166 | 4,211 | 6,803 | 3,913 | |||
Reverse stock split ratio | 0.2 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Net Loss per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Warrants | ||||
Impairment Effects on Earnings Per Share [Line Items] | ||||
Securities excluded from net loss per share calculation (less than for options in the three months ended June 30, 2020) (in shares) | 368 | 49 | 219 | 77 |
Convertible securities | ||||
Impairment Effects on Earnings Per Share [Line Items] | ||||
Securities excluded from net loss per share calculation (less than for options in the three months ended June 30, 2020) (in shares) | 175 | 175 | 175 | 346 |
Options | ||||
Impairment Effects on Earnings Per Share [Line Items] | ||||
Securities excluded from net loss per share calculation (less than for options in the three months ended June 30, 2020) (in shares) | 57 | 69 | ||
Restricted share units | ||||
Impairment Effects on Earnings Per Share [Line Items] | ||||
Securities excluded from net loss per share calculation (less than for options in the three months ended June 30, 2020) (in shares) | 16 | 9 | 8 | 3 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies - Product Warranties (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Minimum | Commercial | |
Product Warranty Liability [Line Items] | |
Warranty service periods | 5 years |
Minimum | MMM LED Products | |
Product Warranty Liability [Line Items] | |
Warranty service periods | 5 years |
Minimum | UVCD Products | |
Product Warranty Liability [Line Items] | |
Warranty service periods | 1 year |
Maximum | Commercial | |
Product Warranty Liability [Line Items] | |
Warranty service periods | 10 years |
Maximum | MMM LED Products | |
Product Warranty Liability [Line Items] | |
Warranty service periods | 10 years |
Maximum | UVCD Products | |
Product Warranty Liability [Line Items] | |
Warranty service periods | 5 years |
Basis of Presentation and Su_10
Basis of Presentation and Summary of Significant Accounting Policies - Warranty Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance at beginning of period | $ 265 | $ 239 | $ 295 | $ 227 |
Warranty accruals for current period sales | 7 | 22 | 6 | 39 |
Adjustments to existing warranties | 43 | (2) | 28 | 12 |
In kind settlements made during the period | 0 | (20) | (14) | (39) |
Accrued warranty reserve at end of period | $ 315 | $ 239 | $ 315 | $ 239 |
Basis of Presentation and Su_11
Basis of Presentation and Summary of Significant Accounting Policies - Financial Instruments (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 16, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Jan. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||||||||
Amount paid for clearing fees | $ 18 | |||||||||
Offering costs paid on the issuance of common stock and warrants | $ 334 | $ 469 | $ 334 | $ 469 | ||||||
Warrants issued (in shares) | 229,414 | 310,860 | ||||||||
Proceeds from the exercise of warrants | $ 0 | $ 0 | $ 0 | $ 527 | ||||||
June 2022 Private Placement | ||||||||||
Class of Stock [Line Items] | ||||||||||
Sale of common stock (in shares) | 1,313,462 | |||||||||
Sale of common stock (USD per share) | $ 1.30 | $ 1.30 | $ 1.30 | |||||||
Securities called by warrants (in shares) | 4,071,158 | 4,071,158 | 4,071,158 | |||||||
Exercise price of common stock (USD per share) | $ 0.86 | $ 0.86 | $ 0.86 | |||||||
Amount paid for placement agent commissions | $ 252 | |||||||||
Amount paid related to expenses for registered direct offering and concurrent private placement | 35 | |||||||||
Amount paid for clearing fees | 47 | |||||||||
Offering costs paid on the issuance of common stock and warrants | 334 | |||||||||
Proceeds from sale of common stock and warrants | $ 3,200 | |||||||||
Estimated proceeds from issuance of warrants | $ 3,500 | |||||||||
June 2022 Private Placement | Pre-Funded Warrants | ||||||||||
Class of Stock [Line Items] | ||||||||||
Securities called by warrants (in shares) | 1,378,848 | 1,378,848 | 1,378,848 | |||||||
Exercise price of common stock (USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
June 2022 Private Placement | Warrants | ||||||||||
Class of Stock [Line Items] | ||||||||||
Securities called by warrants (in shares) | 2,692,310 | 2,692,310 | 2,692,310 | |||||||
Exercise price of common stock (USD per share) | $ 1.30 | $ 1.30 | $ 1.30 | |||||||
December 2021 Private Placement | ||||||||||
