Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 12, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'NEPHROS INC | ' |
Entity Central Index Key | '0001196298 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'NEPH | ' |
Entity Common Stock, Shares Outstanding | ' | 25,247,120 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $225 | $579 |
Accounts receivable | 113 | 122 |
Inventory, less allowances of $92 at June 30, 2014 and $365 at December 31, 2013 | 163 | 162 |
Prepaid expenses and other current assets | 59 | 125 |
Total current assets | 560 | 988 |
Property and equipment, net | 3 | 7 |
Other assets, net of accumulated amortization | 1,789 | 1,894 |
Total assets | 2,352 | 2,889 |
Current liabilities: | ' | ' |
Senior secured note, net of debt discount of $142 at December 31, 2013 | 0 | 1,358 |
Accounts payable | 1,030 | 1,073 |
Accrued expenses | 233 | 365 |
Deferred revenue | 421 | 703 |
Total current liabilities | 1,684 | 3,499 |
Lon-term portion of deferred revenue | 452 | 0 |
Total liabilities | 2,136 | 3,499 |
Commitments and Contingencies (Note 13) | ' | ' |
Stockholders' equity (deficit): | ' | ' |
Preferred stock, $.001 par value; 5,000,000 shares authorized at June 30, 2014 and December 31, 2013; no shares issued and outstanding at June 30, 2014 and December 31, 2013 | 0 | 0 |
Common stock, $.001 par value; 90,000,000 shares authorized at June 30, 2014 and December 31, 2013; 25,226,104 and 18,082,043 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively. | 25 | 18 |
Additional paid-in capital | 102,761 | 100,526 |
Accumulated other comprehensive income | 72 | 74 |
Accumulated deficit | -102,642 | -101,228 |
Total stockholders’ equity (deficit) | 216 | -610 |
Total liabilities and stockholders’ equity (deficit) | $2,352 | $2,889 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Inventory, allowances | $92 | $365 |
Senior secured note, net of debt discount | ' | $142 |
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 | 25,226,104 | 18,082,043 |
Common stock, shares outstanding | 25,226,104 | 18,082,043 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net revenues: | ' | ' | ' | ' |
Product revenues | $248 | $391 | $467 | $737 |
License revenues | 193 | 184 | 448 | 359 |
Total net revenues | 441 | 575 | 915 | 1,096 |
Cost of goods sold | 142 | 226 | 248 | 421 |
Gross margin | 299 | 349 | 667 | 675 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 180 | 259 | 343 | 483 |
Depreciation and amortization | 55 | 58 | 110 | 114 |
Selling, general and administrative | 700 | 660 | 1,412 | 1,714 |
Total operating expenses | 935 | 977 | 1,865 | 2,311 |
Loss from operations | -636 | -628 | -1,198 | -1,636 |
Interest expense | -17 | -24 | -70 | -47 |
Gain on sale of equipment | 0 | 0 | 0 | 2 |
Amortization of debt discount | 0 | 0 | -142 | -204 |
Other income (expense) | -1 | -19 | -4 | -27 |
Net loss | -654 | -671 | -1,414 | -1,912 |
Other comprehensive loss, foreign currency translation adjustments | -1 | -2 | -2 | -2 |
Total comprehensive loss | ($655) | ($673) | ($1,416) | ($1,914) |
Net loss per common share, basic and diluted | ($0.03) | ($0.05) | ($0.06) | ($0.14) |
Weighted average common shares outstanding, basic and diluted | 25,166,752 | 14,556,050 | 22,004,712 | 13,289,703 |
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, 2013 | ($610) | $18 | $100,526 | $74 | ($101,228) |
Balance, shares at Dec. 31, 2013 | ' | 18,082,043 | ' | ' | ' |
Net loss | -1,414 | ' | ' | ' | -1,414 |
Net unrealized losses on foreign currency translation | -2 | ' | ' | -2 | ' |
Shareholder rights offering, net | 2,013 | 7 | 2,006 | ' | ' |
Shareholder rights offering, net, shares | ' | 7,140,823 | ' | ' | ' |
Exercise of warrants | 2 | ' | 2 | ' | ' |
Exercise of warrants, shares | ' | 3,238 | ' | ' | ' |
Noncash stock-based compensation | 227 | ' | 227 | ' | ' |
Balance at Jun. 30, 2014 | $216 | $25 | $102,761 | $72 | ($102,642) |
Balance, shares at Jun. 30, 2014 | ' | 25,226,104 | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' |
Net loss | ($1,414) | ($1,912) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation of property and equipment | 5 | 5 |
Amortization of other assets | 105 | 109 |
Noncash stock-based compensation | 227 | 248 |
Amortization of debt discount | 142 | 204 |
Inventory reserve | 31 | 0 |
Loss on foreign currency transactions | 4 | 3 |
Gain on sale of equipment | 0 | -2 |
(Increase) decrease in operating assets: | ' | ' |
Accounts receivable | 9 | 577 |
Inventory | -32 | 166 |
Prepaid expenses and other current assets | 66 | 37 |
Increase (decrease) in operating liabilities: | ' | ' |
