Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 28, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'MELA | ' | ' |
Entity Registrant Name | 'MELA SCIENCES, INC. /NY | ' | ' |
Entity Central Index Key | '0001051514 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 47,755,791 | ' |
Entity Public Float | ' | ' | $39,730,954 |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $3,783 | $7,862 |
Accounts receivable (net of allowance of $46 and $0 as of December 31, 2013 and 2012, respectively) | 57 | 180 |
Inventory (net of reserve $325 and $0 as of December 31, 2013 and 2012, respectively) (See Note 4) | 5,631 | 676 |
Prepaid expenses and other current assets | 880 | 965 |
Total Current Assets | 10,351 | 9,683 |
Property and equipment, net (See Note 5) | 3,691 | 7,350 |
Patents and trademarks, net | 42 | 47 |
Deferred financing costs | ' | 106 |
Other assets | 48 | 84 |
Total Assets | 14,132 | 17,270 |
Current Liabilities: | ' | ' |
Accounts payable (includes related parties of $33 and $60 as of December 31, 2013 and 2012, respectively) | 1,479 | 1,850 |
Accrued expenses (includes related parties of $48 and $0 as of December 31, 2013 and 2012, respectively) | 844 | 956 |
Deferred placement revenue | 244 | 172 |
Warrant liability (See Note 10) | 3,017 | ' |
Other current liabilities | 68 | 41 |
Total Current Liabilities | 5,652 | 3,019 |
Long Term Liabilities: | ' | ' |
Deferred placement revenue | 64 | 132 |
Deferred rent | 120 | 144 |
Total Long Term Liabilities | 184 | 276 |
Total Liabilities | 5,836 | 3,295 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
Stockholders' Equity: | ' | ' |
Preferred stock-$0.10 par value; authorized 10,000,000 shares: issued and outstanding: none | ' | ' |
Common stock-$0.001 par value; authorized 95,000,000 shares: Issued and outstanding 47,501,596 and 32,204,720 shares at December 31, 2013 and 2012, respectively. | 48 | 32 |
Additional paid-in capital | 176,396 | 156,143 |
Accumulated deficit | -168,148 | -142,200 |
Total Stockholders' Equity | 8,296 | 13,975 |
Total Liabilities and Stockholders' Equity | $14,132 | $17,270 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for accounts receivable, current | $46 | $0 |
Inventory, net of reserves | 325 | 0 |
Accounts payable, related parties | 33 | 60 |
Accrued expenses, related parties | $48 | $0 |
Preferred stock, par value | $0.10 | $0.10 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 47,501,596 | 32,204,720 |
Common stock, shares outstanding | 47,501,596 | 32,204,720 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | ' | ' |
Net revenues | $536 | $278 |
Cost of revenue | 4,341 | 2,042 |
Gross profit | -3,805 | -1,764 |
Operating expenses: | ' | ' |
Research and development | 3,782 | 6,792 |
Selling, general and administrative | 15,536 | 14,169 |
Impairment of long-lived assets | 1,011 | ' |
Total operating expenses | 20,329 | 20,961 |
Operating loss | -24,134 | -22,725 |
Other income (expenses): | ' | ' |
Interest income | 8 | 32 |
Interest expense | -564 | ' |
Change in fair value of warrant liability | -296 | ' |
Write-off of unamortized loan costs | -983 | ' |
Other income, net | 21 | 20 |
Non operating income and expense | -1,814 | 52 |
Net loss | ($25,948) | ($22,673) |
Basic and diluted net loss per common share | ($0.60) | ($0.74) |
Basic and diluted weighted average number of common shares outstanding | 42,894,500 | 30,762,610 |
Statement_of_Stockholders_Equi
Statement of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data | ||||
Beginning Balance at Dec. 31, 2011 | $29,807 | $30 | $149,304 | ($119,527) |
Beginning Balance, Shares at Dec. 31, 2011 | ' | 30,308,000 | ' | ' |
Cashless exercise of options | ' | ' | ' | ' |
Cashless exercise of options, Shares | ' | 12,000 | ' | ' |
Exercise of options | 45 | ' | 45 | ' |
Exercise of options, Shares | 61,796 | 21,000 | ' | ' |
Issuance of shares of common stock in connection with Public Offering (net of issuance costs) | 5,308 | 2 | 5,306 | ' |
Issuance of shares of common stock in connection with Public Offering (net of issuance costs), Shares | ' | 1,864,000 | ' | ' |
Share-based compensation expense | 1,488 | ' | 1,488 | ' |
Net loss | -22,673 | ' | ' | -22,673 |
Ending Balance at Dec. 31, 2012 | 13,975 | 32 | 156,143 | -142,200 |
Ending Balance, Shares at Dec. 31, 2012 | 32,204,720 | 32,205,000 | ' | ' |
Exercise of options | 18 | ' | 18 | ' |
Exercise of options, Shares | 18,059 | 18,000 | ' | ' |
Issuance of shares of common stock in connection with Public Offering (net of issuance costs) | 15,725 | 11 | 15,714 | ' |
Issuance of shares of common stock in connection with Public Offering (net of issuance costs), Shares | ' | 10,814,000 | ' | ' |
Issuance of shares of common stock and warrants in connection with 2013 Direct Placement (net of issuance costs), Amount | 2,573 | 4 | 2,569 | ' |
Issuance of shares of common stock and warrants in connection with 2013 Direct Placement (net of issuance costs), Shares | ' | 4,228,000 | ' | ' |
Warrants issued in connection with loans payable | 652,000 | ' | 652,000 | ' |
Share-based compensation expense | 1,301 | 1 | 1,300 | ' |
Share-based compensation expense, Shares | ' | 237,000 | ' | ' |
Net loss | -25,948 | ' | ' | -25,948 |
Ending Balance at Dec. 31, 2013 | $8,296 | $48 | $176,396 | ($168,148) |
Ending Balance, Shares at Dec. 31, 2013 | 47,501,596 | 47,502,000 | ' | ' |
Statement_of_Stockholders_Equi1
Statement of Stockholders' Equity (Parenthetical) (Common Stock [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock [Member] | ' | ' |
Issuance costs of common stock in connection with Public Offering | $1,025 | $282 |
Issuance costs of common stock and warrants | $3,426 | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($25,948) | ($22,673) |
Adjustments to reconcile net loss: | ' | ' |
Write-off of unamortized loan costs | 983 | ' |
Depreciation and amortization | 2,439 | 970 |
Impairment of long-lived assets | 1,011 | ' |
Bad debt expense | 46 | ' |
Write-off of unamortized financing costs | 41 | 62 |
Stock-based compensation | 1,301 | 1,488 |
Amortization of deferred financing costs | 250 | ' |
Change in fair value of warrant liability | 296 | ' |
Inventory reserve | 325 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 77 | -180 |
Inventory | 121 | -676 |
Prepaid expenses and other current assets | 86 | 96 |
Other assets | 36 | -20 |
Accounts payable and accrued expenses | -484 | 1,390 |
Other current liabilities | 27 | 10 |
Deferred rent | -24 | 6 |
Deferred revenue | 4 | 303 |
Net cash used in operating activities | -19,413 | -19,224 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -5,188 | -6,158 |
Net cash used in investing activities | -5,188 | -6,158 |
Cash flows from financing activities: | ' | ' |
Net proceeds from private placements/public offerings | 21,174 | 5,202 |
Net proceeds from long term debt | 5,755 | ' |
Repayment of long term debt | -6,425 | ' |
Proceeds from exercise of stock options | 18 | 45 |
Net cash provided by financing activities | 20,522 | 5,247 |
Net decrease in cash and cash equivalents | -4,079 | -20,135 |
Cash and cash equivalents at beginning of period | 7,862 | 27,997 |
Cash and cash equivalents at end of period | 3,783 | 7,862 |
Supplemental Schedule of Noncash Investing and Financing Activities: | ' | ' |
Non-cash interest expense | ' | 41 |
Reclassification of MelaFindB. components from other assets to property and equipment | ' | 522 |
Reclassification of warrant liability to stockholders equity | 652 | ' |
Reclassification of MelaFindB. components from property and equipment to inventory | $5,402 | ' |
Company
Company | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Company | ' | |||
1. Company | ||||
MELA Sciences, Inc., a Delaware corporation (the “Company”), is a medical device company focused on the commercialization of our flagship product, MelaFind ® , the further design and development of MelaFind ® and our technology. MelaFind ® is a non-invasive, point-of-care (in the doctor’s office) instrument to aid in the detection of melanoma. MelaFind ® features a hand-held component that emits light of multiple wavelengths to capture digital data from clinically atypical pigmented skin lesions. The data are then analyzed utilizing sophisticated classification algorithms that were ‘trained’ on our proprietary database of melanomas and benign lesions. This then provides information to assist in the management of the patient’s disease, including information useful in the decision of whether to biopsy the lesion. | ||||
The components of the MelaFind® system include: | ||||
• | a hand-held component, which employs high precision optics and multi-spectral illumination (multiple colors of light including near infra-red); | |||
• | a proprietary database of pigmented skin lesions, believed to be the largest positive prospective database to date in the U.S.; and | |||
• | lesion classifiers, which are sophisticated mathematical algorithms that extract lesion feature information and classify lesions. | |||
In November 2011, the Company received written approval from the U.S. Food and Drug Administration (“FDA”) for the MelaFind ® Pre-Market Approval (“PMA”) application and in September 2011 received Conformite Europeenne (“CE”) Mark approval for MelaFind ®. On March 7, 2012, the Company installed the first commercial MelaFind ® systems, and proceeded with the commercial launch of MelaFind ®. We are currently conducting a Post-Approval Study (“PAS”) evaluating the sensitivity and false positive rate of physicians after using MelaFind®. | ||||
In 2012 the Company evolved from a research and development company to a commercial enterprise. The launch of MelaFind® in 2012, and the subsequent commercialization activities following the launch did not meet the Company’s initial goals and objectives. Revenues were lower than forecasted and expenses continued to increase throughout 2012 and into 2013. Our cash used in operating activities for the year ended December 31, 2013 and December 31, 2012 totaled $19,413 and $19,224, respectively, and net revenues totaled $536 and $278, respectively. | ||||
In mid 2013, a significant cost reduction program was put into place (see Note 16). On November 11, 2013, a new CEO was brought on board and a newly refocused “Go-to-Market” strategy focusing on key institutions, opinion leaders and dermatologists who treat many of the patients at high risk for melanoma was adopted. As part of this strategy, in late December, we elected to change our business model from a rental to a sale model for the MelaFind® device. The Company has reduced its costs, brought new and experienced talent to its management team and has reconsidered the approach to the commercialization of the MelaFind® device. The Company has also begun the process of obtaining a coverage determination from the Centers for Medicare & Medicaid Services, the federal agency that administers Medicare, in order to obtain reimbursement by Medicare for use of the MelaFind® device. The Company anticipates that this process could take up to two years. Once a coverage determination has been made, the Company plans to seek reimbursement by Medicaid, Medicare and other third-party payers. | ||||
On August 22, 2013, the Company received a notice from The NASDAQ Stock Market that, for the previous 30 consecutive business days, the Company was not in compliance with a Nasdaq rule for continued listing that requires a listed company’s common stock to maintain a minimum bid price of $1.00 per share. The Company was granted an automatic 180 grace period by NASDAQ in which to regain compliance. On February 19, 2014, we were notified by NASDAQ that the Company was eligible for an additional 180 day grace period and has until August 18, 2014 to regain compliance with NASDAQ’s minimum bid price requirement. | ||||
On October 17, 2013, the FDA sent the Company a letter stating the information in the August 8, 2013 progress report with respect to the PAS was inadequate to allow the agency to complete its review and therefore the FDA asked for additional information. Because of rate of accrual issues, the FDA’s letter informed the Company that its study status was revised on the FDA’s website to “Progress Inadequate.” On September 9, 2013, the Company placed this study on hold to investigate enrollment. On November 15, 2013, the Company responded to the FDA’s letter, outlining an enrollment plan as well as a new enrollment schedule. On January 2, 2014, the FDA prompted an interactive review process to obtain further additional information regarding the Company’s response. On January 13, 2014, the Company’s enrollment plan and enrollment schedule was approved by the FDA and the interactive review process was closed as the FDA deemed the Company has sufficiently met the reporting expectations of the report. The Company’s new study timeline was approved for study restart in January 2014, steps to restart the study have been initiated. The FDA noted in their January 13, 2014 email that the status would remain as “Progress Inadequate” and that the status would be reassessed upon review of the next interim report date, February 8, 2014, based on the newly approved January 2014 restart timeline. As of the Company’s February 24, 2014 teleconference with the FDA, they noted that they have not had time to read our February 8, 2014 report and therefore the status has not been reviewed. |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
2. Basis of Presentation | |
The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. | |
Liquidity and Going Concern | |
The Company has experienced recurring losses and negative cash flow from operations and management expects these conditions to continue for the foreseeable future. As the result of these factors, the Company has been and continues to be dependent on raising capital from the sale of securities in order to continue to operate and to meet its obligations in the ordinary course of business. Management recently put in place a cost reduction program that included staff reductions, the elimination or deferral of all nonessential projects and activities and the scaling back or discontinuance of general corporate activities (referred to as “Cost Reduction Plan”) to preserve liquidity. In addition, as discussed below, in October 2013 the Company raised net proceeds of approximately $5,500 from the sale of common stock and warrants to strengthen the Company’s financial position, and in February 2014 the Company raised net proceeds of approximately $11,500 from the sale of convertible preferred stock, common stock and warrants (see Note 17). | |
The Company continues to incur net losses. These net losses and the $6,400 payment to Hercules made in September have had a significant negative impact on the Company’s working capital and financial position and may impact its future ability to meet its obligations in the ordinary course of business. As a result, management believes that, even with cash and cash equivalents held at December 31, 2013, together with the net proceeds from the February 2014 financing and estimated revenue, there is significant doubt about our ability to continue as a going concern. The Company continues to assess the effects of its previously announced Cost Reduction Plan and is prepared to reduce various operational costs. Although the Company has no specific arrangements or plans, the Company will need additional capital during the next 12 months, which may take the form of equity or debt, on either a loan or convertible basis. However, under the terms of the securities purchase agreement entered into in connection with its February 2014 financing, the Company is prohibited from issuing (or entering into any agreement to issue) any equity securities in connection with a financing until the later of July 31, 2014 or 2 months after the effectiveness of the re-sale registration statement the Company is required to file in connection with that financing. | |
The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America (GAAP) applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. In addition, as of December 31, 2013, the Company had an accumulated deficit of $168,148, had incurred a net loss for the year ended December 31, 2013 of $25,948 and had positive working capital of $4,699. Funding has been provided by related parties as well as new investors committed to make it possible to maintain, expand, and ensure the advancement of the MelaFind® product. | |