Class of Stock [Line Items] | ||||||||||
Sale of common stock (in shares) | 1,193,185 | |||||||||
Sale of common stock (USD per share) | $ 3.52 | $ 3.52 | ||||||||
Securities called by warrants (in shares) | 1,278,413 | 1,278,413 | 1,278,413 | |||||||
Exercise price of common stock (USD per share) | $ 3.52 | $ 3.52 | $ 3.52 | |||||||
Amount paid for placement agent commissions | $ 360 | |||||||||
Amount paid related to expenses for registered direct offering and concurrent private placement | 42 | |||||||||
Amount paid for clearing fees | 97 | |||||||||
Offering costs paid on the issuance of common stock and warrants | 499 | |||||||||
Proceeds from sale of common stock and warrants | $ 4,000 | |||||||||
Estimated proceeds from issuance of warrants | $ 4,500 | |||||||||
December 2021 Private Placement | Pre-Funded Warrants | ||||||||||
Class of Stock [Line Items] | ||||||||||
Securities called by warrants (in shares) | 85,228 | 85,228 | ||||||||
Exercise price of common stock (USD per share) | $ 0.0001 | $ 0.0001 | ||||||||
Warrants issued (in shares) | 85,228 | |||||||||
December 2021 Private Placement | Warrants | ||||||||||
Class of Stock [Line Items] | ||||||||||
Securities called by warrants (in shares) | 1,278,413 | 1,278,413 | ||||||||
Exercise price of common stock (USD per share) | $ 3.52 | $ 3.52 | ||||||||
Investor Warrants | ||||||||||
Class of Stock [Line Items] | ||||||||||
Sale of common stock (in shares) | 990,100 | |||||||||
Sale of common stock (USD per share) | $ 5.05 | $ 5.05 | $ 5.05 | |||||||
Exercise price of common stock (USD per share) | $ 3.37 | |||||||||
Amount paid for placement agent commissions | $ 400 | |||||||||
Amount paid related to expenses for registered direct offering and concurrent private placement | 51 | |||||||||
Offering costs paid on the issuance of common stock and warrants | $ 469 | |||||||||
Proceeds from sale of common stock and warrants | $ 4,500 | |||||||||
Warrants issued (in shares) | 187,734 | 269,180 | ||||||||
January 2020 Institutional Investor | ||||||||||
Class of Stock [Line Items] | ||||||||||
Sale of common stock (in shares) | 688,360 | |||||||||
Sale of common stock (USD per share) | $ 3.3700 | |||||||||
Securities called by warrants (in shares) | 688,360 | |||||||||
Purchase price (USD per share) | $ 0.625 | |||||||||
January 2020 Equity Offering, Private Placement | ||||||||||
Class of Stock [Line Items] | ||||||||||
Securities called by warrants (in shares) | 48,185 | |||||||||
Exercise price of common stock (USD per share) | $ 4.9940 | |||||||||
Warrants issued (in shares) | 41,680 | 41,680 | ||||||||
January 2020 Equity Offering | ||||||||||
Class of Stock [Line Items] | ||||||||||
Exercise price of common stock (USD per share) | $ 3.67 | $ 3.59 | $ 3.67 | $ 3.59 | $ 3.67 | $ 3.59 | ||||
Amount paid for placement agent commissions | $ 193 | |||||||||
Amount paid related to expenses for registered direct offering and concurrent private placement | 50 | |||||||||
Amount paid for clearing fees | 231 | |||||||||
Offering costs paid on the issuance of common stock and warrants | $ 510 | |||||||||
Proceeds from sale of common stock and warrants | $ 2,300 | |||||||||
Estimated proceeds from issuance of warrants | $ 800 | |||||||||
Warrants issued (in shares) | 229,414 | 310,860 | ||||||||
Warrants exercised (in shares) | 0 | (156,446) |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Apr. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring recovery | $ 0 | $ (3) | $ 0 | $ (22) | ||||||||
Purchase price | $ 1,800 | $ 1,500 | ||||||||||
Stockholders' equity | $ 6,209 | $ 5,603 | $ 4,255 | $ 4,171 | $ 5,603 | $ 4,171 | $ 5,603 | $ 3,432 | $ 3,278 | $ 1,714 | ||
Warrant liability - modification | $ 1,400 | |||||||||||
December 2021 Private Placement | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Proceeds from sale of common stock and warrants | $ 4,000 | |||||||||||
Investor Warrants | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Proceeds from sale of common stock and warrants | $ 4,500 |
Restructuring - Reconciliation
Restructuring - Reconciliation of Restructuring Liability (Details) - Restructuring liability $ in Thousands | 6 Months Ended |
Jun. 30, 2021 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2020 | $ 11 |
Payments | (11) |
Balance at June 30, 2021 | $ 0 |
Inventories - Inventories, Net
