Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 07, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'NEPH | ' |
Entity Common Stock, Shares Outstanding | ' | 18,034,632 |
Entity Registrant Name | 'NEPHROS INC | ' |
Entity Central Index Key | '0001196298 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $168 | $47 |
Accounts receivable | 104 | 935 |
Inventory, less allowances of $274 at September 30, 2013 and $269 at December 31, 2012 | 291 | 312 |
Prepaid expenses and other current assets | 37 | 109 |
Total current assets | 600 | 1,403 |
Property and equipment, net | 9 | 16 |
Other assets, net of accumulated amortization | 1,947 | 2,109 |
Total assets | 2,556 | 3,528 |
Current liabilities: | ' | ' |
Accounts payable | 1,065 | 1,070 |
License and supply agreement fee payable | 0 | 1,318 |
Accrued expenses | 183 | 321 |
Deferred revenue, current portion | 702 | 707 |
Total current liabilities | 1,950 | 3,416 |
Long-term portion of deferred revenue | 176 | 707 |
Total liabilities | 2,126 | 4,123 |
Commitments and Contingencies (Note 10) | ' | ' |
Stockholders’ equity (deficit): | ' | ' |
Preferred stock, $.001 par value; 5,000,000 shares authorized at September 30, 2013 and December 31, 2012; no shares issued and outstanding at September 30, 2013 and December 31, 2012 | 0 | 0 |
Common stock, $.001 par value; 90,000,000 shares authorized at September 30, 2013 and December 31, 2012; 18,034,632 and 11,949,824 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively. | 18 | 12 |
Additional paid-in capital | 100,391 | 96,847 |
Accumulated other comprehensive income | 74 | 76 |
Accumulated deficit | -100,053 | -97,530 |
Total stockholders’ equity (deficit) | 430 | -595 |
Total liabilities and stockholders’ equity (deficit) | $2,556 | $3,528 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Inventory, allowances | $274 | $269 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 18,034,632 | 11,949,824 |
Common stock, shares outstanding | 18,034,632 | 11,949,824 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net revenues: | ' | ' | ' | ' |
Product revenues | $242 | $438 | $979 | $930 |
License revenues | 176 | 166 | 535 | 509 |
Total net revenues | 418 | 604 | 1,514 | 1,439 |
Cost of goods sold | 189 | 191 | 610 | 448 |
Gross margin | 229 | 413 | 904 | 991 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 204 | 208 | 687 | 552 |
Depreciation and amortization | 55 | 52 | 169 | 96 |
Selling, general and administrative | 578 | 1,006 | 2,497 | 2,564 |
Total operating expenses | 837 | 1,266 | 3,353 | 3,212 |
Loss from operations | -608 | -853 | -2,449 | -2,221 |
Interest income | 0 | 0 | 0 | 2 |
Interest expense | -5 | 0 | -52 | 0 |
Gain on sale of equipment | 1 | 0 | 3 | 0 |
Other income (expense) | 1 | 0 | -25 | 55 |
Net loss | -611 | -853 | -2,523 | -2,164 |
Other comprehensive income (loss), foreign currency translation adjustments | 0 | 17 | -2 | 7 |
Total comprehensive loss | ($611) | ($836) | ($2,525) | ($2,157) |
Net loss per common share, basic and diluted | ($0.03) | ($0.07) | ($0.17) | ($0.20) |
Weighted average common shares outstanding, basic and diluted | 17,787,356 | 11,560,329 | 14,805,395 | 11,032,743 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data | |||||
Balance at Dec. 31, 2012 | ($595) | $12 | $96,847 | $76 | ($97,530) |
Balance, shares at Dec. 31, 2012 | ' | 11,949,824 | ' | ' | ' |
Net loss | -2,523 | ' | ' | ' | -2,523 |
Net unrealized losses on foreign currency translation | -2 | ' | ' | -2 | ' |
Shareholder rights offering, net | 2,771 | 5 | 2,766 | ' | ' |
Shareholder rights offering, net, shares | ' | 5,000,000 | ' | ' | ' |
Issuance of restricted stock, shares | ' | 293,099 | ' | ' | ' |
Exercise of warrants | 248 | 1 | 247 | ' | ' |
Exercise of warrants, shares | ' | 791,709 | ' | ' | ' |
Noncash stock-based compensation | 517 | ' | 517 | ' | ' |
Warrant modification | 14 | ' | 14 | ' | ' |
Balance at Sep. 30, 2013 | $430 | $18 | $100,391 | $74 | ($100,053) |
Balance, shares at Sep. 30, 2013 | ' | 18,034,632 | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities: | ' | ' |
Net loss | ($2,523) | ($2,164) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation of property and equipment | 7 | 6 |
Amortization of other assets | 162 | 90 |
Noncash stock-based compensation, including stock options and restricted stock | 401 | 335 |
Noncash warrant inducement | 14 | 0 |
Inventory reserve | 5 | 0 |
Gain/(loss) on foreign currency transactions | 17 | -3 |
Gain on sale of equipment | -3 | 0 |
(Increase) decrease in operating assets: | ' | ' |
Accounts receivable | 831 | 852 |
Inventory | 16 | -47 |
Prepaid expenses and other current assets | 71 | 65 |
Increase (decrease) in operating liabilities: | ' | ' |
Accounts payable and accrued expenses | -45 | 286 |
License and supply agreement fee payable | -1,318 | 0 |
Deferred revenue | -535 | -509 |
Net cash used in operating activities | -2,900 | -1,089 |
Investing activities: | ' | ' |
Purchase of property and equipment | ' | -7 |
Proceeds from sale of equipment | 3 | 0 |
Purchase of intangible assets | 0 | -659 |
Net cash provided by (used in) investing activities | 3 | -666 |
Financing activities: | ' | ' |
Proceeds from exercise of warrants | 248 | 451 |
Proceeds from issuance of Senior Secured Note | 1,300 | 0 |
Proceeds from issuance of common stock, net of equity issuance costs of $229 | 2,771 | 0 |
Payment of Senior Secured Note | -1,300 | 0 |
Net cash provided by financing activities | 3,019 | 451 |
Effect of exchange rates on cash and cash equivalents | -1 | 1 |
Net increase (decrease) in cash | 121 | -1,303 |
Cash, beginning of period | 47 | 1,669 |
Cash, end of period | 168 | 366 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid for taxes | 2 | 18 |
Restricted stock issued to settle liability | 116 | 0 |
Payable related to license and supply agreement | 0 | 1,266 |
Receivable related to license agreement | 0 | 771 |
Fair value of stock options granted to Medica | $0 | $273 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Payments of Stock Issuance Costs | $229 |
Basis_of_Presentation_and_Goin
Basis of Presentation and Going Concern | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation and Going Concern | ' |
1. Basis of Presentation and Going Concern | |
Interim Financial Information | |