The Company expects expenses will increase in connection with its continued commercialization and development activities related to MelaFind®. Having commenced commercialization in March 2012, the Company expects to incur additional medical, marketing and sales expenses in the near future and to incur additional contract manufacturing and inventory expenses in the future which will require additional funding. Furthermore, having recently commenced a refocused marketing strategy focusing on key institutions, opinion leaders and dermatologists who treat many of the patients at high risk for melanoma, the Company expects to incur additional expenses continuing to transition its operations and implement its new refocused marketing strategy. As a result, the Company expects to continue to incur significant and increasing operating losses for the foreseeable future and cannot determine at this time when it will generate any significant revenues. As of December 31, 2013, the Company’s total of cash and cash equivalents was approximately $3,783. Subsequent to year end, the Company raised approximately $12,300 in gross proceeds from a private placement of the Company’s convertible preferred stock and warrants to purchase shares of its common stock. In the first quarter of 2014, the Company paid a total of $2,460, and may be required to pay an additional $1,476, in liquidated damages to the investors in this private placement as a result of its failure to file and have declared effective a registration statement in accordance with the time periods set forth in a registration rights agreement between the Company and the investors. | |
Should the Company experience unforeseen expenses, or if anticipated revenues are not realized, the effect could have a further negative impact on management’s estimated operating results over the next twelve months. If existing cash is insufficient to satisfy the Company’s liquidity requirements, or if it develops additional products, the Company may seek to sell additional equity or debt securities or obtain a credit facility, which will be even more difficult due to the current tightness in the credit markets. If additional funds are raised through the issuance of debt securities, these securities would have rights senior to those associated with the Company’s common stock and could contain covenants that would restrict the Company’s operations. Any additional financing may not be available in amounts or on terms acceptable to the Company, or at all. If the Company is unable to obtain any additional financing, it may be required to reduce the scope of, delay or eliminate some or all of planned product research development and commercialization activities, which could harm its business. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
3. Summary of Significant Accounting Policies | |||||||||
Concentration of Credit Risk | |||||||||
The Company performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for uncollectible accounts receivable based upon the expected collectability of all accounts receivable. | |||||||||
Cash and cash equivalents | |||||||||
Cash equivalents primarily represent funds invested in money market funds, bank certificates of deposit and U.S. government debt securities with an original maturity of three months or less at the date of acquisition. | |||||||||
At year end, the Company has maintained bank balances in excess of insurance limits established by the Federal Deposit Insurance Corporation. The Company has not experienced any losses with respect to cash. Management believes the Company is not exposed to any significant credit risk with respect to its cash and cash equivalents. | |||||||||
Use of Estimates | |||||||||
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. | |||||||||
Allowance for Doubtful Accounts | |||||||||
The Company establishes an allowance for uncollectible trade accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability of outstanding balances. These provisions are established when the aging of outstanding amounts exceeds allowable terms and are re-evaluated at each quarter end for adequacy. In determining the adequacy of the provision, the Company considers known uncollectible or at risk receivables. | |||||||||
Inventories | |||||||||
Inventories consist of finished products that are stated at the lower of cost (first-in, first-out) or market value. As of December 31, 2013 the reserve for obsolete inventory totaled $325. The Company reserved for specific inventory items that are no longer being used in the devices. | |||||||||
In mid 2013, a significant cost reduction program was put into place. On November 11, 2013, a new CEO was brought on board and a newly refocused “Go-to-Market” strategy focusing on key institutions, opinion leaders and dermatologists who treat many of the patients at high risk for melanoma was adopted. As part of this strategy, in late December, we elected to change our business model from a rental to a sale model for the MelaFind® device. In accordance with this new sales model, the Company has reclassed approximately $5,402 of MelaFind® devices from property and equipment into inventory. | |||||||||
Business Segments | |||||||||
The Company’s operations are confined to one business segment: the design, development and commercialization of MelaFind®. | |||||||||
Revenue recognition | |||||||||
The Company considers revenue to be earned when all of the following criteria are met: persuasive evidence a sales arrangement exists; delivery has occurred or services have been rendered; the price is fixed or determinable; and collectability is reasonably assured. The Company’s agreements with dermatologists regarding the MelaFind ® system combine the elements noted above with a future service obligation. While the Company was required to place the MelaFind ® systems with dermatologists for their exclusive use, under the Company’s previous rental model with respect to MelaFind® placements, ownership of the MelaFind ® systems remains with the Company. In December 2013, the Company changed its business model from a rental and usage model, to a sales model for our MelaFind ® product. Therefore, the Company will recognize revenues for product sales when title and risk of loss transfers to customers, which is after installation and training on the MelaFind® system, and when reliable estimates of sales allowances and warranties can be made and collectability is reasonably assured. The Company will regularly review the information related to these estimates and adjust the reserves accordingly. | |||||||||
During 2013, the Company generated revenue from either usage based on the number of patient sessions, or lesions examined, or a fixed monthly fee. Electronic record cards activate the MelaFind ® system, capture data and store the data initial installation fee for each MelaFind ® system which covers training, delivery, initial supplies, maintenance and the right to use MelaFind®. In accordance with the accounting guidance regarding multiple-element arrangements, the Company allocates total contract consideration to each element based upon the relative standalone selling prices of each element, and recognizes the associated revenue for each element as delivery occurs or over the related service period, generally expected to be two years. Revenues associated with undelivered elements are deferred until delivery occurs or services are rendered. The significant judgments we make relate to allocation of the contract consideration to each element whereby changes in standalone selling price could impact the amount of revenue recognized in a specific period and estimates of uncollectible accounts receivables. | |||||||||
In Germany, the typical contract with dermatologists calls for an installation or fixed monthly fee. Additionally, the Company typically charges a per patient usage charge. Revenue generated from German contracts is recognized when earned. | |||||||||
Cost of Revenue | |||||||||
Costs of revenue are associated with: the placement of the MelaFind® system in the doctor’s office, the cost of consumables delivered at installation, the cost of the electronic record cards, technical support costs and depreciation expense of the MelaFind ® system placed with the customer which, under the Company’s previous rental model with respect to MelaFind® placements, remains the property of the Company. Certain product quality and manufacturing overhead costs associated with supporting the contract manufacturers of MelaFind ® are allocated to costs of revenue. | |||||||||
Property and Equipment | |||||||||
For the year ended December 31, 2013 and 2012, the Company capitalized approximately $5,188 and $6,158, respectively of MelaFind ® system costs. Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets (generally three to five years). Costs incurred for maintenance and repairs are expensed as incurred and expenditures for major replacements and improvements are capitalized and depreciated over their estimated remaining useful lives. Depreciation expense for the years ended December 31, 2013 and 2012 was $2,434 and $957, respectively. | |||||||||
Patents and Trademarks, Net | |||||||||
The Company capitalizes the costs of obtaining its patents and registration of Trademarks. Such costs are accumulated and capitalized during the filing periods, which can take several years to complete. Successful applications that result in the granting of a patent or trademark are then amortized over 15 years on a straight-line basis. Unsuccessful applications are written off and expensed in the fiscal period where the application is abandoned or discontinued. | |||||||||
Deferred Financing Costs | |||||||||
Financing costs incurred in connection with the Hercules Technology Growth Capital, Inc. (“Hercules”) note payable were deferred and are being amortized over the term of the note using the effective interest rate method. These financing costs were written off when the loan was repaid in September 2013. As of December 31, 2013 and 2012 the Company recorded deferred financing costs of $0 and $106, respectively, in other assets in the accompanying balance sheets. | |||||||||
Deferred Revenue and Prepaid Expenses | |||||||||
Deferred placement revenue relates primarily to rental placement fees and product sales or services paid but not delivered at period end. The Company has certain customer arrangements providing for multiple years content services. To the extent deferred services are to be provided beyond twelve months they are treated as long-term. Prepaid expenses are recorded at amounts paid to suppliers or others. Amounts recorded are evaluated for impairment each reporting period. | |||||||||
Long-lived Assets | |||||||||
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered to be impaired when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition exceeds its carrying amount. The amount of impairment loss, if any, is measured as the difference between the net book value of the asset and its estimated fair value. (See Note 5) | |||||||||
Research and Development | |||||||||
Expenditures for research and development are expensed as incurred. | |||||||||
Accrued Expenses | |||||||||
As part of the process of preparing financial statements, we are required to estimate accrued expenses. This process involves identifying services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for such service where we have not been invoiced or otherwise notified of the actual cost. Examples of estimated accrued expenses include: | |||||||||
• | professional service fees; | ||||||||
• | contract clinical and regulatory related service fees; | ||||||||
• | fees paid to contract manufacturers in conjunction with the production of MelaFind® components or materials; and | ||||||||
• | fees paid to third party data collection organizations and investigators in conjunction with the clinical trials and FDA and other regulatory review. | ||||||||
In connection with such service fees, our estimates are most affected by our projections of the timing of services provided relative to the actual level of services provided by such service providers. The majority of our service providers invoice us monthly in arrears for services performed. In the event that we do not identify certain costs that have begun to be incurred or we under or overestimate the level of services performed or the costs of such services, our actual expenses could differ from such estimates. The date on which certain services commence, the level of services performed on or before a given date, and the cost of such services are often subjective determinations. We make these judgments based upon the facts and circumstances known to us and accrue for such costs in accordance with accounting principles generally accepted in the U.S. This is done as of each balance sheet date in our financial statements. | |||||||||
Deferred Rent | |||||||||
Operating lease agreements which contain provisions for future rent increases or periods in which rent payments are reduced or abated are recorded in monthly rent expense in the amount of the total payments over the lease term divided by the number of months of the lease term. The difference between rent expense recorded and the amount paid is credited or charged to deferred rent which is reflected on the accompanying balance sheet. | |||||||||
Stock-Based Compensation | |||||||||
We record compensation expense associated with stock options, restricted stock awards and other forms of equity compensation in accordance with FASB ASC 718, Compensation-Stock Compensation. The fair value of an equity award is determined at the date of grant using the Black-Scholes Model and the fair value of the equity award is expensed over the service period. The most significant inputs used to value an equity award include current stock price, the amount the employee must pay to acquire the equity award, volatility rate, interest rate and estimated term. For equity awards that vest upon achieving a defined milestone, the underlying compensation charge is recorded, when it is probable that the milestone will be achieved. It is then amortized over the estimated period to satisfy vesting requirements. The probability of vesting is updated at each reporting period and compensation is adjusted accordingly. The significant judgments relate to the assumptions used in the valuation model to determine the fair value of the equity instrument including the volatility rate, term and interest rate. Any increases (decreases) in either of the volatility rate, the term or the interest rate would increase (decrease) the value of the equity instrument and the corresponding compensation expense recognized each period. Estimates of performance based awards vesting can also have a significant impact on recognized stock compensation as the likelihood of a performance based award vesting can change from period-to-period with changes in estimates included in current period operations. | |||||||||
Stock-based compensation to non-employee consultants is granted for services rendered and is completely vested on the grant date. The fair value of the award is determined on the date of grant using the Black-Sholes Model and the fair value is expensed in current period operations. | |||||||||
Income Tax Expense Estimates and Policies | |||||||||
The Company accounts for income taxes using the asset and liability method for deferred income taxes. | |||||||||
The provision for income taxes includes federal, state and local income taxes currently payable and deferred taxes resulting from temporary differences between the financial statement and tax bases of assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more-likely-than-not that a tax benefit will not be realized. | |||||||||
With respect to uncertain tax positions, the Company would recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits to be recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company currently has no uncertain tax positions. | |||||||||
The Company does not have any unrecognized tax benefits which would favorably affect the effective tax rate if recognized in future periods, or accrued penalties and interest. If such matters were to arise, the Company would recognize interest and penalties related to income tax matters in income tax expense. The earliest open tax year subject to examination is 2009. | |||||||||
Net Loss Per Common Share | |||||||||
Basic net loss per common share excludes dilution for potentially dilutive securities and is computed by dividing loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share gives effect to dilutive options, warrants and other potential common shares outstanding during the period. Diluted net loss per common share is equal to the basic net loss per common share since all potentially dilutive securities are anti-dilutive for each of the periods presented. Potential common stock equivalents outstanding as of December 31, 2013 and 2012 consist of stock options, warrants and restricted stock awards which are summarized as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Common stock options | 3,065,714 | 2,426,533 | |||||||