Inventories - Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,758 | $ 3,882 |
Finished goods | 6,202 | 7,034 |
Reserves for excess, obsolete, and slow-moving inventories | (2,792) | (3,050) |
Inventories, net | $ 7,168 | $ 7,866 |
Inventories - Reserve Rollforwa
Inventories - Reserve Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Inventory, Reserve [Roll Forward] | ||||||
Beginning balance | $ (3,179) | $ (3,050) | $ (2,983) | $ (2,894) | $ (3,050) | $ (2,894) |
Accrual | (56) | 3 | (201) | (98) | ||
Reduction due to sold inventory | 241 | 24 | 257 | 36 | ||
Write-off for disposed inventory | 202 | 0 | 0 | 202 | ||
Reserves for excess, obsolete, and slow-moving inventories | $ (2,792) | $ (3,179) | $ (2,956) | $ (2,983) | $ (2,792) | $ (2,956) |
Inventories - Narrative (Detail
Inventories - Narrative (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Inventory [Line Items] | |
Disposed inventory | $ 204 |
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff | |
Inventory [Line Items] | |
Reserved excess and obsolete commercial finished goods inventory (in percent) | 90% |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Finance lease right-of-use asset | $ 13 | $ 13 | $ 13 | ||
Property and equipment at cost | 3,199 | 3,199 | 3,477 | ||
Less: accumulated depreciation | (2,614) | (2,614) | (2,802) | ||
Property and equipment, net | 585 | 585 | 675 | ||
Depreciation | 43 | $ 53 | 87 | $ 100 | |
Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,111 | $ 1,111 | 1,308 | ||
Equipment | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life (in years) | 3 years | ||||
Equipment | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life (in years) | 15 years | ||||
Tooling | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 414 | $ 414 | 384 | ||
Tooling | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life (in years) | 2 years | ||||
Tooling | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life (in years) | 5 years | ||||
Vehicles | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 83 | $ 83 | 83 | ||
Useful life (in years) | 5 years | ||||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 86 | $ 86 | 86 | ||
Useful life (in years) | 5 years | ||||
Computer software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,144 | $ 1,144 | 1,194 | ||
Useful life (in years) | 3 years | ||||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 142 | $ 142 | 169 | ||
UV - Robots | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 105 | $ 105 | 105 | ||
Useful life (in years) | 5 years | ||||
Projects in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 101 | $ 101 | $ 135 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 30, 2022 |
Operating Leased Assets [Line Items] | |
Operating lease, discount rate | 7.25% |
Operating lease, weighted average remaining lease term | 4 years 10 months 24 days |
Equipment | |
Operating Leased Assets [Line Items] | |
Operating lease, borrowing rate | 15.93% |
Real Estate | |
Operating Leased Assets [Line Items] | |
Operating lease, borrowing rate | 16.96% |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Sub-lease income | $ (56) | $ (37) | $ (81) | $ (62) |
Lease cost | 83 | 141 | 215 | 284 |
Operating lease cost, net | 27 | 104 | 134 | 222 |
Sub-lease income | 0 | (68) | 0 | (136) |
Lease cost | 0 | 53 | 0 | 109 |
Restructured lease income, net | 0 | (15) | 0 | (27) |
Total lease cost, net | $ 27 | $ 89 | $ 134 | $ 195 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Operating lease right-of-use assets | $ 1,316 | $ 292 |
Operating lease liabilities | 1,313 | 351 |
Finance Leases | ||
Property and equipment | 13 | 13 |
Allowances for depreciation | (13) | (12) |
Finance lease assets, net | 0 | 1 |
Finance lease liabilities | $ 0 | $ 1 |
Leases - Schedule of Future Mat
Leases - Schedule of Future Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
July 2022 to June 2023 | $ 382 | |
July 2023 to June 2024 | 383 | |
July 2024 to June 2025 | 381 | |
July 2025 to June 2026 | 388 | |
July 2026 to June 2027 | 393 | |
Total future undiscounted lease payments | 1,927 | |
Less imputed interest | (614) | |
Total lease obligations | $ 1,313 | $ 351 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Operating cash flows from operating leases | $ 104 | $ 124 | $ 240 | $ 260 |
Operating cash flows from restructured leases | 0 | 18 | 0 | 35 |
Financing cash flows from finance leases | $ 0 | $ 1 | $ 1 | $ 2 |