Accounts payable and accrued expenses | -180 | -316 |
License and supply agreement fee payable | 0 | -1,318 |
Deferred revenue | 170 | -359 |
Net cash used in operating activities | -867 | -2,558 |
Investing activities: | ' | ' |
Proceeds from sale of equipment | 0 | 2 |
Net cash provided by investing activities | 0 | 2 |
Financing activities: | ' | ' |
Proceeds from issuance of common stock, net of equity issuance costs of $128 and $229, respectively | 2,013 | 2,771 |
Proceeds from issuance of senior secured note | 0 | 1,300 |
Proceeds from exercise of warrants | 2 | 239 |
Payment of senior secured note | -1,500 | -1,300 |
Payment of financing costs | 0 | -204 |
Net cash provided by financing activities | 515 | 2,806 |
Effect of exchange rates on cash and cash equivalents | -2 | 1 |
Net increase (decrease) in cash | -354 | 251 |
Cash, beginning of period | 579 | 47 |
Cash, end of period | 225 | 298 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid for income taxes | 4 | 2 |
Cash paid for interest | 54 | 24 |
Restricted stock issued to settle liability | $0 | $77 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Payments of Stock Issuance Costs | $128 | $229 |
Organization_and_Nature_of_Ope
Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2014 | |
Organization and Nature of Operations [Abstract] | ' |
Organization and Nature of Operations | ' |
1. Organization and Nature of Operations | |
Nephros, Inc. (“Nephros” or the “Company”) was incorporated under the laws of the State of Delaware on April 3, 1997. Nephros was founded by health professionals, scientists and engineers affiliated with Columbia University to develop advanced End Stage Renal Disease (“ESRD”) therapy technology and products. The Company has two products in the hemodiafiltration, or HDF, modality to deliver therapy for ESRD patients. These are the OLpūr mid-dilution HDF filter or “dialyzer,” designed expressly for HDF therapy, and the OLpūr H2H HDF module, an add-on module designed to allow the most common types of hemodialysis machines to be used for HDF therapy. In 2009, the Company introduced its Dual Stage Ultrafilter (“DSU”) water filter, which represented a new and complementary product line to the Company’s ESRD therapy business. The DSU incorporates the Company’s unique and proprietary dual stage filter architecture. | |
On June 4, 2003, Nephros International Limited was incorporated under the laws of Ireland as a wholly-owned subsidiary of the Company. In August 2003, the Company established a European Customer Service and financial operations center in Dublin, Ireland. | |
Basis_of_Presentation_and_Goin
Basis of Presentation and Going Concern | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation and Going Concern | ' |
2. 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 should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2014. 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, 2013 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 2014 presentation. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. The more significant estimates used by management relate to the valuation of inventory reserves and the measurement of deferred revenue. 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 six months ended June 30, 2014 and 2013, the Company has incurred net losses of $1,414,000 and $1,912,000, 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. | |
The voluntary recalls of point of use (“POU”) and DSU used in hospital water treatment applications announced on October 30, 2013 and the related circumstances could subject the Company to claims or proceedings by consumers, the Food and Drug Administration (“FDA”) or other regulatory authorities which may adversely impact the Company’s sales and revenues. | |
On March 21, 2014, the Company completed a rights offering which resulted in gross proceeds of $2.1 million. See Note 12, Stockholders’ Equity, for a more detailed discussion of the rights offering. The Company repaid the November 12, 2013 senior secured note issued to Lambda Investors LLC in the principal amount of $1.5 million with a portion of the proceeds from the rights offering. For a more detailed discussion of the terms of the senior secured note, see Note 11, Senior Secured Notes. | |