Warrants | 12,093,591 | 200,000 | |||||||
Restricted Stock Awards | 99,375 | — | |||||||
Total | 15,258,680 | 2,626,533 | |||||||
Comprehensive loss | |||||||||
For all periods presented, the Company had no comprehensive income items and accordingly there is no difference between the reported net loss and per share amounts per the Statements of Operations and comprehensive net loss and related per share amounts. | |||||||||
Litigation | |||||||||
From time to time, the Company may become involved in litigation and other legal actions. The Company estimates the range of liability related to any pending litigation where the amount and range of loss can be estimated. The Company records its best estimate of a loss when the loss is considered probable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and (ii) the range of loss can be reasonably estimated. Through the date of these financial statements, the Company is currently not involved in litigation or other legal actions. | |||||||||
Fair Value Measurements | |||||||||
The Company has adopted the provisions of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” as of January 1, 2008 for financial instruments. This standard defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. | |||||||||
Warrant Liability | |||||||||
The Company accounts for the 6,857,142 common stock warrants issued in connection with the October 31, 2013 financing in accordance with the guidance contained in ASC 815-40-15-7D, “Contracts in Entity’s Own Equity” whereby under that provision they do not meet the criteria for equity treatment and must be recorded as a liability. Accordingly, the Company classifies the warrant instrument as a liability at its fair value and adjusts the instrument to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s statements of operations. The fair value of warrants issued by the Company in connection the transaction has been estimated using a Black-Scholes valuation. | |||||||||
Recently Issued Accounting Standards | |||||||||
The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued pronouncements and concluded that there are no recently issued accounting pronouncements that the Company has yet to adopt that are expected to have a material effect on the Company’s financial position, results of operations or cash flows. | |||||||||
Management’s Evaluation of Subsequent Events | |||||||||
Management evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, management did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial statements (See Note 17). | |||||||||
Foreign Exchange | |||||||||
The Company’s operations in Germany use the U.S. dollar as its functional currency and from time to time conducts business in Euros. For all periods presented, aggregate foreign exchange transaction gains and losses were not material. |
Inventory
Inventory | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
4. Inventory | |||||||||
Inventory consists of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
MelaFind® Systems | $ | 5,402 | $ | — | |||||
Mela record cards | 328 | 333 | |||||||
Accessories | 226 | 343 | |||||||
5,956 | 676 | ||||||||
Reserve for obsolete inventory | (325 | ) | — | ||||||
$ | 5,631 | $ | 676 | ||||||
At December 31, 2013, under the Company’s new sales model, approximately $5,402 of MelaFind ® systems have been reclassified from property and equipment into inventory. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||||||
Property and Equipment | ' | ||||||||||||||||
5. Property and Equipment | |||||||||||||||||
Property and equipment, at cost, consists of the following: | |||||||||||||||||
December 31, | Estimated | ||||||||||||||||
2013 | 2012 | Useful Life | Useful Life | ||||||||||||||
Leasehold improvements | $ | 906 | $ | 906 | Lease Term | Lease Term | |||||||||||
Laboratory and research equipment | 1,084 | 1,084 | 3-5 years | 3-5 years | |||||||||||||
Office furniture and equipment | 2,023 | 2,023 | 3-5 years | 3-5 years | |||||||||||||
MelaFind® Systems | 5,081 | 6,306 | 3 years | 3 years | |||||||||||||
9,094 | 10,319 | ||||||||||||||||
Accumulated depreciation and amortization | (5,403 | ) | (2,969 | ) | |||||||||||||
$ | 3,691 | $ | 7,350 | ||||||||||||||
Depreciation expense amounted to approximately $2,434 and $957 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||
For the year ended December 31, 2013, the Company’s marketing shifted focus to large cancer centers and high risk patients, and the Company took an impairment charge of approximately $1,011 against its MelaFind ® systems previously placed in locations that do not fit this profile. However, as these user agreements expire over the next 2 years, we anticipate that the affected systems will be redeployed in some capacity. Under the Company’s new sales model, approximately $5,402 has been reclassified into inventory. |
Patents_and_trademarks
Patents and trademarks | 12 Months Ended |
Dec. 31, 2013 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Patents and trademarks | ' |
6. Patents and trademarks | |
Patents and trademarks as shown in the accompanying balance sheets are net of accumulated amortization of $232 and $227 at December 31, 2013 and 2012, respectively. Amortization expense related to all patents was approximately $5 and $12 for the years ended December 31, 2013 and 2012, respectively. Amortization expense of currently held patents is expected to amount to $5 for each of the years ending December 31, 2014 through 2018, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
7. Commitments and Contingencies | |||||
The Company is obligated under a non-cancelable operating lease for office, lab, and manufacturing space expiring December 2016. The lease is subject to escalations for increases in operating expenses. For the years ended December 31, the approximate aggregate minimum future payments due under this lease are as follows: | |||||
2014 | $ | 478 | |||
2015 | 478 | ||||
2016 | 477 | ||||
TOTAL | $ | 1,433 | |||
Rent expense charged to operations amounted to approximately $509 and $483 for the years ended December 31, 2013 and 2012, respectively. | |||||
From time to time, we may be a party to certain legal proceedings, incidental to the normal course of our business. These may include controversies relating to contract claims and employment related matters, some of which claims may be material in which case we will make separate disclosure as required. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
8. Employee Benefit Plan | |
The Company had a SIMPLE IRA defined contribution plan covering all qualified employees. An officer of the Company served as trustee of the plan. The Company provided a matching contribution of up to 3% of each employee’s salary. Company contributions to this plan amounted to approximately $136 and $151 for the years ended December 31, 2013 and 2012, respectively. On December 31, 2013 the Company ceased contributions and terminated the plan. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
9. Debt | |
On March 15, 2013, the Company executed loan documents with Hercules Technology Growth Capital Inc., a venture capital lender, whereby the Company borrowed $6,000 (“Loan”). The Loan accrued interest at a rate of 10.45%. The term of the Loan was 42 months with interest payments only during the first 12 months. On September 10, 2013, the Company elected to prepay the Loan and paid Hercules approximately $6,400, including the end of term fee of $425, to settle all obligations to Hercules. Hercules agreed to waive the prepayment penalty that was defined in the loan documents. | |
Upon executing the loan documents on March 15, 2013 the Company became obligated to issue to the Lender a warrant to purchase shares of the Company’s common stock upon approval by the Company’s stockholders of a proposal to increase the Company’s number of authorized shares of common stock at its 2013 Annual Meeting of Stockholders. The number of shares that could be acquired upon exercise of the warrant and the exercise price per share, were not fixed on March 15, 2013 but would be determined when the warrant was issued based on a defined formula using trading prices of the Company’s common stock during certain periods prior to the issuance of the warrant. The Company’s stockholders approved the increase in the number of authorized shares of common stock on April 25, 2013 and on April 26, 2013 the warrant was issued to the Lender. The terms of the warrant were fixed on the date of issuance whereby the Lender received a warrant to purchase 693,202 shares of common stock at an exercise price of approximately $1.12 per share (“Warrant”). The Warrant expires on April 26, 2018. | |
For financial reporting purposes, the $6,000 funded by the Lender on March 15, 2013 was allocated first to the fair value of our obligation to issue the warrant (“Warrant Obligation”) that totaled approximately $563 and the balance was reduced further by the Lender’s costs and fees (“Costs”), resulting in an initial carrying value of the loan of approximately $5,300. The Company used a Level 3 fair value measurement to determine fair value of the Warrant Obligation, which has significant unobservable inputs as defined in Accounting Standards Codification 820 “Fair Value Measures”. During the period from the loan inception date until the Warrant Obligation was fulfilled and the Warrant was issued, the Warrant Obligation was reflected as a long-term liability at fair value. Changes in the fair value (“mark-to-market adjustments”) of the Warrant Obligation of approximately $90 are included in operating results. The fair value of the Warrant Obligation was determined using the Monte Carlo pricing model that used various assumptions that included: stock prices ranging from $1.16 to $1.18 per share, volatility of 77%, time to maturity of 5 years, exercise prices ranging from $1.15 to $1.16 and a risk free interest rate of return of .84%. Due to the nature of the Monte Carlo model, a 10% change in the underlying unobservable inputs would not have a significant impact on the fair value. | |
The value of the Warrant Obligation combined with the Costs resulted in an initial loan discount of approximately $727. The terms of the Loan required us to pay the Lender a fee of $425 at the maturity of the Loan (referred to as “Fee”). The loan discount and the Fee were being amortized as additional interest expense over the life of the loan using the interest method. As discussed above, prior to the terms of the warrant being fixed on April 26, 2013, the Warrant Obligation fell within the scope of Accounting Standards Codification 815 “Derivatives and Hedging” (“ASC 815”) and therefore the Warrant Obligation was accounted for as a derivative reflected as a long-term liability until the Warrant was issued on April 26, 2013. The terms of the Warrant upon issuance no longer required derivative accounting under ASC 815 and therefore the fair value of the Warrant was classified within stockholders equity. | |
As the result of us electing to prepay the loan on September 10, 2013, the unamortized loan discount, fee and deferred financing costs that were expensed were approximately $983. |
Recurring_Fair_Value_Measureme
Recurring Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Recurring Fair Value Measurements | ' | ||||||||||||||||
10. Recurring Fair Value Measurements | |||||||||||||||||
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value for applicable assets and liabilities, we consider the principal or most advantageous market in which we would transact and we consider assumptions market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. This guidance also establishes a fair value hierarchy to prioritize inputs used in measuring fair value as follows: | |||||||||||||||||
• | Level 1: Observable inputs such as quoted prices in active markets; | ||||||||||||||||
• | Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and | ||||||||||||||||
• | Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||||||||||
The Company’s financial instruments are cash and cash equivalents, accounts payable, and derivative warrant liabilities. The recorded values of cash equivalents and accounts payable approximate their fair values based on their short-term nature. The fair value of derivative warrant liabilities is estimated using option pricing models that are based on the individual characteristics of our warrants, preferred and common stock, the derivative warrant liability on the valuation date as well as assumptions for volatility, remaining expected life, risk-free interest rate and, in some cases, credit spread. The derivative warrant liabilities are the only recurring Level 3 fair value measures. | |||||||||||||||||
A summary of quantitative information with respect to valuation methodology and significant unobservable inputs used for the Company’s warrant liabilities that are categorized within Level 3 of the fair value hierarchy as of December 31, 2013 and October 31, 2013 is as follows: | |||||||||||||||||
Black-Scholes Warrant Pricing | October 31, 2013 | December 31, 2013 | |||||||||||||||
Stock Price | $ | 0.85 | $ | 0.85 | |||||||||||||
Risk-free Rate (5-year U.S. Treasury Yield) | 1.31 | % | 1.75 | % | |||||||||||||
Volatility (Annual) | 94.78 | % | 93.43 | % | |||||||||||||
Time to Maturity (Years) | 5.5 | 5.33 | |||||||||||||||
At December 31, 2013 and December 31, 2012, the estimated fair values of the liabilities measured on a recurring basis are as follows: | |||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||
Balance at | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, 2013 | Active Markets | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Warrant derivative liabilities | $ | 3,017 | $ | — | $ | — | $ | 3,017 | |||||||||
Total | $ | 3,017 | $ | — | $ | — | $ | 3,017 | |||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||
Balance at | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, 2012 | Active Markets | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Warrant derivative liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
Total | $ | — | $ | — | $ | — | $ | — | |||||||||
The following tables present the activity for liabilities measured at estimated fair value using unobservable inputs for the years ended December 31, 2013 and 2012: | |||||||||||||||||
Fair Value | |||||||||||||||||
Measurements Using | |||||||||||||||||
Significant | |||||||||||||||||
Unobservable Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Warrant Derivative | |||||||||||||||||
Liabilities | |||||||||||||||||
Beginning Balance at January 1, 2013 | $ | — | |||||||||||||||
Issuance of warrants with derivative liabilities | 3,373 | ||||||||||||||||
Changes in estimated fair value | 296 | ||||||||||||||||
Reclassification of derivative liability to additional paid-in capital | (652 | ) | |||||||||||||||
Ending balance at December 31, 2013 | $ | 3,017 | |||||||||||||||
Reclassification of derivative liability to additional paid-in capital relates to the warrants issued in connection with the debt financing that occurred on March 15, 2013. These warrants were accounted for as a liability until such time as the stockholders of the Company approved an increase in the number of authorized shares of the Company’s common stock. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Equity [Abstract] | ' | ||||||||||
Stockholders' Equity | ' | ||||||||||
11. Stockholders’ Equity | |||||||||||
Preferred Stock | |||||||||||
The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.10 per share with such designation, rights and preferences as may be determined from time to time by the Company’s board of directors. As of December 31, 2013, there are no shares of preferred stock issued or outstanding. | |||||||||||