Debt - Credit Facilities (Detai
Debt - Credit Facilities (Details) | Aug. 11, 2020 USD ($) creditFacility | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Apr. 20, 2021 USD ($) |
Line of Credit Facility [Line Items] | ||||
Number of debt financing facilities | creditFacility | 2 | |||
Credit line borrowings, net of loan origination fees | $ 1,981,000 | $ 2,169,000 | ||
Revolving Credit Facility | Inventory Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity on line of credit | $ 3,000,000 | $ 3,500,000 | ||
Inventory costs | 75% | |||
Inventory, net orderly liquidation value | 85% | |||
Interest rate | 5.75% | 22.10% | 22.40% | |
Monthly service fee | 1% | |||
Minimum monthly fee | $ 18,000 | |||
Credit line borrowings, net of loan origination fees | $ 1,200,000 | $ 1,200,000 | ||
Amortized net issuance costs | $ 18,000 | $ 84,000 | ||
Revolving Credit Facility | Inventory Facility | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate | 4% | |||
Debt Instrument, Base Rate, Variable | 2.29% | 0.21% | ||
Revolving Credit Facility | Receivables Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity on line of credit | $ 2,500,000 | |||
Interest rate | 2% | 8.40% | 8% | |
Monthly service fee | 1% | |||
Minimum monthly fee | $ 25,000 | |||
Percent of accounts receivable used as borrowing capacity | 90% | |||
Stated interest rate on collateral management fee | 5.90% | 5.90% | ||
Credit line borrowings, net of loan origination fees | $ 700,000 | $ 1,000,000 | ||
Amortized net issuance costs | $ 4,000 | $ 24,000 | ||
Revolving Credit Facility | Receivables Facility | Wall Street Journal, Highest Prime Rate | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Base Rate, Variable | 4.75% | 3.25% |
Debt - Streeterville Notes (Det
Debt - Streeterville Notes (Details) $ in Thousands | 1 Months Ended | |||||
Apr. 21, 2022 USD ($) creditFacility | Apr. 27, 2021 USD ($) creditFacility | Apr. 30, 2022 USD ($) | Apr. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||
Purchase price | $ 1,800 | $ 1,500 | ||||
2022 Streeterville Note | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 2,000 | |||||
Issue discount | 215 | |||||
Purchase price | 1,800 | |||||
Unamortized debt issuance costs | $ 15 | |||||
Interest rate | 8% | |||||
Maximum redemption amount | $ 225 | |||||
Right to defer mandatory redemption, number of deferrals | creditFacility | 5 | |||||
Percentage increase due to deferral of redemption option | 1.50% | |||||
Total liability, net of discount and financing fees | $ 1,800 | |||||
Unamortized issuance costs at date of issuance | 212 | |||||
Percentage increase if delisted from Nasdaq | 15% | |||||
2022 Streeterville Note | Debt Instrument, Redemption, Period One | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment premium | 5% | |||||
Debt prepayment limit, percent | 50% | |||||
2022 Streeterville Note | Debt Instrument, Redemption, Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment premium | 7.50% | |||||
2021 Streeterville Note | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 1,700 | |||||
Issue discount | 194 | |||||
Purchase price | 1,500 | |||||
Unamortized debt issuance costs | $ 15 | |||||
Interest rate | 8% | |||||
Maximum redemption amount | $ 205 | |||||
Right to defer mandatory redemption, number of deferrals | creditFacility | 3 | |||||
Percentage increase due to deferral of redemption option | 1.50% | |||||
Total liability, net of discount and financing fees | 800 | $ 1,700 | ||||
Unamortized issuance costs at date of issuance | $ 87 | $ 140 | ||||
Percentage increase if delisted from Nasdaq | 15% | |||||
2021 Streeterville Note | Debt Instrument, Redemption, Period One | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment premium | 5% | |||||
Debt prepayment limit, percent | 50% | |||||
2021 Streeterville Note | Debt Instrument, Redemption, Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment premium | 10% |
Debt - PPP Loan (Details)
Debt - PPP Loan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 17, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||||
Gain on forgiveness of PPP loan | $ 0 | $ 0 | $ 0 | $ 801 | |
Paycheck Protection Program | |||||
Debt Instrument [Line Items] | |||||
Proceeds from loan origination | $ 795 | ||||
Interest rate | 1% | ||||
Gain on forgiveness of PPP loan | $ 801 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | |||