On February 19, 2014, the Company entered into the First Amendment to License Agreement (the “First Amendment”), by and between the Company and Bellco S.r.l. (“Bellco”), which amends the License Agreement, entered into as of July 1, 2011 by and between the Company and Bellco. Pursuant to the First Amendment, the Company and Bellco agreed to extend the term of the License Agreement through December 31, 2021. In addition, the Company received a total of €450,000 (approximately $612,000) in upfront fees in connection with the First Amendment, half of which was received on February 19, 2014, and the other half of which was received on April 4, 2014. See Note 13, Commitments and Contingencies, for further discussion of, and additional terms related to, the First Amendment. | |
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 | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Concentration Of Credit Risk [Abstract] | ' | |||||
Concentration of Credit Risk | ' | |||||
3. Concentration of Credit Risk | ||||||
For the six months ended June 30, 2014 and 2013, the following customers accounted for the following percentages of the Company’s sales, respectively. | ||||||
Customer | 2014 | 2013 | ||||
A | 59 | % | 33 | % | ||
B | 20 | % | 29 | % | ||
C | 4 | % | 24 | % | ||
As of June 30, 2014 and December 31, 2013, the following customers accounted for the following percentages of the Company’s accounts receivable, respectively. | ||||||
Customer | 2014 | 2013 | ||||
A | 56 | % | 69 | % | ||
B | 35 | % | - | % | ||
C | - | % | 28 | % | ||
Revenue_Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2014 | |
Revenue Recognition [Abstract] | ' |
Revenue Recognition | ' |
4. 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 the Company. Shipments for all products are currently received directly by the Company’s customers. | |
Deferred revenue on the accompanying June 30, 2014 condensed consolidated balance sheet is approximately $ 873,000 and is related to the License Agreement with Bellco, which is being deferred through December 31, 2021, the remainder of the expected obligation period. The Company has recognized approximately $2,203,000 of revenue related to the License Agreement to date and approximately $448,000 for the six months ended June 30, 2014. See Note 13, Commitments and Contingencies, for further discussion of the Bellco License Agreement. | |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Stock-Based Compensation [Abstract] | ' | |||
Stock-Based Compensation | ' | |||
5. 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. | ||||
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 302,519 stock options during the six months ended June 30, 2014 to employees, non-employees, directors and consultants. These stock options vest over a two-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 six months ended June 30, 2014 was approximately $127,000. | ||||
The following assumptions were used for options granted for the six months ended June 30, 2014: | ||||
Assumptions for Option Grants | Six Months | |||
Ended | ||||
June 30, 2014 | ||||
Risk-free interest rate | 1.76 – 1.91 | % | ||
Volatility | 129.2 – 133.4 | % | ||
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 common stock price observations 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 $224,000 and $206,000 for the six months ended June 30, 2014 and 2013, respectively. For the six months ended June 30, 2014, approximately $212,000 and approximately $12,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statement of operations. For the six months ended June 30, 2013, approximately $190,000 and approximately $16,000 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 six months ended June 30, 2014 and 2013, as the Company is in a net operating loss position. As of June 30, 2014, there was approximately $674,000 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 2.1 years. Such amount does not include the effect of future grants of equity compensation, if any. Of the approximately $674,000 of total unrecognized compensation cost, the Company expects to recognize approximately 28% in the remaining interim periods of 2014, approximately 55% in 2015, approximately 15% in 2016 and approximately 2% in 2017. | ||||
Restricted Stock | ||||
Total stock-based compensation expense for the restricted stock grants was approximately $3,000 for the six months ended June 30, 2014 and is included in Selling, General and Administrative expenses on the accompanying condensed consolidated interim statement of operations. As of June 30, 2014, all compensation expense related to the restricted stock awards has been recognized. | ||||
Warrants
Warrants | 6 Months Ended |
Jun. 30, 2014 | |
Warrants [Abstract] | ' |
Warrants | ' |
6. Warrants | |
For the six months ended June 30, 2014, 70,147 warrants were exercised, resulting in proceeds of approximately $2,000 and the issuance of 3,238 shares of the Company’s common stock. | |