The accompanying unaudited condensed consolidated interim financial statements of Nephros, Inc. and its wholly owned subsidiary, Nephros International Limited (collectively, the “Company” or “Nephros”) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2012 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2013. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying condensed consolidated financial statements do not include all of the information and notes required by GAAP for a complete financial statement presentation. The condensed consolidated balance sheet as of December 31, 2012 was derived from the Company’s audited consolidated financial statements but does not include all disclosures required by GAAP. In the opinion of management, the interim condensed consolidated financial statements reflect all adjustments consisting of normal, recurring adjustments that are necessary for a fair presentation of the financial position, results of operations and cash flows for the condensed consolidated interim periods presented. Interim results are not necessarily indicative of results for a full year. Certain reclassifications were made to the prior year’s amounts to conform to the 2013 presentation. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires 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 amount of revenues and expenses, during the reporting period. Actual results could differ materially from those estimates. | |
Going Concern and Management’s Response | |
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company’s recurring losses and difficulty in generating sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. The Company’s condensed consolidated interim financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
The Company has incurred significant losses in operations in each quarter since inception. For the nine months ended September 30, 2013 and 2012, the Company has incurred net losses of $2,523,000 and $2,164,000, respectively. To become profitable, the Company must increase revenue substantially and achieve and maintain positive gross and operating margins. If the Company is not able to increase revenue and gross and operating margins sufficiently to achieve profitability, its results of operations and financial condition will be materially and adversely affected. | |
On February 4, 2013, the Company issued a senior secured note (“Senior Secured Note”) to Lambda Investors LLC in the principal amount of $1.3 million. The note bore interest at the rate of 12% per annum and was to mature on August 4, 2013, at which time all principal and accrued interest would be due. However, the Company agreed to prepay, without penalty, amounts due under the note, including accrued interest, with the cash proceeds from a rights offering prior to the maturity date. The note was secured by a first priority lien on all of the Company’s property, including its intellectual property. In addition, the Company agreed to extend by one year the expiration date of all of Lambda’s outstanding warrants. | |
On March 4, 2013, the Company filed a Registration Statement on Form S-1 in connection with a $3 million rights offering (the “Rights Offering”). On April 17, 2013, the Company’s Registration Statement on Form S-1 related to the Rights Offering was declared effective by the SEC. | |
The Rights Offering commenced on April 17, 2013 and expired on May 17, 2013. All of the Company’s stockholders and warrant holders were eligible to participate in the Rights Offering on a pro rata basis based upon their proportionate ownership of the Company’s common stock on a fully-diluted basis. Pursuant to the Rights Offering, the Company distributed to holders of its common stock and/or warrants one non-transferable subscription right for each share of common stock, and each share of common stock underlying a warrant, held as of April 4, 2013. Each right entitled the holder to purchase 0.18776 of a share of the Company’s common stock at a subscription price of $0.60 per share. The Company rounded up any fractional shares to the nearest whole share. | |
On May 22, 2013 the Company completed its Rights Offering which resulted in gross proceeds of $3.0 million. The aggregate net proceeds were approximately $1.4 million, after deducting the repayment of the $1.3 million Senior Secured Note, plus $46,800 of accrued interest thereon, issued to Lambda Investors, LLC, the payment of an 8% sourcing/transaction fee ($104,000) in respect of the Senior Secured Note and an aggregate of $100,000 for reimbursement of Lambda Investors’ legal fees incurred in connection with the Senior Secured Note and the Rights Offering. | |
On October 30, 2013, the Company filed a Current Report on Form 8-K announcing the voluntary recalls of its point of use (POU) and DSU in-line ultrafilters used in hospital water treatment applications. As a result, the Company has recalled all production lots of its POU filters, and also requested that customers remove and discard certain labeling/promotional materials for the products. In addition, the Company also requested, for the DSU in-line ultrafilter, that customers remove and discard certain labeling/promotional materials for the product. These voluntary recalls do not affect the Company’s dialysis products. The condensed consolidated interim financial statements for the period ended September 30, 2013 include product revenues and cost of goods sold adjustments of approximately $127,000 and $27,000, respectively, reflecting estimates of the financial impact of product recalled notified to the Company. The Company is unable to predict at this time what additional effect this recall might have on its business, financial condition, future prospects or reputation or whether the Company may be subject to future actions from the U.S. Food and Drug Administration. | |