Operating loss carry-forwards | $ 9.6 | $ 7.1 | |
Operating loss, subject to expiration | $ 37.5 | ||
U.S. Federal, State and Local tax authorities | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, operating loss carry-forwards | 125.4 | ||
Deferred tax assets, operating loss carryforwards, portion available after application of IRC Section 382 limitations | 71 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, operating loss carry-forwards | $ 77.2 |
Stockholders' Equity - June 202
Stockholders' Equity - June 2022 and December 2021 Private Placement (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Dec. 16, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Amount paid for clearing fees | $ 18 | |||||||
Offering costs paid on the issuance of common stock and warrants | $ 334 | $ 469 | $ 334 | $ 469 | ||||
Warrants issued (in shares) | 229,414 | 310,860 | ||||||
December 2021 Private Placement | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Sale of common stock (in shares) | 1,193,185 | |||||||
Sale of common stock (USD per share) | $ 3.52 | |||||||
Securities called by warrants (in shares) | 1,278,413 | 1,278,413 | 1,278,413 | |||||
Exercise price of common stock (USD per share) | $ 3.52 | $ 3.52 | $ 3.52 | |||||
Estimated proceeds from issuance of warrants | $ 4,500 | |||||||
Amount paid for placement agent commissions | $ 360 | |||||||
Amount paid related to expenses for registered direct offering and concurrent private placement | 42 | |||||||
Amount paid for clearing fees | 97 | |||||||
Offering costs paid on the issuance of common stock and warrants | 499 | |||||||
Proceeds from sale of common stock and warrants | $ 4,000 | |||||||
December 2021 Private Placement | Pre-Funded Warrants | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Securities called by warrants (in shares) | 85,228 | |||||||
Exercise price of common stock (USD per share) | $ 0.0001 | |||||||
Warrants issued (in shares) | 85,228 | |||||||
December 2021 Private Placement | Warrants | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Securities called by warrants (in shares) | 1,278,413 | |||||||
Exercise price of common stock (USD per share) | $ 3.52 | |||||||
June 2022 Private Placement | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Sale of common stock (in shares) | 1,313,462 | |||||||
Sale of common stock (USD per share) | $ 1.30 | $ 1.30 | $ 1.30 | |||||
Securities called by warrants (in shares) | 4,071,158 | 4,071,158 | 4,071,158 | |||||
Exercise price of common stock (USD per share) | $ 0.86 | $ 0.86 | $ 0.86 | |||||
Estimated proceeds from issuance of warrants | $ 3,500 | |||||||
Amount paid for placement agent commissions | $ 252 | |||||||
Amount paid related to expenses for registered direct offering and concurrent private placement | 35 | |||||||
Amount paid for clearing fees | 47 | |||||||
Offering costs paid on the issuance of common stock and warrants | 334 | |||||||
Proceeds from sale of common stock and warrants | $ 3,200 | |||||||
June 2022 Private Placement | Pre-Funded Warrants | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Securities called by warrants (in shares) | 1,378,848 | 1,378,848 | 1,378,848 | |||||
Exercise price of common stock (USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
June 2022 Private Placement | Warrants | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Securities called by warrants (in shares) | 2,692,310 | 2,692,310 | 2,692,310 | |||||
Exercise price of common stock (USD per share) | $ 1.30 | $ 1.30 | $ 1.30 |
Stockholders' Equity - June 2_2
Stockholders' Equity - June 2021 Equity Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount paid for clearing fees | $ 18 | |||||
Offering costs paid on the issuance of common stock and warrants | $ 334 | $ 469 | $ 334 | $ 469 | ||
Institutional investors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Sale of common stock (in shares) | 990,100 | |||||
Sale of common stock (USD per share) | $ 5.05 | $ 5.05 | $ 5.05 | |||
Amount paid for placement agent commissions | $ 400 | |||||
Amount paid related to expenses for registered direct offering and concurrent private placement | 51 | |||||
Offering costs paid on the issuance of common stock and warrants | $ 469 | |||||
Proceeds from sale of common stock and warrants | $ 4,500 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jan. 16, 2020 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | Jan. 15, 2020 | Mar. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 | |||||