On February 5, 2014, pursuant to a securities purchase agreement, dated as of January 31, 2014, with certain funds managed by Sabby Management, LLC and Broadfin Capital, LLC (together, the “Purchasers”), the Company sold (i) an aggregate of 12,300 shares of Series A Convertible Preferred Stock, par value $0.10 and a stated value of $1,000 per share (the “Series A Preferred Stock”), convertible into 14,642,857 shares of common stock at an initial conversion price of $0.84, and (ii) warrants to purchase up to 13,297,297 shares of common stock for aggregate gross proceeds of $12,300. The warrants have an exercise price of $0.74 per share, are immediately exercisable and have a term of five years. The number of shares issuable upon conversion of the Series A Preferred Stock and exercise of the Warrants are adjustable in the event of stock splits, stock dividends, combinations of shares and similar transactions. In connection with the financing, Broadfin Capital, LLC has been granted the right to designate one director to our Board of Directors, so as long as it retains 30% of its investment in the Series A Preferred Stock (or the shares of common stock underlying the Series A Preferred Stock) or holds any warrants, and the Purchasers have been granted rights of participation in future offerings of our securities for one year. As a condition of the financing, our directors, pursuant to subscription agreements dated as of January 31, 2014, purchased an aggregate of 202,703 shares of common stock, at a price of $0.74 per share, for aggregate gross proceeds of $150,000 (See Note 17). | |||||||||||
Common Stock | |||||||||||
The Company is authorized to issue 95,000,000 shares of Common Stock with a par value of $0.001 per share. | |||||||||||
In June 2012, the Company entered into a sales agreement with Cowen and Company, LLC, to sell shares of the Company’s common stock through an “at-the-market” equity offering program (the “ATM Program”), which was terminated on February 15, 2013. During the year ended December 31, 2013, the Company sold approximately 4.7 million shares under the ATM Program for gross and net proceeds of approximately $8,800 and $8,500, respectively. During the term of the ATM Program, the Company sold a total of approximately 6.6 million shares for aggregate gross and net proceeds of approximately $14,400 and $13,800, respectively. | |||||||||||
On February 12, 2013 the Company entered into an underwriting agreement with Cowen and Company, LLC, relating to the public offering of 6.1 million shares of the Company’s common stock, at a price to the public of $1.30 per share less underwriting discounts and commissions. The gross proceeds to the Company from the sale of the Common Stock totaled $7,900. After deducting the Underwriters’ discounts and commissions and other estimated offering expenses payable by the Company, net proceeds were approximately $7,300. The offering closed on February 15, 2013. The Common Stock was offered and sold pursuant to the Company’s Prospectus dated June 1, 2010 and the Company’s Prospectus Supplement filed with the Securities and Exchange Commission (the “SEC”) on February 11, 2013, in connection with a takedown from the Company’s effective shelf registration statement on Form S-3 (File No. 333-167113) declared effective by the SEC on June 1, 2010. | |||||||||||
Warrants | |||||||||||
On March 15, 2013, the Company executed loan documents with Hercules Technology Growth Capital Inc. In connection with the Loan, Hercules, as additional consideration, received a five year warrant to purchase 693,202 shares of common stock at an exercise price of approximately $1.12 per share. | |||||||||||
October 29, 2013, the Company entered into a securities purchase agreement with certain accredited investors in connection with a $6,000 registered offering of 4,228,181 shares of the Company’s common stock, fully paid prefunded warrants (“Series B Warrants”) to purchase up to 4,343,247 shares of its common stock and additional warrants (“Series A Warrants”) to purchase up to 6,857,142 shares of its common stock. The Series A Warrants are exercisable beginning on May 1, 2014 at a price of $0.85 per share and expire on May 1, 2019. The Series B Warrants are exercisable immediately for no additional consideration. The offering closed on October 31, 2013. | |||||||||||
The Series A Warrants have non-standard terms as they relate to a fundamental transaction and require a net-cash settlement upon a change in control of the Company and therefore are classified as a derivative. Therefore, these warrants have been recorded at fair value at the inception date of October 31, 2013, and will be recorded at their respective fair values at each subsequent balance sheet date. Any change in value between reporting periods will be recorded as a non-operating, non-cash charge in the Statements of Operations. The change in fair value of the warrant liability for the year ended December 31, 2013, was $296, which includes a change in fair value from the Series A warrants of $205. | |||||||||||
As of December 31, 2013, the Company had the following warrants issued: | |||||||||||
Total | |||||||||||
Issue Date | Holder | Warrants | Ex. Price | ||||||||
5/7/09 | Kingsbridge Capital Limited | 200,000 | $ | 11.35 | |||||||
4/26/13 | Hercules Technology Growth Capital | 693,202 | $ | 1.12 | |||||||
10/31/13 | Sabby Management, LLC “Series A” | 6,857,142 | $ | 0.85 | |||||||
10/31/13 | Sabby Management, LLC “Series B Prefunded Warrants” | 4,343,247 | $ | 0.7 | |||||||
12,093,591 | |||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||
12. Stock-Based Compensation | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
On April 25, 2013, at the Company’s 2013 Annual Meeting of Stockholders, the Company’s stockholders approved the Company’s adoption of the new 2013 Stock Incentive Plan (“2013 Plan”) having terms substantially similar to the Company’s 2005 Stock Incentive Plan (the “2005 Plan”) and having 3,500 shares available for issuance in respect of awards made there under. As of December 31, 2013, the aggregate number of shares of common stock remaining available for issuance for awards under the 2013 Plan and the 2005 Plan totaled approximately 3,729,853. | |||||||||||||||||||||
Stock awards under the Company’s stock option plans have been granted with exercise prices which are no less than the market value of the stock on the date of the grant. Options granted under the 2013 and 2005 Plan are generally time-based or performance-based options and vesting varies accordingly. Options under the plans expire up to a maximum of ten years from the date of grant. The plans provide for the granting of a maximum number of shares of common stock of 7,224,028 of which 3,729,853 are available for future grant as of December 31, 2013. Compensation expense recognized in the Statement of Operations during 2013 and 2012 for stock options and restricted stock awards amounted to $1,301 and $1,488, respectively. Cash received from options exercised under all share-based payment arrangements for the years ended December 31, 2013 and 2012 was $18 and $45, respectively. | |||||||||||||||||||||
The fair value of each option award granted is estimated on the date of grant using the Black-Scholes option valuation and assumptions as noted in the following table: | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Expected life | 5-10 years | 5-10 years | |||||||||||||||||||
Expected volatility | 72-77 | % | 74-80 | % | |||||||||||||||||
Risk-free interest rate | 0.71-2.45 | % | 0.91-1.60 | % | |||||||||||||||||
Dividend yield | — | — | |||||||||||||||||||
The expected life of the options is based on the observed and expected time to full-vesting, forfeiture and exercise. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected volatility assumptions were determined based upon the historical volatility of the Company’s daily closing stock price. The risk-free interest rate is based on rates provided by the U.S. Treasury with a term equal to the expected life of the option. The expected dividend yield is zero as the Company has never paid dividends and does not currently anticipate paying any in the foreseeable future. | |||||||||||||||||||||
At December 31, 2013, stock options to purchase 3,065,714 shares of common stock at exercise prices ranging from $0.65 to $10.35 per share are outstanding and are exercisable at various dates through 2023. The total number of options exercisable at December 31, 2013 and 2012 was 1,261,355 and 1,620,320 respectively, with weighted average exercise prices of $2.56 and $3.99, respectively. The aggregate intrinsic value of the options exercisable at December 31, 2013 is $0. | |||||||||||||||||||||
The status of the Company’s stock option plans during the periods indicated is summarized as follows: | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | |||||||||||||||||||||
Weighted | Remaining | ||||||||||||||||||||
Average | Contractual | Aggregate | |||||||||||||||||||
Number of | Exercise | Term in | Insintric | ||||||||||||||||||
Shares | Price | Years | Value | ||||||||||||||||||
Outstanding at December 31, 2011 | 2,057,104 | 4.35 | 6.6 | ||||||||||||||||||
Granted | 863,202 | 3.35 | 9.5 | ||||||||||||||||||
Exercised | (61,796 | ) | 2.91 | ||||||||||||||||||
Forfeited or expired | (431,977 | ) | 4.44 | ||||||||||||||||||
Outstanding at December 31, 2012 | 2,426,533 | 4.01 | 7 | $ | 29 | ||||||||||||||||
Granted | 4,994,465 | 1.46 | 9.5 | ||||||||||||||||||
Exercised | (18,059 | ) | 1 | 17 | |||||||||||||||||
Forfeited or expired | (4,337,225 | ) | 2.77 | 27 | |||||||||||||||||
Outstanding at December 31, 2013 | 3,065,714 | 1.62 | 9 | ||||||||||||||||||
Vested and exercisable at December 31, 2013 | 1,261,355 | $ | 2.56 | 8.1 | $ | — | |||||||||||||||
During the years ended December 31, 2013 and 2012 the weighted average fair value of options granted, estimated as of the grant date using the Black-Scholes option valuation model, was $0.60 and $2.28 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2013 and 2012 was $17 and $86, respectively. The requisite service periods for options granted during 2013 and 2012 for employees was four years and for directors was one year. | |||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Weighted- | |||||||||||||||||||||
Average | Weighted- | Weighted- | |||||||||||||||||||
Remaining | Average | Average | |||||||||||||||||||
Number | Contractual | Exercise | Number | Exercise | |||||||||||||||||
Range of Exercise Prices | Outstanding | Life | Price | Exercisable | Price | ||||||||||||||||
$0.65-$3.00 | 2,412,651 | 9.65 years | $ | 0.89 | 694,742 | $ | 1.17 | ||||||||||||||
$3.01-$6.00 | 500,513 | 7.72 years | 3.4 | 441,038 | 3.38 | ||||||||||||||||
$6.01-$10.35 | 152,550 | 3.35 years | 7.28 | 125,575 | 7.38 | ||||||||||||||||
$0.65-$10.35 | 3,065,714 | 9.02 years | $ | 1.62 | 1,261,355 | $ | 2.56 | ||||||||||||||
As of December 31, 2013, of the total 3,065,714 options outstanding, 1,804,359 have not vested. Of this total unvested amount, 650,850 will vest upon the attainment of certain milestones, and the balance will vest over the requisite service period. There was $755 of total unrecognized compensation cost related to unvested options, of which approximately $308 will be recognized upon achievement of performance milestones and $447 upon completion of the requisite service period. On February 11, 2013, the Company’s former chief executive officer contractually agreed to not exercise 900,000 fully vested options until such time as the stockholders of the Company approve an increase in the number of authorized shares of the Company’s common stock, or, if earlier, the Company’s written consent. On April 25, 2013, the Company’s stockholders approved an increase in the authorized shares of common stock and therefore the restriction placed on the former CEO’s ability to exercise the 900,000 fully vested options lapsed. For financial reporting purposes, the Forbearance Agreement was accounted for at the time it was executed as a cancellation with no concurrent grant and therefore upon the lapsing of the exercise restriction on April 25, 2013, the Company recognized additional stock compensation of approximately $423. | |||||||||||||||||||||
Other_Income
Other Income | 12 Months Ended |
Dec. 31, 2013 | |
Other Income And Expenses [Abstract] | ' |
Other Income | ' |
13. Other Income | |
In 2005, the Company discontinued all operations associated with its DIFOTI product. Under an exclusive sale and licensing agreement with KaVo Dental GmbH (“KaVo”) to further develop and commercialize DIFOTI, KaVo pays the Company an annual royalty based on the number of DIFOTI related systems sold per calendar year. Other income includes approximately $20 in royalty income in each of the years in the two year period ended December 31, 2013. |
Related_Party_Agreements
Related Party Agreements | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Agreements | ' |
14. Related Party Agreements | |
Consulting Agreement with Gerald Wagner, Ph.D. | |
In January 2007, Dr. Wagner, a former Director on the Company’s Board of Directors, entered into an amended and restated consulting contract with the Company. Under the terms of the amended contract, Dr. Wagner was paid a monthly retainer of $2.5 and was paid $2.5 for each additional consulting day. This amended agreement ended at the option of Dr. Wagner or the Company at any time, by providing fifteen days prior written notice, or immediately upon the mutual agreement of the Company and Dr. Wagner. The amounts paid to Dr. Wagner amounted to $0 and $30 in 2013 and 2012. Dr. Wagner resigned from the Company’s Board of Directors in December 2011 with the consulting contract remaining in effect until termination on December 31, 2012. | |
Transition Services Provided by Robert Coradini | |
On March 11, 2014, the Company agreed to pay Robert Coradini, a director and the Company’s former Interim Chief Executive Officer, approximately $48 in consideration for services provided in connection with the transition to a new Chief Executive Officer during the fourth quarter of 2013. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
15. Income Taxes | |||||||||
The Company accounts for income taxes using the asset and liability method for deferred income taxes. | |||||||||
The provision for income taxes includes federal, state and local income taxes currently payable and deferred taxes resulting from temporary differences between the financial statement and tax bases of assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. | |||||||||
The Company has incurred net losses since inception, accordingly, it has not provided for income taxes for the years ended December 31, 2013 and 2012. | |||||||||
The difference between the actual income tax benefit and that computed by applying the U.S. federal income tax rate of 34% to pretax loss from continuing operations is summarized below: | |||||||||
For the years ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Computed expected tax benefit | $ | (8,822 | ) | $ | (7,709 | ) | |||
State tax benefit, net of federal effect | (1,557 | ) | (1,360 | ) | |||||
Increase in the valuation allowance | 10,379 | 9,069 | |||||||
Provision for income taxes | $ | — | $ | — | |||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforward | $ | 35,086 | $ | 26,471 | |||||
Capitalized research and developmental costs | 27,794 | 26,511 | |||||||
Non-cash compensation | 3,681 | 3,200 | |||||||
Total deferred tax assets | 66,561 | 56,182 | |||||||
Less valuation allowance | (66,561 | ) | (56,182 | ) | |||||
Net deferred tax assets | $ | — | $ | — | |||||
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based on the Company’s historical net losses, management does not believe that it is more-likely-than not that the Company will realize the benefits of these deferred tax assets and, accordingly, a full valuation allowance has been recorded against the deferred tax assets as of December 31, 2012 and 2013. The Company’s valuation allowance against its deferred tax assets increased by $10,379 and $9,069 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
At December 31, 2013, the Company has net operating loss carryforwards of approximately $87,000 to offset future taxable income. The Company has experienced certain ownership changes which, under the provisions of Section 382 of the Internal Revenue Code of 1986, as amended, result in annual limitations on the Company’s ability to utilize its net operating losses in the future. The Company believes that these limitations may impact the Company’s ability to utilize its net operating losses in the future. The February 2014 equity raise by the Company, will likely limit the annual use of these net operating loss carryforwards. | |||||||||
FASB ASC 740 “Income Taxes” contains guidance with respect to uncertain tax positions which applies to all tax positions and clarifies the recognition of tax benefits in the financial statements by providing for a two-step approach of recognition and measurement. The first step involves assessing whether the tax position is more-likely-than-not to be sustained upon examination based upon its technical merits. The second step involves measurement of the amount to recognize. Tax positions that meet the more likely than not threshold are measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate finalization with the taxing authority. | |||||||||