On November 12, 2013, we issued a senior secured note to Lambda Investors LLC in the principal amount of $1.5 million. The note bears interest at the rate of 12% per annum and matures on May 12, 2014, at which time all principal and accrued interest will be due. We have agreed to prepay amounts due under the note with the cash proceeds from (a) a rights offering, (b) any other equity or debt financing, or (c) the issuance or incurrence of any other indebtedness or the sale of any assets outside the ordinary course of business, in each case prior to the maturity date. If we do not pay principal and interest under the note when due, the interest rate increases to 16% per annum. In addition, we have undertaken to conduct a $2.75 million rights offering of common stock. We expect the offering price will be $0.30 per share. All of our stockholders and warrantholders will be eligible to participate in the offering on a pro rata basis based upon their proportionate ownership of our common stock, calculated on an as converted to common stock, fully-diluted basis. In connection with the note and the rights offering, we have agreed to pay Lambda Investors an 8%, or $120,000, sourcing/transaction fee. In addition, we will pay Lambda Investors’ legal fees and other expenses incurred in connection with the note and rights offering in the amount of $75,000. The warrants held by Lambda Investors have an exercise price of $0.40 per share and certain warrants have full ratchet anti-dilution protection. The full ratchet anti-dilution protection for certain warrants will be triggered in connection with the rights offering as the $0.30 per share price is less than the $0.40 exercise price for these warrants. In connection with the proposed rights offering, the Company agreed to amend the expiration date of the existing warrants held by Lambda Investors from March 10, 2017 to the date which is the five year anniversary of the closing of the rights offering. Subject to the satisfaction of certain conditions, Lambda Investors has advised us that it intends to exercise its basic subscription privilege in full. To the extent that after the closing of the rights offering there still remain unsubscribed shares, Lambda Investors will have the right, at its option, to purchase any or all such remaining unsubscribed shares within ten days of the closing of the rights offering. In connection with the rights offering, we will file a registration statement on Form S-1, as may be amended, with the Securities and Exchange Commission. | |
There can be no assurance that the Company’s future cash flow will be sufficient to meet its obligations and commitments. If the Company is unable to generate sufficient cash flow from operations in the future to service its commitments the Company will be required to adopt alternatives, such as seeking to raise debt or equity capital, curtailing its planned activities or ceasing its operations. There can be no assurance that any such actions could be effected on a timely basis or on satisfactory terms or at all, or that these actions would enable the Company to continue to satisfy its capital requirements. | |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Concentration Of Credit Risk [Abstract] | ' | ||||||||
Concentration of Credit Risk | ' | ||||||||
2. Concentration of Credit Risk | |||||||||
For the nine months ended September 30, 2013 and 2012, the following customers accounted for the following percentages of the Company’s sales, respectively. | |||||||||
Customer | 2013 | 2012 | |||||||
A | 31 | % | 18 | % | |||||
B | 36 | % | 36 | % | |||||
C | 16 | % | 15 | % | |||||
As of September 30, 2013 and December 31, 2012, the following customers accounted for the following percentages of the Company’s accounts receivable, respectively. | |||||||||
Customer | 2013 | 2012 | |||||||
A | 57 | % | 4 | % | |||||
B | 31 | % | 2 | % | |||||
C | - | % | 85 | % | |||||
Revenue_Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2013 | |
Revenue Recognition [Abstract] | ' |
Revenue Recognition | ' |
3. Revenue Recognition | |
Revenue is recognized in accordance with Accounting Standards Codification ("ASC") Topic 605. Four basic criteria must be met before revenue can be recognized: (i) persuasive evidence that an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the fee is fixed or determinable; and (iv) collectability is reasonably assured. | |
The Company recognizes revenue related to product sales when delivery is confirmed by its external logistics provider and the other criteria of ASC Topic 605 are met. Product revenue is recorded net of returns and allowances. All costs and duties relating to delivery are absorbed by Nephros. Shipments for all products are currently received directly by the Company’s customers. | |
Deferred revenue on the accompanying September 30, 2013 condensed consolidated balance sheet is approximately $878,000 and is related to the License Agreement with Bellco (see Note 10) which is being deferred over the remainder of the expected obligation period. The Company has recognized approximately $1,580,000 of revenue related to this license agreement to date and approximately $535,000 for the nine months ended September 30, 2013. The Company amortizes the deferred revenue monthly over the expected obligation period which ends on December 31, 2014. This will result in expected recognized revenue of approximately $176,000 for the remaining three month period ending December 31, 2013 and $702,000 for the year ended December 31, 2014. | |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Stock-Based Compensation [Abstract] | ' | ||||
Stock-Based Compensation | ' | ||||
4. Stock-Based Compensation | |||||
Stock Options | |||||
The Company accounts for stock option grants to employees and non-employee directors under the provisions of ASC 718, Stock Compensation. ASC 718 requires the recognition of the fair value of stock-based compensation in the statement of operations. In addition, the Company accounts for stock option grants to consultants under the provisions of ASC 505-50, Equity-Based Payments to Non-Employees, and as such, these stock options are revalued at each reporting period through the vesting period. | |||||
Gerald J. Kochanski, Chief Financial Officer, Treasurer and Corporate Secretary of Nephros, Inc., resigned effective June 15, 2013. The Company agreed, in consideration of Mr. Kochanski providing certain consulting services to the Company, to extend the exercise period of his outstanding vested stock options from September 15, 2013 to March 14, 2014. This modification did not result in any additional compensation expense. | |||||
The fair value of stock option awards is estimated using a Black-Scholes option pricing model. The fair value of stock-based awards is amortized over the vesting period of the award using the straight-line method. | |||||
The Company granted 176,875 stock options during the nine months ended September 30, 2013 to employees, non-employees, directors and consultants. These stock options vest over a three-year or four-year period and will be expensed over the applicable vesting period. The fair value of all stock-based awards granted during the nine months ended September 30, 2013, excluding those forfeited below, was approximately $96,000. | |||||