Votes equal to the number of shares of common stock convertible | 11.07% | ||||||
Series A Convertible Preferred Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred stock, authorized (in shares) | 3,300,000 | 3,300,000 | 3,300,000 | ||||
Preferred Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock upon conversion from preferred stock (in shares) | (1,721,000) | ||||||
Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock (in shares) | 990,000 | ||||||
Issuance of common stock upon conversion from preferred stock (in shares) | 344,000 | ||||||
Convertible Debt | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Net proceeds from the conversion of convertible debt to preferred stock | $ 1.8 | ||||||
Conversion rate (USD per share) | $ 0.67 | ||||||
Issuance of common stock (in shares) | 2,709,018 | ||||||
Preferred stock, authorized (in shares) | 2,000,000 | ||||||
Common stock, par value (USD per share) | $ 0.0001 | ||||||
Convertible Debt | Preferred Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock upon conversion from preferred stock (in shares) | 1,721,023 | 111,548 | |||||
Convertible Debt | Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock upon conversion from preferred stock (in shares) | 344,205 | 22,310 | |||||
Convertible Debt | Common Stock | Fusion Park | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock issued upon preferred stock conversion (in shares) | 184,851 | ||||||
Convertible Debt | Common Stock | Brilliant Start | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock issued upon preferred stock conversion (in shares) | 159,354 |
Stockholders' Equity - June 2_3
Stockholders' Equity - June 2020 Equity Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jan. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Amount paid for clearing fees | $ 18 | ||||||
Offering costs paid on the issuance of common stock and warrants | $ 334 | $ 469 | $ 334 | $ 469 | |||
Warrants issued (in shares) | 229,414 | 310,860 | |||||
Proceeds from the exercise of warrants | $ 0 | $ 0 | $ 0 | $ 527 | |||
January 2020 Institutional Investor | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Sale of common stock (in shares) | 688,360 | ||||||
Sale of common stock (USD per share) | $ 3.3700 | ||||||
Securities called by warrants (in shares) | 688,360 | ||||||
Purchase price (USD per share) | $ 0.625 | ||||||
Investor Warrants | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Sale of common stock (in shares) | 990,100 | ||||||
Sale of common stock (USD per share) | $ 5.05 | $ 5.05 | $ 5.05 | ||||
Exercise price of common stock (USD per share) | $ 3.37 | ||||||
Amount paid for placement agent commissions | $ 400 | ||||||
Amount paid related to expenses for registered direct offering and concurrent private placement | 51 | ||||||
Offering costs paid on the issuance of common stock and warrants | $ 469 | ||||||
Proceeds from sale of common stock and warrants | $ 4,500 | ||||||
Warrants issued (in shares) | 187,734 | 269,180 | |||||
January 2020 Equity Offering | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise price of common stock (USD per share) | $ 3.59 | $ 3.67 | $ 3.59 | $ 3.67 | $ 3.59 | ||
Amount paid for placement agent commissions | $ 193 | ||||||
Amount paid related to expenses for registered direct offering and concurrent private placement | 50 | ||||||
Amount paid for clearing fees | 231 | ||||||
Offering costs paid on the issuance of common stock and warrants | $ 510 | ||||||
Proceeds from sale of common stock and warrants | $ 2,300 | ||||||
Warrants issued (in shares) | 229,414 | 310,860 | |||||
Estimated proceeds from issuance of warrants | $ 800 | ||||||
Issuance of common stock upon the exercise of warrants (in shares) | 0 | 156,446 | |||||
January 2020 Equity Offering, Private Placement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Securities called by warrants (in shares) | 48,185 | ||||||
Exercise price of common stock (USD per share) | $ 4.9940 | ||||||
Warrants issued (in shares) | 41,680 | 41,680 |
Stockholders' Equity - Outstand
Stockholders' Equity - Outstanding Warrants from the January 2020 Equity Offering (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants issued (in shares) | 229,414 | 310,860 | |||