The Company does not have any unrecognized tax benefits which would favorably affect the effective tax rate if recognized in future periods, or accrued penalties and interest. If such matters were to arise, the Company would recognize interest and penalties related to income tax matters in income tax expense. The earliest open tax year subject to examination is 2009. |
Restructuring_Charge
Restructuring Charge | 12 Months Ended |
Dec. 31, 2013 | |
Restructuring And Related Activities [Abstract] | ' |
Restructuring Charge | ' |
16. Restructuring Charge | |
As discussed in Note 1, in response to recurring operating losses and limited liquidity, during August 2013 the Company’s Board of Directors approved the Cost Reduction Plan that included a reduction in work force and the prospective elimination or deferral of all nonessential projects and activities and the scaling back or discontinuance of general corporate activities. The communication to affected employees was made during August 2013. In connection therewith, the Company recorded a charge for employee termination benefits totaling approximately $100 that is reflected in the statement of operations as increases in cost of revenue, research and development and selling, general and administrative expenses of approximately $100, for the year ended December 31, 2013. As of December 31, 2013 substantially all termination benefits have been paid. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
17. Subsequent Events | |
On February 5, 2014, pursuant to a securities purchase agreement, dated as of January 31, 2014, with certain funds managed by Sabby Management, LLC. and Broadfin Capital, LLC (together, the “Purchasers”), the Company sold (i) an aggregate of 12,300 shares of Series A Convertible Preferred Stock, par value $0.10 and a stated value of $1,000 per share (the “Series A Preferred Stock”), convertible into 14,642,857 shares of common stock at an initial conversion price of $0.84, and (ii) warrants to purchase up to 13,297,297 shares of common stock for aggregate gross proceeds of $12,300. The warrants have an exercise price of $0.74 per share, are immediately exercisable and have a term of five years. The number of shares issuable upon conversion of the Series A Preferred Stock and exercise of the Warrants are adjustable in the event of stock splits, stock dividends, combinations of shares and similar transactions. In connection with the financing, Broadfin Capital, LLC has been granted the right to designate one director to our Board of Directors, so as long as it retains 30% of its investment in the Series A Preferred Stock (or the shares of common stock underlying the Series A Preferred Stock) or holds any warrants, and the Purchasers have been granted rights of participation in future offerings of our securities for one year. As a condition of the financing, our directors, pursuant to subscription agreements dated as of January 31, 2014, purchased an aggregate of 202,703 shares of common stock, at a price of $0.74 per share, for aggregate gross proceeds of $150,000. | |
In connection with this financing, the Company also granted to the Purchasers resale registration rights with respect to the shares of common stock underlying the Series A Preferred Stock and the warrants pursuant to the terms of a Registration Rights Agreement. In addition to the registration rights, the Purchasers are entitled to receive liquidated damages upon the occurrence of a number of events relating to filing, getting effective and maintaining an effective registration statement covering the shares underlying the Series A Preferred Stock and the warrants, including the failure of the Company to file a resale registration statement by no later than February 25, 2014 and the failure of the Company to have such resale registration statement declared effective by the Securities and Exchange Commission (the “SEC”) by no later than March 7, 2014. The liquated damages will be payable upon the occurrence of each of those events and each monthly anniversary thereof until cured. The amount of liquated damages payable is equal to 10% of the aggregate purchase price paid by each Purchaser for the first two events (and/or the monthly anniversary of an event), 7.5% of the aggregate purchase price paid by each Purchaser for the third event (and/or the monthly anniversary of an event), 2.5% of the aggregate purchase price paid by each Purchaser for the fourth event (and/or the monthly anniversary of an event), and 1% of the aggregate purchase price paid by each Purchaser for the next two events (and/or the monthly anniversary of an event), in all up to a total of 32% of the aggregate purchase price paid by each Purchaser. The liquidated damages are prorated on a daily basis for each event until such event is cured. | |
The terms of the Registration Rights Agreement required us to provide the Purchasers with a copy of the registration statement not less than 17 trading days prior to its filing with the SEC. The Company was unable to file the initial re-sale registration statement by February 25, 2014 or have it declared effective by March 7, 2014 and paid liquidated damages to the Purchasers in the aggregate amount of $2,460. | |
On February 19, 2014, the Company was notified by NASDAQ that the Company was eligible for an additional 180 day grace period and has until August 18, 2014 to regain compliance with NASDAQ’s minimum bid price requirement. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Liquidity and Going Concern | ' | ||||||||
Liquidity and Going Concern | |||||||||
The Company has experienced recurring losses and negative cash flow from operations and management expects these conditions to continue for the foreseeable future. As the result of these factors, the Company has been and continues to be dependent on raising capital from the sale of securities in order to continue to operate and to meet its obligations in the ordinary course of business. Management recently put in place a cost reduction program that included staff reductions, the elimination or deferral of all nonessential projects and activities and the scaling back or discontinuance of general corporate activities (referred to as “Cost Reduction Plan”) to preserve liquidity. In addition, as discussed below, in October 2013 the Company raised net proceeds of approximately $5,500 from the sale of common stock and warrants to strengthen the Company’s financial position, and in February 2014 the Company raised net proceeds of approximately $11,500 from the sale of convertible preferred stock, common stock and warrants (see Note 17). | |||||||||
The Company continues to incur net losses. These net losses and the $6,400 payment to Hercules made in September have had a significant negative impact on the Company’s working capital and financial position and may impact its future ability to meet its obligations in the ordinary course of business. As a result, management believes that, even with cash and cash equivalents held at December 31, 2013, together with the net proceeds from the February 2014 financing and estimated revenue, there is significant doubt about our ability to continue as a going concern. The Company continues to assess the effects of its previously announced Cost Reduction Plan and is prepared to reduce various operational costs. Although the Company has no specific arrangements or plans, the Company will need additional capital during the next 12 months, which may take the form of equity or debt, on either a loan or convertible basis. However, under the terms of the securities purchase agreement entered into in connection with its February 2014 financing, the Company is prohibited from issuing (or entering into any agreement to issue) any equity securities in connection with a financing until the later of July 31, 2014 or 2 months after the effectiveness of the re-sale registration statement the Company is required to file in connection with that financing. | |||||||||
The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America (GAAP) applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. In addition, as of December 31, 2013, the Company had an accumulated deficit of $168,148, had incurred a net loss for the year ended December 31, 2013 of $25,948 and had positive working capital of $4,699. Funding has been provided by related parties as well as new investors committed to make it possible to maintain, expand, and ensure the advancement of the MelaFind® product. | |||||||||
The Company expects expenses will increase in connection with its continued commercialization and development activities related to MelaFind®. Having commenced commercialization in March 2012, the Company expects to incur additional medical, marketing and sales expenses in the near future and to incur additional contract manufacturing and inventory expenses in the future which will require additional funding. Furthermore, having recently commenced a refocused marketing strategy focusing on key institutions, opinion leaders and dermatologists who treat many of the patients at high risk for melanoma, the Company expects to incur additional expenses continuing to transition its operations and implement its new refocused marketing strategy. As a result, the Company expects to continue to incur significant and increasing operating losses for the foreseeable future and cannot determine at this time when it will generate any significant revenues. As of December 31, 2013, the Company’s total of cash and cash equivalents was approximately $3,783. Subsequent to year end, the Company raised approximately $12,300 in gross proceeds from a private placement of the Company’s convertible preferred stock and warrants to purchase shares of its common stock. In the first quarter of 2014, the Company paid a total of $2,460, and may be required to pay an additional $1,476, in liquidated damages to the investors in this private placement as a result of its failure to file and have declared effective a registration statement in accordance with the time periods set forth in a registration rights agreement between the Company and the investors. | |||||||||
Should the Company experience unforeseen expenses, or if anticipated revenues are not realized, the effect could have a further negative impact on management’s estimated operating results over the next twelve months. If existing cash is insufficient to satisfy the Company’s liquidity requirements, or if it develops additional products, the Company may seek to sell additional equity or debt securities or obtain a credit facility, which will be even more difficult due to the current tightness in the credit markets. If additional funds are raised through the issuance of debt securities, these securities would have rights senior to those associated with the Company’s common stock and could contain covenants that would restrict the Company’s operations. Any additional financing may not be available in amounts or on terms acceptable to the Company, or at all. If the Company is unable to obtain any additional financing, it may be required to reduce the scope of, delay or eliminate some or all of planned product research development and commercialization activities, which could harm its business. | |||||||||
Concentration of Credit Risk | ' | ||||||||
Concentration of Credit Risk | |||||||||
The Company performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for uncollectible accounts receivable based upon the expected collectability of all accounts receivable. | |||||||||
Cash and cash equivalents | ' | ||||||||
Cash and cash equivalents | |||||||||
Cash equivalents primarily represent funds invested in money market funds, bank certificates of deposit and U.S. government debt securities with an original maturity of three months or less at the date of acquisition. | |||||||||
At year end, the Company has maintained bank balances in excess of insurance limits established by the Federal Deposit Insurance Corporation. The Company has not experienced any losses with respect to cash. Management believes the Company is not exposed to any significant credit risk with respect to its cash and cash equivalents. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. | |||||||||
Allowance for Doubtful Accounts | ' | ||||||||
Allowance for Doubtful Accounts | |||||||||
The Company establishes an allowance for uncollectible trade accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability of outstanding balances. These provisions are established when the aging of outstanding amounts exceeds allowable terms and are re-evaluated at each quarter end for adequacy. In determining the adequacy of the provision, the Company considers known uncollectible or at risk receivables. | |||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories consist of finished products that are stated at the lower of cost (first-in, first-out) or market value. As of December 31, 2013 the reserve for obsolete inventory totaled $325. The Company reserved for specific inventory items that are no longer being used in the devices. | |||||||||
In mid 2013, a significant cost reduction program was put into place. On November 11, 2013, a new CEO was brought on board and a newly refocused “Go-to-Market” strategy focusing on key institutions, opinion leaders and dermatologists who treat many of the patients at high risk for melanoma was adopted. As part of this strategy, in late December, we elected to change our business model from a rental to a sale model for the MelaFind® device. In accordance with this new sales model, the Company has reclassed approximately $5,402 of MelaFind® devices from property and equipment into inventory. | |||||||||
Business Segments | ' | ||||||||
Business Segments | |||||||||
The Company’s operations are confined to one business segment: the design, development and commercialization of MelaFind®. | |||||||||
Revenue recognition | ' | ||||||||
Revenue recognition | |||||||||
The Company considers revenue to be earned when all of the following criteria are met: persuasive evidence a sales arrangement exists; delivery has occurred or services have been rendered; the price is fixed or determinable; and collectability is reasonably assured. The Company’s agreements with dermatologists regarding the MelaFind ® system combine the elements noted above with a future service obligation. While the Company was required to place the MelaFind ® systems with dermatologists for their exclusive use, under the Company’s previous rental model with respect to MelaFind® placements, ownership of the MelaFind ® systems remains with the Company. In December 2013, the Company changed its business model from a rental and usage model, to a sales model for our MelaFind ® product. Therefore, the Company will recognize revenues for product sales when title and risk of loss transfers to customers, which is after installation and training on the MelaFind® system, and when reliable estimates of sales allowances and warranties can be made and collectability is reasonably assured. The Company will regularly review the information related to these estimates and adjust the reserves accordingly. | |||||||||
During 2013, the Company generated revenue from either usage based on the number of patient sessions, or lesions examined, or a fixed monthly fee. Electronic record cards activate the MelaFind ® system, capture data and store the data initial installation fee for each MelaFind ® system which covers training, delivery, initial supplies, maintenance and the right to use MelaFind®. In accordance with the accounting guidance regarding multiple-element arrangements, the Company allocates total contract consideration to each element based upon the relative standalone selling prices of each element, and recognizes the associated revenue for each element as delivery occurs or over the related service period, generally expected to be two years. Revenues associated with undelivered elements are deferred until delivery occurs or services are rendered. The significant judgments we make relate to allocation of the contract consideration to each element whereby changes in standalone selling price could impact the amount of revenue recognized in a specific period and estimates of uncollectible accounts receivables. | |||||||||
In Germany, the typical contract with dermatologists calls for an installation or fixed monthly fee. Additionally, the Company typically charges a per patient usage charge. Revenue generated from German contracts is recognized when earned. | |||||||||
Cost of Revenue | ' | ||||||||
Cost of Revenue | |||||||||