Comprehensive_Income_Loss
Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2014 | |
Comprehensive Income (Loss) [Abstract] | ' |
Comprehensive Income (Loss) | ' |
7. Comprehensive Income (Loss) | |
Comprehensive income (loss), as defined in ASC Topic 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. | |
Loss_per_Common_Share
Loss per Common Share | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Loss per Common Share | ' | |||||||
8. Loss per Common Share | ||||||||
In accordance with ASC Topic 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: | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Shares underlying warrants outstanding | 16,819,881 | 13,910,395 | ||||||
Shares underlying options outstanding | 2,424,612 | 2,380,644 | ||||||
Unvested restricted stock | - | 264,770 | ||||||
As a result of the 2014 rights offering, the full ratchet anti-dilution protection for Class D warrants held by Lambda Investors LLC was triggered. The respective warrants are now exercisable for 11,742,100 shares of common stock at an exercise price of $0.30 per share compared to the 8,806,575 shares of common stock and $0.40 exercise price prior to the 2014 rights offering. | ||||||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Recent Accounting Pronouncements | ' |
9. Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, "Revenue from Contracts with Customers," related to revenue recognition. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in prior accounting guidance. ASU 2014-09 provides alternative methods of initial adoption, and it is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is not permitted. The Company is currently reviewing the revised guidance and assessing the potential impact on its consolidated financial statements. | |
Inventory_net
Inventory, net | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory, net | ' | |||||||
10. 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 June 30, 2014 and December 31, 2013 was as follows: | ||||||||
Unaudited | Audited | |||||||
June 30, 2014 | December 31, 2013 | |||||||
Total Gross Inventory, Finished Goods | $ | 255,000 | $ | 527,000 | ||||
Less: Inventory reserve | -92,000 | -365,000 | ||||||
Total Inventory | $ | 163,000 | $ | 162,000 | ||||
During the six months ended June 30, 2014, approximately $66,000 of DSU inventory near expiration or replaced by newer versions and approximately $216,000 related to the POU product recall initiated in 2013 was written off. | ||||||||
Senior_Secured_Notes
Senior Secured Notes | 6 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Senior Secured Notes | ' |
11. Senior Secured Notes | |
On November 12, 2013, the Company issued a senior secured note to Lambda Investors LLC, a major shareholder, in the principal amount of $1.5 million. The note bore interest at the rate of 12% per annum and was scheduled to mature on May 12, 2014, at which time all principal and accrued interest was due. However, the Company paid amounts due under the note, including all accrued interest thereon of $61,000, on March 18, 2014 with the cash proceeds from the rights offering that closed in March 2014. In connection with the note, the Company paid Lambda Investors an 8%, or $120,000, sourcing/transaction fee. In addition, the Company paid Lambda Investors’ legal fees and other expenses incurred in connection with the note in the amount of $75,000. Those payments totaling $195,000 were made on November 12, 2013 and were reflected as a debt discount which was amortized over the term of the senior secured note, of which approximately $53,000 was recognized in the fourth quarter of 2013 and approximately $142,000 was recognized in the first quarter of 2014. | |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2014 | |
Stockholders Equity Note [Abstract] | ' |
Stockholders' Equity | ' |
12. Stockholders’ Equity | |
On January 7, 2014, the Company filed a Registration Statement on Form S-1 in connection with a $2.8 million rights offering. On February 12, 2014, the Company’s Registration Statement on Form S-1 related to the 2014 rights offering was declared effective by the SEC. The 2014 rights offering commenced on February 14, 2014 and expired on March 14, 2014. All of the Company’s stockholders and warrant holders were eligible to participate in the 2014 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 2014 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 January 30, 2014. Each right entitled the holder to purchase 0.28673 of a share of the Company’s common stock at a subscription price of $0.30 per share. The Company rounded up any fractional shares to the nearest whole share. | |