As a result of Mr. Kochanski’s resignation, 90,945 stock options that were granted to him were forfeited on June 15, 2013. Of these 90,945 stock options, 25,000 were granted during the nine month period ended September 30, 2013. | |||||
The following assumptions were used for options granted for the nine months ended September 30, 2013: | |||||
Nine Months | |||||
Ended | |||||
September 30, 2013 | |||||
Risk-free interest rate | 1.09-1.22 | % | |||
Volatility | 127.46 - 131.79 | % | |||
Expected dividend yield | 0 | % | |||
Expected term | 5.75 - 6.25 yrs | ||||
The Company calculates expected volatility for a stock-based grant based on historic monthly stock price observations of common stock during the period immediately preceding the grant that is equal in length to the expected term of the grant. The Company also estimates future forfeitures, using historical employee behaviors related to forfeitures, as a part of the estimate of expense as of the grant date. With respect to grants of options, the risk free rate of interest is based on the U.S. Treasury rates appropriate for the expected term of the grant. | |||||
Stock-based compensation expense was approximately $300,000 and $335,000 for the nine months ended September 30, 2013 and 2012, respectively. For the nine months ended September 30, 2013, approximately $275,000 and approximately $25,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statement of operations. For the nine months ended September 30, 2012, approximately $314,000 and approximately $21,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statement of operations. | |||||
There was no tax benefit related to expense recognized in the nine months ended September 30, 2013 and 2012, as the Company is in a net operating loss position. As of September 30, 2013, there was approximately $832,000 of total unrecognized compensation cost related to unvested share-based compensation awards granted under the equity compensation plans which will be amortized over the weighted average remaining requisite service period of 2.5 years. The unrecognized compensation disclosed above does not include the effect of future grants of equity compensation, if any. Of the total $832,000, the Company expects to recognize approximately 11% in the remaining interim periods of 2013, approximately 40% in 2014, approximately 38% in 2015, approximately 10% in 2016 and approximately 1% in 2017. | |||||
Restricted Stock | |||||
On August 20, 2013, the Company issued 28,329 shares of restricted stock as compensation for the services of non-employee directors. The grant date fair value of the restricted stock award was approximately $43,000 and was based on the fair value of the common stock on the date of grant, and compensation expense is recognized ratably over a six month period. | |||||
For the nine months ended September 30, 2013, including those restricted shares issued on August 20, 2013, 339,028 shares of restricted stock were granted to certain employees and non-employee directors. As a result of Mr. Kochanski’s resignation, 45,929 of those shares of were forfeited on June 15, 2013. | |||||
Total stock-based compensation expense for the restricted stock grant was approximately $217,000 for the nine months ended September 30, 2013. For the nine months ended September 30, 2013, approximately $53,000 and approximately $48,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statement of operations. The remaining expense related to the restricted stock awards issued to non-employee directors of approximately $116,000 was recorded to offset accrued director’s fees that were incurred prior to September 30, 2013. Any additional stock-based compensation related to non-employee directors will be recorded to stock-based compensation expense. As of September 30, 2013, there was approximately $14,000 of unrecognized compensation expense related to the restricted stock awards, which is expected to be recognized over the next five months. | |||||
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2013 | |
Warrants [Abstract] | ' |
Warrants | ' |
5. Warrants | |
In connection with the Rights Offering, the Company temporarily reduced the exercise price for its warrants issued in March 2011 from $0.40 per share to $0.30 per share. The Company determined that this inducement was a modification of equity instruments and, therefore, an incremental fair value of the inducement was determined using the Black-Scholes option pricing model. | |
During the period that the Rights Offering was open, warrant holders exercised 14,879,708 warrants, issued in March 2011, for 687,793 shares of common stock, resulting in gross proceeds of approximately $206,000 to the Company. The incremental fair value of the inducement recorded in the nine months ended September 30, 2013 was approximately $14,000. | |
Additionally, during the nine months ended September 30, 2013, 2,248,222 warrants were exercised outside the period that the Rights Offering was open, resulting in proceeds of approximately $42,000 and the issuance of 103,916 shares of the Company’s common stock. | |
Comprehensive_Income_Loss
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2013 | |
Comprehensive Income (Loss) [Abstract] | ' |
Comprehensive Income (Loss) | ' |
6. Comprehensive Income (Loss) | |
Comprehensive income (loss), as defined in ASC 220, is the total of net income (loss) and all other non-owner changes in equity (or other comprehensive income (loss)) such as foreign currency translation adjustments. For the nine months ended September 30, 2013 and 2012, the comprehensive loss was approximately $2,525,000 and $2,157,000, respectively. | |
Loss_per_Common_Share
Loss per Common Share | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Loss Per Common Share [Abstract] | ' | |||||||
Loss per Common Share | ' | |||||||
7. Loss per Common Share | ||||||||
In accordance with ASC 260-10, net loss per common share amounts (“basic EPS”) are computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding and excluding any potential dilution. Net loss per common share amounts assuming dilution (“diluted EPS”) is generally computed by reflecting potential dilution from conversion of convertible securities, the exercise of stock options and warrants and any outstanding shares of unvested restricted stock. | ||||||||