Costs of revenue are associated with: the placement of the MelaFind® system in the doctor’s office, the cost of consumables delivered at installation, the cost of the electronic record cards, technical support costs and depreciation expense of the MelaFind ® system placed with the customer which, under the Company’s previous rental model with respect to MelaFind® placements, remains the property of the Company. Certain product quality and manufacturing overhead costs associated with supporting the contract manufacturers of MelaFind ® are allocated to costs of revenue. | |||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
For the year ended December 31, 2013 and 2012, the Company capitalized approximately $5,188 and $6,158, respectively of MelaFind ® system costs. Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets (generally three to five years). Costs incurred for maintenance and repairs are expensed as incurred and expenditures for major replacements and improvements are capitalized and depreciated over their estimated remaining useful lives. Depreciation expense for the years ended December 31, 2013 and 2012 was $2,434 and $957, respectively. | |||||||||
Patents and Trademarks, Net | ' | ||||||||
Patents and Trademarks, Net | |||||||||
The Company capitalizes the costs of obtaining its patents and registration of Trademarks. Such costs are accumulated and capitalized during the filing periods, which can take several years to complete. Successful applications that result in the granting of a patent or trademark are then amortized over 15 years on a straight-line basis. Unsuccessful applications are written off and expensed in the fiscal period where the application is abandoned or discontinued. | |||||||||
Deferred Financing Costs | ' | ||||||||
Deferred Financing Costs | |||||||||
Financing costs incurred in connection with the Hercules Technology Growth Capital, Inc. (“Hercules”) note payable were deferred and are being amortized over the term of the note using the effective interest rate method. These financing costs were written off when the loan was repaid in September 2013. As of December 31, 2013 and 2012 the Company recorded deferred financing costs of $0 and $106, respectively, in other assets in the accompanying balance sheets. | |||||||||
Deferred Revenue and Prepaid Expenses | ' | ||||||||
Deferred Revenue and Prepaid Expenses | |||||||||
Deferred placement revenue relates primarily to rental placement fees and product sales or services paid but not delivered at period end. The Company has certain customer arrangements providing for multiple years content services. To the extent deferred services are to be provided beyond twelve months they are treated as long-term. Prepaid expenses are recorded at amounts paid to suppliers or others. Amounts recorded are evaluated for impairment each reporting period. | |||||||||
Long-lived Assets | ' | ||||||||
Long-lived Assets | |||||||||
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered to be impaired when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition exceeds its carrying amount. The amount of impairment loss, if any, is measured as the difference between the net book value of the asset and its estimated fair value. (See Note 5) | |||||||||
Research and Development | ' | ||||||||
Research and Development | |||||||||
Expenditures for research and development are expensed as incurred. | |||||||||
Accrued Expenses | ' | ||||||||
Accrued Expenses | |||||||||
As part of the process of preparing financial statements, we are required to estimate accrued expenses. This process involves identifying services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for such service where we have not been invoiced or otherwise notified of the actual cost. Examples of estimated accrued expenses include: | |||||||||
• | professional service fees; | ||||||||
• | contract clinical and regulatory related service fees; | ||||||||
• | fees paid to contract manufacturers in conjunction with the production of MelaFind® components or materials; and | ||||||||
• | fees paid to third party data collection organizations and investigators in conjunction with the clinical trials and FDA and other regulatory review. | ||||||||
In connection with such service fees, our estimates are most affected by our projections of the timing of services provided relative to the actual level of services provided by such service providers. The majority of our service providers invoice us monthly in arrears for services performed. In the event that we do not identify certain costs that have begun to be incurred or we under or overestimate the level of services performed or the costs of such services, our actual expenses could differ from such estimates. The date on which certain services commence, the level of services performed on or before a given date, and the cost of such services are often subjective determinations. We make these judgments based upon the facts and circumstances known to us and accrue for such costs in accordance with accounting principles generally accepted in the U.S. This is done as of each balance sheet date in our financial statements. | |||||||||
Deferred Rent | ' | ||||||||
Deferred Rent | |||||||||
Operating lease agreements which contain provisions for future rent increases or periods in which rent payments are reduced or abated are recorded in monthly rent expense in the amount of the total payments over the lease term divided by the number of months of the lease term. The difference between rent expense recorded and the amount paid is credited or charged to deferred rent which is reflected on the accompanying balance sheet. | |||||||||
Stock-Based Compensation | ' | ||||||||
Stock-Based Compensation | |||||||||
We record compensation expense associated with stock options, restricted stock awards and other forms of equity compensation in accordance with FASB ASC 718, Compensation-Stock Compensation. The fair value of an equity award is determined at the date of grant using the Black-Scholes Model and the fair value of the equity award is expensed over the service period. The most significant inputs used to value an equity award include current stock price, the amount the employee must pay to acquire the equity award, volatility rate, interest rate and estimated term. For equity awards that vest upon achieving a defined milestone, the underlying compensation charge is recorded, when it is probable that the milestone will be achieved. It is then amortized over the estimated period to satisfy vesting requirements. The probability of vesting is updated at each reporting period and compensation is adjusted accordingly. The significant judgments relate to the assumptions used in the valuation model to determine the fair value of the equity instrument including the volatility rate, term and interest rate. Any increases (decreases) in either of the volatility rate, the term or the interest rate would increase (decrease) the value of the equity instrument and the corresponding compensation expense recognized each period. Estimates of performance based awards vesting can also have a significant impact on recognized stock compensation as the likelihood of a performance based award vesting can change from period-to-period with changes in estimates included in current period operations. | |||||||||
Stock-based compensation to non-employee consultants is granted for services rendered and is completely vested on the grant date. The fair value of the award is determined on the date of grant using the Black-Sholes Model and the fair value is expensed in current period operations. | |||||||||
Income Tax Expense Estimates and Policies | ' | ||||||||
Income Tax Expense Estimates and Policies | |||||||||
The Company accounts for income taxes using the asset and liability method for deferred income taxes. | |||||||||
The provision for income taxes includes federal, state and local income taxes currently payable and deferred taxes resulting from temporary differences between the financial statement and tax bases of assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more-likely-than-not that a tax benefit will not be realized. | |||||||||
With respect to uncertain tax positions, the Company would recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits to be recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company currently has no uncertain tax positions. | |||||||||
The Company does not have any unrecognized tax benefits which would favorably affect the effective tax rate if recognized in future periods, or accrued penalties and interest. If such matters were to arise, the Company would recognize interest and penalties related to income tax matters in income tax expense. The earliest open tax year subject to examination is 2009. | |||||||||
Net Loss Per Common Share | ' | ||||||||
Net Loss Per Common Share | |||||||||
Basic net loss per common share excludes dilution for potentially dilutive securities and is computed by dividing loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share gives effect to dilutive options, warrants and other potential common shares outstanding during the period. Diluted net loss per common share is equal to the basic net loss per common share since all potentially dilutive securities are anti-dilutive for each of the periods presented. Potential common stock equivalents outstanding as of December 31, 2013 and 2012 consist of stock options, warrants and restricted stock awards which are summarized as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Common stock options | 3,065,714 | 2,426,533 | |||||||
Warrants | 12,093,591 | 200,000 | |||||||
Restricted Stock Awards | 99,375 | — | |||||||
Total | 15,258,680 | 2,626,533 | |||||||
Comprehensive loss | ' | ||||||||
Comprehensive loss | |||||||||
For all periods presented, the Company had no comprehensive income items and accordingly there is no difference between the reported net loss and per share amounts per the Statements of Operations and comprehensive net loss and related per share amounts. | |||||||||
Litigation | ' | ||||||||
Litigation | |||||||||
From time to time, the Company may become involved in litigation and other legal actions. The Company estimates the range of liability related to any pending litigation where the amount and range of loss can be estimated. The Company records its best estimate of a loss when the loss is considered probable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and (ii) the range of loss can be reasonably estimated. Through the date of these financial statements, the Company is currently not involved in litigation or other legal actions. | |||||||||
Fair Value Measurements | ' | ||||||||
Fair Value Measurements | |||||||||
The Company has adopted the provisions of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” as of January 1, 2008 for financial instruments. This standard defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. | |||||||||
Warrant Liability | ' | ||||||||
Warrant Liability | |||||||||
The Company accounts for the 6,857,142 common stock warrants issued in connection with the October 31, 2013 financing in accordance with the guidance contained in ASC 815-40-15-7D, “Contracts in Entity’s Own Equity” whereby under that provision they do not meet the criteria for equity treatment and must be recorded as a liability. Accordingly, the Company classifies the warrant instrument as a liability at its fair value and adjusts the instrument to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s statements of operations. The fair value of warrants issued by the Company in connection the transaction has been estimated using a Black-Scholes valuation. | |||||||||
Recently Issued Accounting Standards | ' | ||||||||
Recently Issued Accounting Standards | |||||||||
The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued pronouncements and concluded that there are no recently issued accounting pronouncements that the Company has yet to adopt that are expected to have a material effect on the Company’s financial position, results of operations or cash flows. | |||||||||
Management's Evaluation of Subsequent Events | ' | ||||||||
Management’s Evaluation of Subsequent Events | |||||||||
Management evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, management did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial statements (See Note 17). | |||||||||
Foreign Exchange | ' | ||||||||
Foreign Exchange | |||||||||
The Company’s operations in Germany use the U.S. dollar as its functional currency and from time to time conducts business in Euros. For all periods presented, aggregate foreign exchange transaction gains and losses were not material. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Stock Options, Warrants and Restricted Stock Awards | ' | ||||||||
Potential common stock equivalents outstanding as of December 31, 2013 and 2012 consist of stock options, warrants and restricted stock awards which are summarized as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Common stock options | 3,065,714 | 2,426,533 | |||||||
Warrants | 12,093,591 | 200,000 | |||||||
Restricted Stock Awards | 99,375 | — | |||||||
Total | 15,258,680 | 2,626,533 | |||||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
Inventory consists of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
MelaFind® Systems | $ | 5,402 | $ | — | |||||
Mela record cards | 328 | 333 | |||||||
Accessories | 226 | 343 | |||||||
5,956 | 676 | ||||||||
Reserve for obsolete inventory | (325 | ) | — | ||||||
$ | 5,631 | $ | 676 | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||||||
Summary of Property and Equipment | ' | ||||||||||||||||
Property and equipment, at cost, consists of the following: | |||||||||||||||||
December 31, | Estimated | ||||||||||||||||
2013 | 2012 | Useful Life | Useful Life | ||||||||||||||
Leasehold improvements | $ | 906 | $ | 906 | Lease Term | Lease Term | |||||||||||
Laboratory and research equipment | 1,084 | 1,084 | 3-5 years | 3-5 years | |||||||||||||
Office furniture and equipment | 2,023 | 2,023 | 3-5 years | 3-5 years | |||||||||||||
MelaFind® Systems | 5,081 | 6,306 | 3 years | 3 years | |||||||||||||
9,094 | 10,319 | ||||||||||||||||
Accumulated depreciation and amortization | (5,403 | ) | (2,969 | ) | |||||||||||||
$ | 3,691 | $ | 7,350 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Approximate Aggregate Minimum Future Payments | ' | ||||
For the years ended December 31, the approximate aggregate minimum future payments due under this lease are as follows: | |||||
2014 | $ | 478 | |||
2015 | 478 | ||||
2016 | 477 | ||||
TOTAL | $ | 1,433 | |||
Recurring_Fair_Value_Measureme1
Recurring Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Summary of Quantitative Information with Respect to Valuation Methodology and Significant Unobservable Inputs Used for Company's Warrant Liabilities | ' | ||||||||||||||||
A summary of quantitative information with respect to valuation methodology and significant unobservable inputs used for the Company’s warrant liabilities that are categorized within Level 3 of the fair value hierarchy as of December 31, 2013 and October 31, 2013 is as follows: | |||||||||||||||||
Black-Scholes Warrant Pricing | October 31, 2013 | December 31, 2013 | |||||||||||||||
Stock Price | $ | 0.85 | $ | 0.85 | |||||||||||||
Risk-free Rate (5-year U.S. Treasury Yield) | 1.31 | % | 1.75 | % | |||||||||||||
Volatility (Annual) | 94.78 | % | 93.43 | % | |||||||||||||
Time to Maturity (Years) | 5.5 | 5.33 | |||||||||||||||
Estimated Fair Values of Liabilities Measured on Recurring Basis | ' | ||||||||||||||||
At December 31, 2013 and December 31, 2012, the estimated fair values of the liabilities measured on a recurring basis are as follows: | |||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||
Balance at | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, 2013 | Active Markets | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Warrant derivative liabilities | $ | 3,017 | $ | — | $ | — | $ | 3,017 | |||||||||
Total | $ | 3,017 | $ | — | $ | — | $ | 3,017 | |||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||
Balance at | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, 2012 | Active Markets | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Warrant derivative liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
Total | $ | — | $ | — | $ | — | $ | — | |||||||||
Liabilities Measured at Estimated Fair Value Using Unobservable Inputs | ' | ||||||||||||||||
The following tables present the activity for liabilities measured at estimated fair value using unobservable inputs for the years ended December 31, 2013 and 2012: | |||||||||||||||||
Fair Value | |||||||||||||||||
Measurements Using | |||||||||||||||||