On March 21, 2014, the Company completed the 2014 rights offering that resulted in gross proceeds of $2.1 million. The aggregate net proceeds were approximately $581,000, after deducting the repayment of the November 2013 $1.5 million senior secured note, plus $61,000 of accrued interest thereon, issued to Lambda Investors LLC, the payment of an 8% sourcing transaction fee of $120,000, with respect to the November 2013 senior secured note and an aggregate of $75,000 for reimbursement of Lambda Investors’ legal fees incurred in connection with the November 2013 senior secured note and the 2014 rights offering. The Company issued a total of 7,140,823 shares of common stock to the holders of subscription rights who validly exercised their subscription rights, which represents 77% of the total shares offered in the rights offering. Fees of approximately $128,000 were also incurred related to the 2014 rights offering and were recorded as reduction to equity. | |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
13. Commitments and Contingencies | |
Manufacturing and Suppliers | |
The Company has not and does not intend to in the near future, 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, an Italy-based supplier of hemodialysis and intensive care products, for the manufacturing, marketing and sale of the Company’s 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 our written approval, other European countries where the Company does not sell the Products as well as non-European countries (referred to as the “Territory”). | |
On February 19, 2014, the Company entered into the First Amendment to License Agreement (the “First Amendment”), by and between the Company and Bellco, which amends the License Agreement, entered into as of July 1, 2011 by and between the Company and Bellco. Pursuant to the First Amendment, the Company and Bellco agreed to extend the term of the License Agreement from December 31, 2016 to December 31, 2021. The First Amendment also expands the Territory covered by the License Agreement to include Sweden, Denmark, Norway, Finland, Korea, Mexico, Brazil, China and the Netherlands. The First Amendment further provides new minimum sales targets which, if not satisfied, will, at the discretion of the Company, result in conversion of the license to non-exclusive status. The Company has agreed to reduce the fixed royalty payment payable to the Company for the period beginning on January 1, 2015 through and including December 31, 2021. Beginning on January 1, 2015 through and including December 31, 2021, Bellco will pay the Company a royalty based on the number of units of Products sold per year in the Territory as follows: for the first 125,000 units sold in total, €1.75 (approximately $2.40) per unit; thereafter, €1.25 (approximately $1.71) per unit. In addition, the Company received a total of €450,000 (approximately $612,000) in upfront fees in connection with the First Amendment, half of which was received on February 19, 2014 and the remaining half was received on April 4, 2014. In addition, the First Amendment provides that, in the event that the Company pursues a transaction to sell, assign or transfer all right, title and interest to the licensed patents to a third party, the Company will provide Bellco with written notice thereof and a right of first offer with respect to the contemplated transaction for a period of thirty (30) days. | |
Others_Assets
Others Assets | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Others Assets | ' |
14. Other Assets | |
License and Supply Agreement | |
On April 23, 2012, the Company entered into a License and Supply Agreement (the “Medica 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. The term of the Medica 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 Medica License and Supply Agreement. Under the Medica 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 Medica 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 Medica 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 (approximately $400,000), €500,000 (approximately $700,000) and €750,000 (approximately $1,000,000) for the years 2012, 2013 and 2014, respectively. For the six months ended June 30, 2014, the Company’s aggregate purchase commitments totaled approximately €252,000 (approximately $350,000). 