The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Shares underlying warrants outstanding | 13,888,262 | 15,325,943 | ||||||
Shares underlying options outstanding | 2,380,644 | 2,294,714 | ||||||
Unvested restricted stock | 150,423 | - | ||||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Recent Accounting Pronouncements | ' |
8. Recent Accounting Pronouncements | |
There are no recent accounting pronouncements that are expected to have an effect on the Company’s condensed consolidated interim financial statements. | |
Inventory_net
Inventory, net | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory, net | ' | |||||||
9. Inventory, net | ||||||||
Inventory is stated at the lower of cost or market using the first-in first-out method and consists entirely of finished goods. The Company’s inventory as of September 30, 2013 and December 31, 2012 was approximately as follows: | ||||||||
Unaudited | Audited | |||||||
September 30, 2013 | December 31, 2012 | |||||||
Total Gross Inventory, Finished Goods | $ | 565,000 | $ | 581,000 | ||||
Less: Inventory reserve | -274,000 | -269,000 | ||||||
Total Inventory | $ | 291,000 | $ | 312,000 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
10. Commitments and Contingencies | |
Manufacturing and Suppliers | |
The Company has not and does not intend in the near future, to manufacture any of its products and components. With regard to the OLpūr MD190 and MD220, on June 27, 2011, the Company entered into a License Agreement, effective July 1, 2011, with Bellco S.r.l., an Italy-based supplier of hemodialysis and intensive care products, for the manufacturing, marketing and sale of our patented mid-dilution dialysis filters (MD 190, MD 220), referred to herein as the Products. Under the agreement, Nephros granted Bellco a license to manufacture, market and sell the Products under its own name, label and CE mark in Italy, France, Belgium, Spain and Canada on an exclusive basis, and to do the same on a non-exclusive basis in the United Kingdom and Greece and, upon the Company’s written approval, other European countries where the Company does not sell the Products as well as non-European countries (referred to as the “Territory”). | |
In exchange for the rights granted to it under the Bellco License Agreement through December 31, 2014, Bellco agreed to pay Nephros installment payments of €500,000, €750,000, €600,000 on July 1, 2011, January 15, 2012 and January 15, 2013, respectively. Such installment payments, herein referred to as the Installment Payments, are Bellco’s sole financial obligations through December 31, 2014. All payments have been received. Beginning on January 1, 2015 through and including December 31, 2016, Bellco will pay Nephros a royalty based on the number of units of Products sold per year in the Territory as follows: for the first 103,000 units sold, Bellco will pay €4.50 per unit; thereafter, Bellco will pay €4.00 per unit. Bellco must meet minimum sales targets of 15,000 units in each quarter of 2015 and 2016. If Bellco fails to meet a quarterly minimum, the license in Italy, France, Belgium, Spain and Canada will, at our discretion, convert to a non-exclusive one. All sums payable under the agreement will be paid in Euros, as adjusted to account for currency exchange fluctuations between the Euro and the U.S. dollar that occur between July 1, 2011, the effective date of the agreement, and the date of payment. | |
License and Supply Agreement | |
On April 23, 2012, the Company entered into a License and Supply Agreement (the “License and Supply Agreement”) with Medica S.p.A. (“Medica”), an Italy-based medical product manufacturing company, for the marketing and sale of certain filtration products based upon Medica’s proprietary Medisulfone ultrafiltration technology in conjunction with the Company’s filtration products (collectively, the “Filtration Products”), and to engage in an exclusive supply arrangement for the Filtration Products. Under the License and Supply Agreement, Medica granted to the Company an exclusive license, with right of sublicense, to market, promote, distribute, offer for sale and sell the Filtration Products worldwide, excluding Italy for the first three years, during the term of the License and Supply Agreement. In addition, the Company granted to Medica an exclusive license under the Company’s intellectual property to make the Filtration Products during the term of the License and Supply Agreement. In exchange for the rights granted, the Company has agreed to make minimum annual aggregate purchases from Medica of €300,000, €500,000 and €750,000 for the years 2012, 2013 and 2014, respectively. For the nine months ended September 30, 2013, the Company’s aggregate purchase commitments totaled approximately €477,000. For calendar years thereafter, annual minimum amounts will be mutually agreed upon between Medica and the Company. | |
As consideration for the license and other rights granted to the Company, the Company was required to pay Medica installment payments of €500,000 and €1,000,000 on April 23, 2012 and January 25, 2013, respectively. As of September 30, 2013, all payments due have been paid to Medica. The final payment of €400,000 was made on May 23, 2013. As further consideration for the license and other rights granted to the Company, the Company granted Medica options to purchase 300,000 shares of the Company’s common stock. The fair market value of these stock options was approximately $273,000 at the time of their issuance, calculated as described in Note 4, Stock-Based Compensation. The fair market value of the options has been capitalized as a long-term intangible asset along with the total installment payments described. Other long-term assets on the condensed consolidated interim balance sheet as of September 30, 2013 is approximately $1,947,000, net of $303,000 accumulated amortization, and is related to the License and Supply Agreement. The asset is being amortized as an expense over the life of the agreement. Approximately $162,000 has been charged to amortization expense for the nine months ended September 30, 2013 on the condensed consolidated interim statement of operations and comprehensive loss. Approximately $53,000 of amortization expense will be recognized in the remainder of the year ended December 31, 2013 and approximately $210,000 will be recognized in each of the years ended 2014 and 2015, respectively. In addition, for the period beginning April 23, 2014 through December 31, 2022, the Company will pay Medica a royalty rate of 3% of net sales of the Filtration Products sold, subject to reduction as a result of a supply interruption pursuant to the terms of the License and Supply Agreement. The term of the License and Supply Agreement commenced on April 23, 2012 and continues in effect through December 31, 2022, unless earlier terminated by either party in accordance with the terms of the License and Supply Agreement. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