Significant | |||||||||||||||||
Unobservable Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Warrant Derivative | |||||||||||||||||
Liabilities | |||||||||||||||||
Beginning Balance at January 1, 2013 | $ | — | |||||||||||||||
Issuance of warrants with derivative liabilities | 3,373 | ||||||||||||||||
Changes in estimated fair value | 296 | ||||||||||||||||
Reclassification of derivative liability to additional paid-in capital | (652 | ) | |||||||||||||||
Ending balance at December 31, 2013 | $ | 3,017 | |||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Equity [Abstract] | ' | ||||||||||
Schedule of Warrants Issued | ' | ||||||||||
As of December 31, 2013, the Company had the following warrants issued: | |||||||||||
Total | |||||||||||
Issue Date | Holder | Warrants | Ex. Price | ||||||||
5/7/09 | Kingsbridge Capital Limited | 200,000 | $ | 11.35 | |||||||
4/26/13 | Hercules Technology Growth Capital | 693,202 | $ | 1.12 | |||||||
10/31/13 | Sabby Management, LLC “Series A” | 6,857,142 | $ | 0.85 | |||||||
10/31/13 | Sabby Management, LLC “Series B Prefunded Warrants” | 4,343,247 | $ | 0.7 | |||||||
12,093,591 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Schedule of Fair Value of Each Option Award Granted | ' | ||||||||||||||||||||
The fair value of each option award granted is estimated on the date of grant using the Black-Scholes option valuation and assumptions as noted in the following table: | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Expected life | 5-10 years | 5-10 years | |||||||||||||||||||
Expected volatility | 72-77 | % | 74-80 | % | |||||||||||||||||
Risk-free interest rate | 0.71-2.45 | % | 0.91-1.60 | % | |||||||||||||||||
Dividend yield | — | — | |||||||||||||||||||
Schedule of Stock Option Plans | ' | ||||||||||||||||||||
The status of the Company’s stock option plans during the periods indicated is summarized as follows: | |||||||||||||||||||||
Weighted | |||||||||||||||||||||
Average | |||||||||||||||||||||
Weighted | Remaining | ||||||||||||||||||||
Average | Contractual | Aggregate | |||||||||||||||||||
Number of | Exercise | Term in | Insintric | ||||||||||||||||||
Shares | Price | Years | Value | ||||||||||||||||||
Outstanding at December 31, 2011 | 2,057,104 | 4.35 | 6.6 | ||||||||||||||||||
Granted | 863,202 | 3.35 | 9.5 | ||||||||||||||||||
Exercised | (61,796 | ) | 2.91 | ||||||||||||||||||
Forfeited or expired | (431,977 | ) | 4.44 | ||||||||||||||||||
Outstanding at December 31, 2012 | 2,426,533 | 4.01 | 7 | $ | 29 | ||||||||||||||||
Granted | 4,994,465 | 1.46 | 9.5 | ||||||||||||||||||
Exercised | (18,059 | ) | 1 | 17 | |||||||||||||||||
Forfeited or expired | (4,337,225 | ) | 2.77 | 27 | |||||||||||||||||
Outstanding at December 31, 2013 | 3,065,714 | 1.62 | 9 | ||||||||||||||||||
Vested and exercisable at December 31, 2013 | 1,261,355 | $ | 2.56 | 8.1 | $ | — | |||||||||||||||
Schedule of Stock Options Outstanding | ' | ||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Weighted- | |||||||||||||||||||||
Average | Weighted- | Weighted- | |||||||||||||||||||
Remaining | Average | Average | |||||||||||||||||||
Number | Contractual | Exercise | Number | Exercise | |||||||||||||||||
Range of Exercise Prices | Outstanding | Life | Price | Exercisable | Price | ||||||||||||||||
$0.65-$3.00 | 2,412,651 | 9.65 years | $ | 0.89 | 694,742 | $ | 1.17 | ||||||||||||||
$3.01-$6.00 | 500,513 | 7.72 years | 3.4 | 441,038 | 3.38 | ||||||||||||||||
$6.01-$10.35 | 152,550 | 3.35 years | 7.28 | 125,575 | 7.38 | ||||||||||||||||
$0.65-$10.35 | 3,065,714 | 9.02 years | $ | 1.62 | 1,261,355 | $ | 2.56 | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Computation of U.S. Federal Income Tax Rate to Pretax Loss From Continuing Operations | ' | ||||||||
The difference between the actual income tax benefit and that computed by applying the U.S. federal income tax rate of 34% to pretax loss from continuing operations is summarized below: | |||||||||
For the years ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Computed expected tax benefit | $ | (8,822 | ) | $ | (7,709 | ) | |||
State tax benefit, net of federal effect | (1,557 | ) | (1,360 | ) | |||||
Increase in the valuation allowance | 10,379 | 9,069 | |||||||
Provision for income taxes | $ | — | $ | — | |||||
Summary of Deferred Tax Assets and Liabilities | ' | ||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforward | $ | 35,086 | $ | 26,471 | |||||
Capitalized research and developmental costs | 27,794 | 26,511 | |||||||
Non-cash compensation | 3,681 | 3,200 | |||||||
Total deferred tax assets | 66,561 | 56,182 | |||||||
Less valuation allowance | (66,561 | ) | (56,182 | ) | |||||
Net deferred tax assets | $ | — | $ | — | |||||
Company_Additional_Information
Company - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Aug. 22, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 19, 2014 |
Subsequent Event [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net cash used in operating activities | ' | ($19,413) | ($19,224) | ' |
Net revenues | ' | $536 | $278 | ' |
Number of consecutive business days, non-compliance of minimum bid price | '30 days | ' | ' | ' |
Minimum bid price | $1 | ' | ' | ' |
Grace period granted by NASDAQ to regain compliance | '180 days | ' | ' | ' |
Additional grace period | ' | ' | ' | '180 days |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
Subsequent Event [Member] | Subsequent Event [Member] | First Quarter of 2014 [Member] | ||||||
Liquidity And Managements Plans [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of common stock and warrants | $5,500 | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from the sale of convertible preferred stock, common stock and warrants | ' | ' | ' | ' | ' | 11,500 | ' | ' |
Payment made to lender | ' | 6,400 | ' | ' | ' | ' | ' | ' |
Accumulated deficit | ' | ' | -168,148 | -142,200 | ' | ' | ' | ' |
Net loss | ' | ' | -25,948 | -22,673 | ' | ' | ' | ' |
Working capital | ' | ' | 4,699 | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | 3,783 | 7,862 | 27,997 | ' | ' | ' |
Convertible preferred stock and warrants | ' | ' | ' | ' | ' | ' | 12,300 | ' |
Liquidated damages | ' | ' | ' | ' | ' | ' | ' | 2,460 |
Additional liquidated damages | ' | ' | ' | ' | ' | ' | ' | $1,476 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | |
Segment | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Liquid investment maturity period | 'Three months or less | ' | ' |
Reserve for obsolete inventory | $325,000 | $0 | ' |
Inventory, Gross | 5,956,000 | 676,000 | ' |
Number of segments operated by the company | 1 | ' | ' |
Associated revenue over the related service period | 'Generally expected to be two years | ' | ' |
Property and equipment, capitalization cost | 5,188,000 | 6,158,000 | ' |
Depreciation expense | 2,434,000 | 957,000 | ' |
Deferred financing costs | ' | 106,000 | ' |
Uncertain tax positions | 0 | ' | ' |
Tax benefits to be recognized on likelihood of being realized upon ultimate resolution | 'Greater than fifty percent | ' | ' |
Open tax year subject to examination | '2009 | ' | ' |
Comprehensive income (loss) | 0 | ' | ' |
Warrants issued to purchase common stock | ' | ' | 6,857,142 |
MelaFind Systems [Member] | ' | ' | ' |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Inventory, Gross | $5,402,000 | ' | ' |
Minimum [Member] | ' | ' | ' |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of related assets | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of related assets | '5 years | ' | ' |
Patents and Trademarks [Member] | ' | ' | ' |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful life of patents or trademark | '15 years | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Schedule of Stock Options, Warrants and Restricted Stock Awards (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Potential common stock equivalents | 15,258,680 | 2,626,533 |
Common Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Potential common stock equivalents | 3,065,714 | 2,426,533 |
Warrant [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Potential common stock equivalents | 12,093,591 | 200,000 |
Restricted Stock Awards [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Potential common stock equivalents | 99,375 | ' |
Inventory_Schedule_of_Inventor
Inventory - Schedule of Inventory (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Inventory, Gross | $5,956 | $676 |
Reserve for obsolete inventory | -325 | 0 |
Inventory, Net | 5,631 | 676 |
MelaFind Systems [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory, Gross | 5,402 | ' |
Mela Record Cards [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory, Gross | 328 | 333 |
Accessories [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory, Gross | $226 | $343 |
Inventory_Additional_Informati
Inventory - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Inventory, Gross | $5,956 | $676 |
MelaFind Systems [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory, Gross | $5,402 | ' |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | $9,094 | $10,319 |
Accumulated depreciation and amortization | -5,403 | -2,969 |
Net | 3,691 | 7,350 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | 906 | 906 |
Estimated useful life of leasehold improvements | 'Lease Term | ' |
Laboratory and Research Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | 1,084 | 1,084 |
Office Furniture and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | 2,023 | 2,023 |
MelaFind Systems [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross | $5,081 | $6,306 |
Estimated Useful Life | '3 years | ' |
Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '3 years | ' |
Minimum [Member] | Laboratory and Research Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '3 years | ' |
Minimum [Member] | Office Furniture and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '3 years | ' |
Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '5 years | ' |
Maximum [Member] | Laboratory and Research Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '5 years | ' |
Maximum [Member] | Office Furniture and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '5 years | ' |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation expense | $2,434 | $957 |
Inventory, Gross | 5,956 | 676 |
MelaFind Systems [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Impairment charge | 1,011 | ' |
Description of user agreements expire period | 'User agreements expire over the next 2 years | ' |
Inventory, Gross | $5,402 | ' |
Patents_and_Trademarks_Additio
Patents and Trademarks - Additional Information (Detail) (Patents and Trademarks [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Patents and Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Accumulated amortization, net | $232 | $227 |
Amortization expense related to all patents | 6 | 12 |
Amortization expense of currently held patents for the year 2014 | 5 | ' |
Amortization expense of currently held patents for the year 2015 | 5 | ' |
Amortization expense of currently held patents for the year 2016 | 5 | ' |
Amortization expense of currently held patents for the year 2017 | 5 | ' |
Amortization expense of currently held patents for the year 2018 | $5 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Non-cancelable operating lease expiry period | '2016-12 | ' |
Rent expense charged to operations | $509 | $483 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Approximate Aggregate Minimum Future Payments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $478 |
2015 | 478 |
2016 | 477 |
TOTAL | $1,433 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation And Retirement Disclosure [Abstract] | ' | ' |
Amount of company contributions | $136 | $151 |
Percentage of contribution by the company of each employee salary | 3.00% | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 10, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Mar. 15, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 15, 2013 | Dec. 31, 2013 | Sep. 10, 2013 |
Warrant Obligation [Member] | Warrant Obligation [Member] | Warrant Obligation [Member] | Hercules Technology Growth Capital Inc. [Member] | Hercules Technology Growth Capital Inc. [Member] | Hercules Technology Growth Capital Inc. [Member] | |||||
Minimum [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan payable | ' | ' | ' | ' | ' | ' | ' | $6,000 | ' | ' |
Accrued interest rate | ' | ' | ' | ' | ' | ' | ' | 10.45% | ' | ' |
Maturity period of loan | ' | ' | ' | ' | ' | ' | ' | '42 months | ' | ' |
Time period of interest payment | ' | ' | ' | ' | ' | ' | ' | 'First 12 months | ' | ' |
Prepayment of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,400 |
Term fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | 425 |
Warrants issued to purchase common stock | ' | 6,857,142 | ' | ' | ' | ' | ' | 693,202 | ' | ' |
Warrants issued to purchase common stock, exercise price | ' | ' | ' | ' | ' | ' | ' | 1.12 | ' | ' |
Expiry date for warrant outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 26-Apr-18 | ' |
Warrant issuance date | ' | ' | ' | ' | ' | ' | ' | ' | 25-Apr-13 | ' |
Fair value of warrant obligation | ' | ' | ' | 563 | ' | ' | ' | ' | ' | ' |
Initial carrying value of the loan | ' | ' | ' | 5,300 | ' | ' | ' | ' | ' | ' |
Changes in fair value of warrants | ' | ' | 296 | ' | 90 | ' | ' | ' | ' | ' |
Stock prices | ' | ' | ' | ' | ' | $1.16 | $1.18 | ' | ' | ' |
Volatility | ' | 94.78% | 93.43% | ' | 77.00% | ' | ' | ' | ' | ' |
Maturity period | ' | '5 years 6 months | '5 years 3 months 29 days | ' | '5 years | ' | ' | ' | ' | ' |
Exercise prices | ' | $0.85 | $0.85 | ' | ' | $1.15 | $1.16 | ' | ' | ' |
Risk free interest rate of return | ' | 1.31% | 1.75% | ' | 0.84% | ' | ' | ' | ' | ' |
Change in underlying unobservable inputs | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Initial loan discount amount | ' | ' | 727 | ' | ' | ' | ' | ' | ' | ' |
Loss on early extinguishment of debt | $983 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recurring_Fair_Value_Measureme2
Recurring Fair Value Measurements - Summary of Quantitative Information with Respect to Valuation Methodology and Significant Unobservable Inputs Used for Company's Warrant Liabilities (Detail) (USD $) | 1 Months Ended | 12 Months Ended |
Oct. 31, 2013 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' | ' |
Stock Price | $0.85 | $0.85 |
Risk-free Rate | 1.31% | 1.75% |
Volatility (Annual) | 94.78% | 93.43% |
Time to maturity (Years) | '5 years 6 months | '5 years 3 months 29 days |
Recurring_Fair_Value_Measureme3
Recurring Fair Value Measurements - Summary of Quantitative Information with Respect to Valuation Methodology and Significant Unobservable Inputs Used for Company's Warrant Liabilities (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' |
U.S Treasury Yield, period | '5 years |
Recurring_Fair_Value_Measureme4
Recurring Fair Value Measurements - Estimated Fair Values of Liabilities Measured on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | $3,017 | ' |
Warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | 3,017 | ' |
Quoted Prices in Active Markets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | ' | ' |
Quoted Prices in Active Markets (Level 1) [Member] | Warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | 3,017 | ' |
Significant Unobservable Inputs (Level 3) [Member] | Warrant [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | $3,017 | ' |
Recurring_Fair_Value_Measureme5
Recurring Fair Value Measurements - Liabilities Measured at Estimated Fair Value Using Unobservable Inputs (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Warrant [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Warrant [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | $3,017 | $3,017 | $3,017 | ' | ' |
Issuance of warrants with derivative liabilities | ' | ' | ' | ' | 3,373 |
Changes in estimated fair value | ' | ' | ' | ' | 296 |
Reclassification of derivative liability to additional paid-in capital | ' | ' | ' | ' | -652 |
Ending Balance | $3,017 | $3,017 | $3,017 | ' | $3,017 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Oct. 31, 2013 | Oct. 29, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 12, 2013 | Dec. 31, 2013 | Oct. 29, 2013 | Dec. 31, 2013 | Oct. 29, 2013 | Mar. 15, 2013 | Feb. 05, 2014 | Jan. 31, 2014 | Feb. 05, 2014 | Feb. 05, 2014 |
ATM Program [Member] | ATM Program [Member] | Shelf Registration Statement [Member] | Securities Purchase Agreement [Member] | Series A Warrants [Member] | Series A Warrants [Member] | Series B Warrants [Member] | Hercules Technology Growth Capital Inc. [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||
Series A Convertible Preferred Stock [Member] | Series A Preferred Stock [Member] | |||||||||||||||