January 2020 Equity Offering | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants issued (in shares) | 229,414 | 310,860 | |||
Exercise price of common stock (USD per share) | $ 3.67 | $ 3.59 | $ 3.67 | $ 3.59 | |
Investor Warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants issued (in shares) | 187,734 | 269,180 | |||
Sale of common stock (USD per share) | $ 5.05 | $ 5.05 | |||
Exercise price of common stock (USD per share) | $ 3.37 | ||||
January 2020 Institutional Investor | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Sale of common stock (USD per share) | 3.3700 | ||||
January 2020 Equity Offering, Private Placement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants issued (in shares) | 41,680 | 41,680 | |||
Exercise price of common stock (USD per share) | $ 4.9940 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 54 | $ 208 | $ 98 | $ 348 |
Unearned stock-based compensation | 200 | 400 | $ 200 | 400 |
Unearned compensation expected to be recognized, period | 2 years 8 months 12 days | |||
Cost of sales | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 1 | 3 | $ 2 | 5 |
Product development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 6 | 2 | 12 | 8 |
Selling, general, and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 47 | $ 203 | $ 84 | $ 335 |
Stockholders' Equity - Estimate
Stockholders' Equity - Estimates Utilized (Details) - Stock Option - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of options issued (in dollars per share) | $ 1.13 | $ 4.24 |
Exercise price (USD per share) | $ 1.43 | $ 5.48 |
Expected life of options (in years) | 6 years 1 month 6 days | 6 years 2 months 12 days |
Risk-free interest rate | 2% | 0.80% |
Expected volatility | 99.30% | 96.40% |
Dividend yield | 0% | 0% |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options and a Summary of Activity (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Number of Options | |
Outstanding at beginning of period (in shares) | shares | 267,109 |
Granted (in shares) | shares | 65,680 |
Exercised (in shares) | shares | (250) |
Canceled/forfeited (in shares) | shares | (109,122) |
Outstanding at end of period (in shares) | shares | 223,417 |
Vested and expected to vest at period end (in shares) | shares | 197,739 |
Exercisable at period end (in shares) | shares | 116,179 |
Weighted Average Exercise Price Per Share | |
Outstanding at beginning of period (USD per share) | $ / shares | $ 3.46 |
Granted (USD per share) | $ / shares | 1.43 |
Exercised (USD per share) | $ / shares | 1.45 |
Canceled/forfeited (USD per share) | $ / shares | 2.74 |
Outstanding at end of period (USD per share) | $ / shares | 3.22 |
Vested and expected to vest at period end (USD per share) | $ / shares | 3.26 |
Exercisable at period end (USD per share) | $ / shares | $ 3.38 |
Weighted Average Remaining Contractual Life (in years) | |
Outstanding at end of period | 7 years 3 months 18 days |
Vested and expected to vest at period end | 7 years |
Exercisable at period end | 5 years 9 months 18 days |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Weighted Average Remaining Contractual Life (in years) | |
Outstanding at end of period | 7 years 3 months 18 days |
Restricted Stock Units | |
Restricted Stock Units | |
Outstanding at beginning of period (in shares) | shares | 2,400 |
Granted (in shares) | shares | 40,000 |
Vested (in shares) | shares | (40,000) |
Outstanding at end of period (in shares) | shares | 2,400 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of period (USD per share) | $ / shares | $ 7.14 |
Granted (USD per share) | $ / shares | 1.40 |
Vested (USD per share) | $ / shares | 1.40 |
Outstanding at end of period (USD per share) | $ / shares | $ 7.14 |
Weighted Average Remaining Contractual Life (in years) | |
Outstanding at end of period | 8 years 2 months 12 days |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding purchase commitments | $ 0.8 |
Other Income (Details)
Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Apr. 17, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | |||||||
ERTC refund | $ 431 | ||||||
ERTC expected receivable | $ 445 | $ 445 | $ 445 | $ 445 | |||
Gain on forgiveness of PPP loan | $ 0 | $ 0 | $ 0 | $ 801 | |||
Paycheck Protection Program | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from loan origination | $ 795 | ||||||
Interest rate | 1% | ||||||
Gain on forgiveness of PPP loan | $ 801 |