11. Subsequent Event | |
Product Recall | |
On October 30, 2013, the Company filed a Current Report on Form 8-K announcing the voluntary recalls of its point of use (POU) and DSU in-line ultrafilters used in hospital water treatment applications. As a result, the Company has recalled all production lots of its POU filters, and also requested that customers remove and discard certain labeling/promotional materials for the products. In addition, the Company also requested, for the DSU in-line ultrafilter, that customers remove and discard certain labeling/promotional materials for the product. These voluntary recalls do not affect the Company’s dialysis products. The condensed consolidated interim financial statements for the period ended September 30, 2013 include product revenues and cost of goods sold adjustments of approximately $127,000 and $27,000, respectively, reflecting estimates of the financial impact of product recalled notified to the Company. The Company is unable to predict at this time what additional effect this recall might have on its business, financial condition, future prospects or reputation or whether the Company may be subject to future actions from the U.S. Food and Drug Administration. | |
November 12, 2013 Senior Secured Note | |
On November 12, 2013, we issued a senior secured note to Lambda Investors LLC in the principal amount of $1.5 million. The note bears interest at the rate of 12% per annum and matures on May 12, 2014, at which time all principal and accrued interest will be due. We have agreed to prepay amounts due under the note with the cash proceeds from (a) a rights offering, (b) any other equity or debt financing, or (c) the issuance or incurrence of any other indebtedness or the sale of any assets outside the ordinary course of business, in each case prior to the maturity date. If we do not pay principal and interest under the note when due, the interest rate increases to 16% per annum. In addition, we have undertaken to conduct a $2.75 million rights offering of common stock. We expect the offering price will be $0.30 per share. All of our stockholders and warrantholders will be eligible to participate in the offering on a pro rata basis based upon their proportionate ownership of our common stock, calculated on an as converted to common stock, fully-diluted basis. In connection with the note and the rights offering, we have agreed to pay Lambda Investors an 8%, or $120,000, sourcing/transaction fee. In addition, we will pay Lambda Investors’ legal fees and other expenses incurred in connection with the note and rights offering in the amount of $75,000. The warrants held by Lambda Investors have an exercise price of $0.40 per share and certain warrants have full ratchet anti-dilution protection. The full ratchet anti-dilution protection for certain warrants will be triggered in connection with the rights offering as the $0.30 per share price is less than the $0.40 exercise price for these warrants. In connection with the proposed rights offering, the Company agreed to amend the expiration date of the existing warrants held by Lambda Investors from March 10, 2017 to the date which is the five year anniversary of the closing of the rights offering. Subject to the satisfaction of certain conditions, Lambda Investors has advised us that it intends to exercise its basic subscription privilege in full. To the extent that after the closing of the rights offering there still remain unsubscribed shares, Lambda Investors will have the right, at its option, to purchase any or all such remaining unsubscribed shares within ten days of the closing of the rights offering. In connection with the rights offering, we will file a registration statement on Form S-1, as may be amended, with the Securities and Exchange Commission. | |
Concentration_of_Credit_Risk_T
Concentration of Credit Risk (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Sales Revenue [Member] | ' | ||||||||
Schedules Of Concentration Of Risk, By Risk Factor | ' | ||||||||
For the nine months ended September 30, 2013 and 2012, the following customers accounted for the following percentages of the Company’s sales, respectively. | |||||||||
Customer | 2013 | 2012 | |||||||
A | 31 | % | 18 | % | |||||
B | 36 | % | 36 | % | |||||
C | 16 | % | 15 | % | |||||
Accounts Receivable [Member] | ' | ||||||||
Schedules Of Concentration Of Risk, By Risk Factor | ' | ||||||||
As of September 30, 2013 and December 31, 2012, the following customers accounted for the following percentages of the Company’s accounts receivable, respectively. | |||||||||
Customer | 2013 | 2012 | |||||||
A | 57 | % | 4 | % | |||||
B | 31 | % | 2 | % | |||||
C | - | % | 85 | % | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Stock-Based Compensation [Abstract] | ' | ||||
Schedule Of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | ' | ||||
The following assumptions were used for options granted for the nine months ended September 30, 2013: | |||||
Nine Months | |||||
Ended | |||||
September 30, 2013 | |||||
Risk-free interest rate | 1.09-1.22 | % | |||
Volatility | 127.46 - 131.79 | % | |||
Expected dividend yield | 0 | % | |||
Expected term | 5.75 - 6.25 yrs | ||||
Loss_per_Common_Share_Tables
Loss per Common Share (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Loss Per Common Share [Abstract] | ' | |||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | |||||||
The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Shares underlying warrants outstanding | 13,888,262 | 15,325,943 | ||||||
Shares underlying options outstanding | 2,380,644 | 2,294,714 | ||||||
Unvested restricted stock | 150,423 | - | ||||||
Inventory_net_Tables
Inventory, net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule Of Inventory, Current | ' | |||||||