Securities Financing Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | 10,000,000 | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | $0.10 | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,300 | ' |
Preferred stock, shares outstanding | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' |
Preferred stock stated value, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' |
Preferred stock converted to common stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,642,857 | ' |
Preferred stock converted to common stock, conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.84 | ' |
Warrants issued to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,297,297 | ' |
Proceeds from issuance of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,300 | ' |
Warrants issued to purchase common stock, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | 0.85 | ' | ' | 1.12 | ' | ' | 0.74 | ' |
Warrants issued, exercisable term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Preferred stock voting rights, description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'In connection with the financing, Broadfin Capital, LLC has been granted the right to designate one director to our Board of Directors, so as long as it retains 30% of its investment in the Series A Preferred Stock (or the shares of common stock underlying the Series A Preferred Stock) or holds any warrants, and the Purchasers have been granted rights of participation in future offerings of our securities for one year. | ' | ' | ' |
Percentage of preferred stock investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% |
Common stock purchased, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 202,703 | ' | ' |
Common stock purchased, share price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.74 | ' | ' |
Proceeds from common stock purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' |
Common stock, shares authorized | 95,000,000 | ' | ' | 95,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.00 | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales agreement termination date | ' | ' | ' | ' | ' | 15-Feb-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock issued through company ATM program | ' | ' | ' | ' | 4,700,000 | 6,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from sale of common stock | ' | ' | ' | ' | 8,800 | 14,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of common stock | ' | ' | ' | ' | 8,500 | 13,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public offering of common stock shares under underwriting agreement | ' | ' | ' | ' | ' | ' | 6,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial public offering price per share | ' | ' | ' | ' | ' | ' | $1.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from sale of common stock | ' | ' | ' | ' | ' | ' | 7,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of common stock | ' | ' | ' | ' | ' | ' | 7,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants issued to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 693,202 | ' | ' | ' | ' |
Warrants expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' |
Common stock issued | 47,501,596 | ' | 4,228,181 | 32,204,720 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants issued to purchase common stock | ' | 6,857,142 | ' | ' | ' | ' | ' | ' | 6,857,142 | ' | 4,343,247 | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock and warrants | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' | ' | ' | ' | ' | ' |
Warrants exercisable date | ' | ' | ' | ' | ' | ' | ' | ' | 1-May-14 | ' | ' | ' | ' | ' | ' | ' |
Warrants expiry date | ' | ' | ' | ' | ' | ' | ' | ' | 1-May-19 | ' | ' | ' | ' | ' | ' | ' |
Offering closed date | ' | ' | ' | ' | ' | ' | ' | 31-Oct-13 | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of warrant liability | $296 | ' | ' | ' | ' | ' | ' | ' | ' | $205 | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Warrants Issued (Detail) | Dec. 31, 2013 |
Class of Warrant or Right [Line Items] | ' |
Total Warrants | 12,093,591 |
Kingsbridge Capital Limited [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Issue Date | 7-May-09 |
Total Warrants | 200,000 |
Ex. Price | 11.35 |
Hercules Technology Growth Capital [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Issue Date | 26-Apr-13 |
Total Warrants | 693,202 |
Ex. Price | 1.12 |
Sabby Management, LLC "Series A" [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Issue Date | 31-Oct-13 |
Total Warrants | 6,857,142 |
Ex. Price | 0.85 |
Sabby Management, LLC "Series B Prefunded Warrants" [Member] | ' |
Class of Warrant or Right [Line Items] | ' |
Issue Date | 31-Oct-13 |
Total Warrants | 4,343,247 |
Ex. Price | 0.7 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Apr. 25, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 11, 2013 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Shares available for future grants | ' | 3,729,853 | ' | ' | ' |
Expiry period of option plan | ' | '10 years | ' | ' | ' |
Number of granted shares | ' | 4,994,465 | 863,202 | ' | ' |
Compensation expense recognized for stock option | ' | $1,301 | $1,488 | ' | ' |
Cash received from options and warrants exercised | ' | 18 | 45 | ' | ' |
Expected dividend yield | ' | ' | ' | ' | ' |
Number of stock options to purchase | ' | 3,065,714 | ' | ' | ' |
Common stock at exercise prices range, minimum | ' | $0.65 | ' | ' | ' |
Common stock at exercise prices range, maximum | ' | $10.35 | ' | ' | ' |
Total options outstanding | ' | 1,261,355 | 1,620,320 | ' | ' |
Weighted Average Exercise Price per Share Vested and exercisable | ' | $2.56 | $3.99 | ' | ' |
Total intrinsic value of options exercisable | ' | 0 | ' | ' | ' |
Weighted average fair value of options granted | ' | $0.60 | $2.28 | ' | ' |
Total intrinsic value of options exercised | ' | 17 | 86 | ' | ' |
Requisite service periods for options granted for employees | ' | '4 years | '4 years | ' | ' |
Requisite service periods for options granted to directors | ' | '1 year | '1 year | ' | ' |
Total options outstanding | ' | 3,065,714 | 2,426,533 | ' | 2,057,104 |
Options nonvested | ' | 1,804,359 | ' | ' | ' |
Total unrecognized compensation cost related to unvested options | ' | 755 | ' | ' | ' |
Total unrecognized compensation cost to be recognized over the requisite service period | ' | 447 | ' | ' | ' |
Fully vested options | ' | ' | ' | 900,000 | ' |
Fully vested options lapsed | 900,000 | ' | ' | ' | ' |
Fully vested options lapsing exercise restriction date | ' | 25-Apr-13 | ' | ' | ' |
Additional stock compensation recognized | 423 | ' | ' | ' | ' |
2013 Stock Incentive Plan [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Shares available for future grants | ' | 3,500,000 | ' | ' | ' |
2005 and 2013 Stock Incentive Plan [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Aggregate shares of common stock available for grant | ' | 3,729,853 | ' | ' | ' |
2005 Stock Incentive Plan [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Number of granted shares | ' | 7,224,028 | ' | ' | ' |
Performance Milestones [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Options vested upon the attainment of milestone | ' | 650,850 | ' | ' | ' |
Total unrecognized compensation cost | ' | $308 | ' | ' | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Fair Value of Each Option Award Granted (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected volatility - Minimum | 72.00% | 74.00% |
Expected volatility - Maximum | 77.00% | 80.00% |
Risk-free interest rate - Minimum | 0.71% | 0.91% |
Risk-free interest rate - Maximum | 2.45% | 1.60% |
Dividend yield | ' | ' |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected life | '5 years | '5 years |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected life | '10 years | '10 years |
StockBased_Compensation_Schedu1
Stock-Based Compensation - Schedule of Stock Option Plans (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' | ' |
Number of Shares Outstanding, Beginning | 2,426,533 | 2,057,104 | ' | ' |
Number of Shares Granted | 4,994,465 | 863,202 | ' | ' |
Number of Shares Exercised | -18,059 | -61,796 | ' | ' |
Number of Shares Forfeited or expired | -4,337,225 | -431,977 | ' | ' |
Number of Shares Outstanding, Ending | 3,065,714 | 2,426,533 | 2,057,104 | ' |
Number of Shares Vested and exercisable | 1,261,355 | ' | ' | ' |
Weighted Average Exercise Price per Share Outstanding, Beginning | $1.62 | $4.01 | $4.35 | ' |
Weighted Average Exercise Price per Share Granted | ' | $1.46 | $3.35 | ' |
Weighted Average Exercise Price per Share of options Exercised | ' | $1 | $2.91 | ' |
Weighted Average Exercise Price per Share Forfeited or expired | ' | $2.77 | $4.44 | ' |
Weighted Average Exercise Price per Share Outstanding, Ending | ' | $1.62 | $4.01 | $4.35 |
Weighted Average Exercise Price per Share Vested and exercisable | $2.56 | $3.99 | ' | ' |
Weighted Average Remaining Contractual Term in Years Granted | ' | '9 years 6 months | '9 years 6 months | ' |
Weighted Average Remaining Contractual Term in Years Vested and exercisable | '8 years 1 month 6 days | ' | ' | ' |
Weighted Average Remaining Contractual Term in Years Outstanding | ' | '9 years | '7 years | '6 years 7 months 6 days |
Aggregate Intrinsic Value Outstanding Vested and exercisable | $0 | ' | ' | ' |
Aggregate Intrinsic Value Outstanding | ' | 29 | ' | ' |
Aggregate Intrinsic Value for Exercised | ' | 17 | ' | ' |
Aggregate Intrinsic Value for Forfeited or expired | ' | $27 | ' | ' |
StockBased_Compensation_Schedu2
Stock-Based Compensation - Schedule of Stock Options Outstanding (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit | $0.65 |
Range of Exercise Prices, Upper Range Limit | $10.35 |
Options Exercisable, Number Exercisable | 3,065,714 |
Range One [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit | $0.65 |
Range of Exercise Prices, Upper Range Limit | $3 |
Options Outstanding, Number Outstanding | 2,412,651 |
Options Outstanding, Weighted-Average Remaining Contractual Life | '9 years 7 months 24 days |
Options Outstanding, Weighted-Average Exercise Price | $0.89 |
Options Exercisable, Number Exercisable | 694,742 |
Options Exercisable, Weighted-Average Exercise Price | $1.17 |
Range Two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit | $3.01 |
Range of Exercise Prices, Upper Range Limit | $6 |
Options Outstanding, Number Outstanding | 500,513 |
Options Outstanding, Weighted-Average Remaining Contractual Life | '7 years 8 months 19 days |
Options Outstanding, Weighted-Average Exercise Price | $3.40 |
Options Exercisable, Number Exercisable | 441,038 |
Options Exercisable, Weighted-Average Exercise Price | $3.38 |
Range Three [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit | $6.01 |
Range of Exercise Prices, Upper Range Limit | $10.35 |
Options Outstanding, Number Outstanding | 152,550 |
Options Outstanding, Weighted-Average Remaining Contractual Life | '3 years 4 months 6 days |
Options Outstanding, Weighted-Average Exercise Price | $7.28 |
Options Exercisable, Number Exercisable | 125,575 |
Options Exercisable, Weighted-Average Exercise Price | $7.38 |
Net Range [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit | $0.65 |
Range of Exercise Prices, Upper Range Limit | $10.35 |
Options Outstanding, Number Outstanding | 3,065,714 |
Options Outstanding, Weighted-Average Remaining Contractual Life | '9 years 7 days |
Options Outstanding, Weighted-Average Exercise Price | $1.62 |
Options Exercisable, Number Exercisable | 1,261,355 |
Options Exercisable, Weighted-Average Exercise Price | $2.56 |
Other_Income_Additional_Inform
Other Income - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income And Expenses [Abstract] | ' | ' |
Royalties earned | $20 | $20 |
Related_Party_Agreements_Addit
Related Party Agreements - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 11, 2014 | |
Consulting Agreement with Gerald Wagner, Ph.D [Member] | Consulting Agreement with Gerald Wagner, Ph.D [Member] | Transition Services Provided by Robert Coradini [Member] | |
Subsequent Event [Member] | |||
Related Party Transaction [Line Items] | ' | ' | ' |
Monthly retaining fee | $2,500 | ' | ' |
Additional retaining fee | 2,500 | ' | ' |
Amount paid under consulting agreement | 0 | 30,000 | ' |
Consulting agreement termination date | 31-Dec-12 | ' | ' |
Service fee | ' | ' | $48,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
U.S. federal income tax rate | 34.00% | ' |
Increase in the valuation allowance | $10,379 | $9,069 |
Net operating loss carryforwards | $87,000 | ' |
Tax positions more likely than not threshold | 50.00% | ' |
Tax benefit recognition, description | 'Tax positions that meet the more likely than not threshold are measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate finalization with the taxing authority. | ' |
Income_Taxes_Computation_of_US
Income Taxes - Computation of U.S. Federal Income Tax Rate to Pretax Loss From Continuing Operations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Computed expected tax benefit | ($8,822) | ($7,709) |
State tax benefit, net of federal effect | -1,557 | -1,360 |
Increase in the valuation allowance | 10,379 | 9,069 |
Provision for income taxes | ' | ' |
Income_Taxes_Summary_of_Deferr
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carryforward | $35,086 | $26,471 |
Capitalized research and developmental costs | 27,794 | 26,511 |
Non-cash compensation | 3,681 | 3,200 |
Total deferred tax assets | 66,561 | 56,182 |
Less valuation allowance | -66,561 | -56,182 |
Net deferred tax assets | ' | ' |
Restructuring_Charge_Additiona
Restructuring Charge - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' |
Employee termination benefits | $100 |
Cost of Revenue, Research and Development and Selling General and Administrative Expenses [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Employee termination benefits | $100 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 19, 2014 | Feb. 05, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Feb. 05, 2014 | Feb. 05, 2014 |
First Two Events [Member] | Third Event [Member] | Fourth Event [Member] | Next Two (Fifth and Sixth) Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Series A Convertible Preferred Stock [Member] | Series A Preferred Stock [Member] | |||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 12,300 | ' |
Preferred stock, par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' |
Preferred stock stated value, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' |
Preferred stock converted to common stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,642,857 | ' |
Preferred stock converted to common stock, conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.84 | ' |
Warrants issued to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,297,297 | ' |
Proceeds from issuance of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,300 | ' |
Warrants issued, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.74 | ' |
Warrants issued, exercisable term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Preferred stock voting rights, description | ' | ' | ' | ' | ' | ' | ' | 'In connection with the financing, Broadfin Capital, LLC has been granted the right to designate one director to our Board of Directors, so as long as it retains 30% of its investment in the Series A Preferred Stock (or the shares of common stock underlying the Series A Preferred Stock) or holds any warrants, and the Purchasers have been granted rights of participation in future offerings of our securities for one year. | ' | ' | ' | ' |
Percentage of preferred stock investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% |
Common stock purchased, shares | ' | ' | ' | ' | ' | ' | ' | ' | 202,703 | ' | ' | ' |
Common stock purchased, share price | ' | ' | ' | ' | ' | ' | ' | ' | $0.74 | ' | ' | ' |
Proceeds from common stock purchased | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' |
Aggregate purchase price paid by Purchaser | 32.00% | ' | 10.00% | 7.50% | 2.50% | 1.00% | ' | ' | ' | ' | ' | ' |
Number of trading days to file registration statement | ' | ' | ' | ' | ' | ' | ' | ' | ' | '17 days | ' | ' |
Initial re-sale registration statement closure date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25-Feb-14 | ' | ' |
Initial re-sale effective declaration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7-Mar-14 | ' | ' |
Liquidation damages paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,460 | ' | ' |
Additional grace period | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' |
Additional grace period granted date | ' | ' | ' | ' | ' | ' | 18-Aug-14 | ' | ' | ' | ' | ' |