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 paid Medica a total of €1,500,000 (approximately $2,000,000) in three installments: €500,000 (approximately $700,000) on April 23, 2012, €600,000 (approximately $800,000) on February 4, 2013, and €400,000 (approximately $500,000) 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 5, 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 June 30, 2014 is approximately $1,789,000, net of $462,000 accumulated amortization, and is related to the Medica License and Supply Agreement. The asset is being amortized as an expense over the life of the agreement. Approximately $105,000 has been charged to amortization expense for the six months ended June 30, 2014 on the condensed consolidated interim statement of operations and comprehensive loss. Approximately $105,000 of amortization expense will be recognized in the remainder of the year ended December 31, 2014 and approximately $210,000 will be recognized in each of the years ended 2015 and 2016, 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 Medica License and Supply Agreement. For the six months ended June 30, 2014, the Company has accrued approximately $4,000 as a result of royalty payments due to Medica for the period April 23, 2014 through June 30, 2014, based on net Filtration Product sales of approximately $148,000. | |
Basis_of_Presentation_and_Goin1
Basis of Presentation and Going Concern (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Interim Financial Information | ' |
Interim Financial Information | |
The accompanying unaudited condensed consolidated interim financial statements of Nephros, Inc. and its wholly owned subsidiary, Nephros International Limited should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2014. 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, 2013 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 2014 presentation. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. The more significant estimates used by management relate to the valuation of inventory reserves and the measurement of deferred revenue. Actual results could differ materially from those estimates. | |
Going Concern and Management's Response | ' |
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 six months ended June 30, 2014 and 2013, the Company has incurred net losses of $1,414,000 and $1,912,000, 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. | |
The voluntary recalls of point of use (“POU”) and DSU used in hospital water treatment applications announced on October 30, 2013 and the related circumstances could subject the Company to claims or proceedings by consumers, the Food and Drug Administration (“FDA”) or other regulatory authorities which may adversely impact the Company’s sales and revenues. | |
On March 21, 2014, the Company completed a rights offering which resulted in gross proceeds of $2.1 million. See Note 12, Stockholders’ Equity, for a more detailed discussion of the rights offering. The Company repaid the November 12, 2013 senior secured note issued to Lambda Investors LLC in the principal amount of $1.5 million with a portion of the proceeds from the rights offering. For a more detailed discussion of the terms of the senior secured note, see Note 11, Senior Secured Notes. | |
On February 19, 2014, the Company entered into the First Amendment to License Agreement (the “First Amendment”), by and between the Company and Bellco S.r.l. (“Bellco”), which amends the License Agreement, entered into as of July 1, 2011 by and between the Company and Bellco. Pursuant to the First Amendment, the Company and Bellco agreed to extend the term of the License Agreement through December 31, 2021. In addition, the Company received a total of €450,000 (approximately $612,000) in upfront fees in connection with the First Amendment, half of which was received on February 19, 2014, and the other half of which was received on April 4, 2014. See Note 13, Commitments and Contingencies, for further discussion of, and additional terms related to, the First Amendment. | |
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_T
Concentration of Credit Risk (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Sales Revenue [Member] | ' | |||||
Concentration Risk [Line Items] | ' | |||||
Schedules Of Concentration Of Risk, By Risk Factor | ' | |||||
For the six months ended June 30, 2014 and 2013, the following customers accounted for the following percentages of the Company’s sales, respectively. | ||||||
Customer | 2014 | 2013 | ||||
A | 59 | % | 33 | % | ||
B | 20 | % | 29 | % | ||
C | 4 | % | 24 | % | ||
Accounts Receivable [Member] | ' | |||||
Concentration Risk [Line Items] | ' | |||||
Schedules Of Concentration Of Risk, By Risk Factor | ' | |||||
As of June 30, 2014 and December 31, 2013, the following customers accounted for the following percentages of the Company’s accounts receivable, respectively. | ||||||