Inventory is stated at the lower of cost or market using the first-in first-out method and consists entirely of finished goods. The Company’s inventory as of September 30, 2013 and December 31, 2012 was approximately as follows: | ||||||||
Unaudited | Audited | |||||||
September 30, 2013 | December 31, 2012 | |||||||
Total Gross Inventory, Finished Goods | $ | 565,000 | $ | 581,000 | ||||
Less: Inventory reserve | -274,000 | -269,000 | ||||||
Total Inventory | $ | 291,000 | $ | 312,000 | ||||
Basis_of_Presentation_and_Goin1
Basis of Presentation and Going Concern (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||
Mar. 04, 2013 | 22-May-13 | Apr. 17, 2013 | Feb. 28, 2013 | Mar. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 04, 2013 | Nov. 12, 2013 | Oct. 30, 2013 | Apr. 17, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Warrant [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | |||||||||||
Product Recall [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||||||||
Senior Notes [Member] | |||||||||||||||
Basis Of Presentation And Going Concern [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | ' | ($611,000) | ($853,000) | ($2,523,000) | ($2,164,000) | ' | ' | ' | ' | ' | ' |
Offering price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 | ' | ' |
Senior notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | 3,000,000 | 3,000,000 | ' | ' | 206,000 | ' | ' | 2,771,000 | 0 | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | 12.00% |
Maturity date | ' | ' | ' | 4-Aug-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12-May-14 |
Debt instrument rights offering description | ' | ' | 17-May-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares available for purchase per each subscription | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.18776 | ' | ' |
Sourcing and transaction fee percentage | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sourcing and transaction fee | ' | 104,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal fees and other expenses | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of secured debt | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of senior debt | ' | 1,300,000 | ' | ' | ' | ' | ' | 1,300,000 | 0 | ' | ' | ' | ' | ' | ' |
Accrued interest | ' | 46,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales Revenue, Goods, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 127,000 | ' | ' | ' |
Cost of Goods Sold, Total | ' | ' | ' | ' | ' | 189,000 | 191,000 | 610,000 | 448,000 | ' | ' | 27,000 | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 |
Debt Instrument, Interest Rate, Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% |
Rights Offering Of Common Stock ,Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,750,000 | ' | ' | ' | ' |
Offering Price Per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.30 | ' | ' | ' | ' |
Transaction Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 |
Percentage Of Sourcing Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% |
Legal Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $75,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | ' | 0.4 | ' | ' | ' | ' | ' | ' | ' | ' | 0.4 | ' |
Concentration_of_Credit_Risk_D
Concentration of Credit Risk (Details) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Sales Revenue [Member] | Sales Revenue [Member] | Sales Revenue [Member] | Sales Revenue [Member] | Sales Revenue [Member] | Sales Revenue [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |
Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Customer C [Member] | Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Customer C [Member] | |
Concentration Of Credit Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | 31.00% | 18.00% | 36.00% | 36.00% | 16.00% | 15.00% | 57.00% | 4.00% | 31.00% | 2.00% | 0.00% | 85.00% |
Revenue_Recognition_Details_Te
Revenue Recognition (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 9 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | License Agreement [Member] | License Agreement [Member] | |
Bellco [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' |
Deferred revenue | ' | ' | $878,000 | $1,580,000 |
Revenue recognized | $176,000 | $702,000 | ' | $535,000 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details Textual) (USD $) | 1 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
Aug. 20, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 15, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Mr. Kochanski [Member] | Mr. Kochanski [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | ||||
Restricted Stock [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Restricted Stock [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options granted in period | ' | 176,875 | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' |
Fair value of stock-based awards granted during period, approximately | ' | $96,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncash stock-based compensation, including stock options and restricted stock | ' | 401,000 | 335,000 | ' | ' | 53,000 | 275,000 | 314,000 | 48,000 | 25,000 | 21,000 |
Unrecognized share based compensation cost | ' | 832,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining requisite service period for unrecognized compensation cost, years | ' | '2 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected recognition of unrecognized compensation costs due in current year | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected recognition of unrecognized compensation costs due in one year | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected recognition of unrecognized compensation costs due in two years | ' | 38.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected recognition of unrecognized compensation costs due in three years | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected Recognition Of Unrecognized Compensation Costs Due In Four Years | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, shares, restricted stock award, gross | 28,329 | 339,028 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee service share-based compensation, non vested awards, total compensation cost not yet recognized, share-based awards other than options | ' | 14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | ' | ' | ' | 90,945 | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | ' | ' | ' | 45,929 | ' | ' | ' | ' | ' | ' | ' |
Restricted Stock Award, Forfeitures, Dividends | ' | 43,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Total | ' | 217,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock issued to settle liability | ' | 116,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | $300,000 | $335,000 | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected dividend yield | 0.00% |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate | 1.22% |
Volatility | 131.79% |
Expected term | '6 years 3 months |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate | 1.09% |
Volatility | 127.46% |
Expected term | '5 years 9 months |
Warrants_Details_Textual
Warrants (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | ||
Mar. 04, 2013 | 22-May-13 | Mar. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | |
Warrants [Line Items] | ' | ' | ' | ' | ' |
Class of warrant or right exercise price of warrants or rights | ' | ' | 0.4 | ' | ' |
Warrants exercised | ' | ' | 14,879,708 | 2,248,222 | ' |
Stock issued during period, shares, new issues | ' | ' | 687,793 | ' | ' |
Proceeds from issuance of common stock | $3,000,000 | $3,000,000 | $206,000 | $2,771,000 | $0 |
Incremental fair value of inducement | ' | ' | ' | 14,000 | ' |
Warrant [Member] | ' | ' | ' | ' | ' |
Warrants [Line Items] | ' | ' | ' | ' | ' |
Stock issued during period, shares, new issues | ' | ' | ' | 103,916 | ' |
Rights Offering [Member] | ' | ' | ' | ' | ' |
Warrants [Line Items] | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | ' | ' | ' | $42,000 | ' |
Amended [Member] | ' | ' | ' | ' | ' |
Warrants [Line Items] | ' | ' | ' | ' | ' |
Class of warrant or right exercise price of warrants or rights | ' | ' | 0.3 | ' | ' |
Comprehensive_Income_Loss_Deta
Comprehensive Income (Loss) (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Comprehensive loss | ($611) | ($836) | ($2,525) | ($2,157) |
Loss_per_Common_Share_Details
Loss per Common Share (Details) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded anti-dilutive stock options and warrants | 13,888,262 | 15,325,943 |
Employee Stock Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded anti-dilutive stock options and warrants | 2,380,644 | 2,294,714 |
Restricted Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded anti-dilutive stock options and warrants | 150,423 | 0 |
Inventory_net_Details
Inventory, net (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventory [Line Items] | ' | ' |
Total Gross Inventory, Finished Goods | $565,000 | $581,000 |
Less: Inventory reserve | -274,000 | -269,000 |
Total Inventory | $291,000 | $312,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jan. 15, 2013 | Jan. 15, 2012 | Jul. 01, 2011 | Sep. 30, 2013 | 23-May-13 | Jan. 25, 2013 | Apr. 23, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | Bellco [Member] | Bellco [Member] | Bellco [Member] | Bellco [Member] | Medica S.p.A [Member] | Medica S.p.A [Member] | Medica S.p.A [Member] | Medica S.p.A [Member] | Medica S.p.A [Member] | |
EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | USD ($) | EUR (€) | |||||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License agreement revenue paid year one | ' | ' | ' | ' | ' | € 500,000 | ' | ' | ' | ' | ' | ' |
License agreement revenue paid year two | ' | ' | ' | ' | 750,000 | ' | ' | ' | ' | ' | ' | ' |
License agreement revenue paid in current year | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units under first tier royalty receivable | ' | ' | ' | ' | ' | ' | 103,000 | ' | ' | ' | ' | ' |
First tier royalty per unit | ' | ' | ' | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' |
Second tier royalty per unit | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' |
Minimum quarterly unit sales targets | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' |
License agreement product purchases in year one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 |
License agreement product purchases in year two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 |
License agreement product purchases in year three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000 |
License agreement first installment payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' |
License agreement second installment payment | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' |
License agreement final installment payment | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' |
License agreement options to purchase shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' |
Purchase commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 477,000 |
Fair value of stock options granted to Medica | 0 | 273,000 | ' | ' | ' | ' | ' | ' | ' | ' | 273,000 | ' |
Other assets, net of accumulated amortization | 1,947,000 | ' | 2,109,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization | 303,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of Other Deferred Charges | 162,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, remainder of year | 53,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, years two and three | $210,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty rate | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Event_Details_Textu
Subsequent Event (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 04, 2013 | Mar. 31, 2011 | Nov. 12, 2013 | Oct. 30, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||
Product Recall [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | |||||||||
Senior Notes [Member] | |||||||||||
Sales Revenue, Goods, Gross | ' | ' | ' | ' | ' | ' | ' | ' | $127,000 | ' | ' |
Cost of Goods Sold, Total | ' | 189,000 | 191,000 | 610,000 | 448,000 | ' | ' | ' | 27,000 | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | 12.00% |
Debt Instrument, Maturity Date | 4-Aug-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12-May-14 |
Debt Instrument, Interest Rate, Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% |
Rights Offering Of Common Stock ,Shares | ' | ' | ' | ' | ' | ' | ' | 2,750,000 | ' | ' | ' |
Offering Price Per share | ' | ' | ' | ' | ' | ' | ' | $0.30 | ' | ' | ' |
Transaction Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 |
Legal Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $75,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | ' | ' | ' | 0.4 | ' | ' | 0.4 | ' |
Percentage Of Sourcing Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% |