Customer | 2014 | 2013 | ||||
A | 56 | % | 69 | % | ||
B | 35 | % | - | % | ||
C | - | % | 28 | % | ||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
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 six months ended June 30, 2014: | ||||
Assumptions for Option Grants | Six Months | |||
Ended | ||||
June 30, 2014 | ||||
Risk-free interest rate | 1.76 – 1.91 | % | ||
Volatility | 129.2 – 133.4 | % | ||
Expected dividend yield | 0 | % | ||
Expected term | 5.75 – 6.25 yrs | |||
Loss_per_Common_Share_Tables
Loss per Common Share (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per 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: | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Shares underlying warrants outstanding | 16,819,881 | 13,910,395 | ||||||
Shares underlying options outstanding | 2,424,612 | 2,380,644 | ||||||
Unvested restricted stock | - | 264,770 | ||||||
Inventory_net_Tables
Inventory, net (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current | ' | |||||||
The Company’s inventory as of June 30, 2014 and December 31, 2013 was as follows: | ||||||||
Unaudited | Audited | |||||||
June 30, 2014 | December 31, 2013 | |||||||
Total Gross Inventory, Finished Goods | $ | 255,000 | $ | 527,000 | ||||
Less: Inventory reserve | -92,000 | -365,000 | ||||||
Total Inventory | $ | 163,000 | $ | 162,000 | ||||
Basis_of_Presentation_and_Goin2
Basis of Presentation and Going Concern (Details Textual) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 04, 2014 | Mar. 21, 2014 | Feb. 19, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 12, 2013 | |
EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | Lambda Investors [Member] | |
USD ($) | |||||||||
Basis Of Presentation And Going Concern [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ($654,000) | ($671,000) | ($1,414,000) | ' | ($1,912,000) | ' |
Senior notes issued | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 |
Upfront Fees And Connection Of First Amendment | 225,000 | ' | 225,000 | ' | ' | 612,000 | 450,000 | ' | ' |
Proceeds from issuance of common stock | ' | $2,100,000 | ' | ' | ' | $2,013,000 | ' | $2,771,000 | ' |
Concentration_of_Credit_Risk_D
Concentration of Credit Risk (Details) | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
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 | 59.00% | 33.00% | 20.00% | 29.00% | 4.00% | 24.00% | 56.00% | 69.00% | 35.00% | 0.00% | 0.00% | 28.00% |
Revenue_Recognition_Details_Te
Revenue Recognition (Details Textual) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Deferred Revenue Arrangement [Line Items] | ' |
Deferred revenue | $873,000 |
Bellco [Member] | ' |
Deferred Revenue Arrangement [Line Items] | ' |
Deferred revenue | 2,203,000 |
Revenue recognized | $448,000 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected dividend yield | 0.00% |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate | 1.76% |
Volatility | 129.20% |
Expected term | '5 years 9 months |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate | 1.91% |
Volatility | 133.40% |
Expected term | '6 years 3 months |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details Textual) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | $224,000 | $206,000 |
Shares, Options granted | 302,519 | ' |
Unrecognized compensation cost related to non-vested options | 674,000 | ' |
Weighted average remaining requisite service period for unrecognized compensation cost | '2 years 1 month 6 days | ' |
Noncash stock-based compensation | 227,000 | 248,000 |
Share-based Compensation, Total | 3,000 | ' |
Expected recognition of unrecognized compensation costs due in current year | 28.00% | ' |
Expected recognition of unrecognized compensation costs due in one year | 55.00% | ' |
Expected recognition of unrecognized compensation costs due in two years | 15.00% | ' |
Expected recognition of unrecognized compensation costs due in three years | 2.00% | ' |
Stock Granted, Value, Share-based Compensation, Gross | 127,000 | ' |
Employee Stock Option [Member] | Selling, General and Administrative Expenses [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Noncash stock-based compensation | 212,000 | 190,000 |
Employee Stock Option [Member] | Research and Development Expense [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Noncash stock-based compensation | $12,000 | $16,000 |
Warrants_Details_Textual
Warrants (Details Textual) (USD $) | 0 Months Ended | 6 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 21, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
Warrants [Line Items] | ' | ' | ' |
Warrants exercised | ' | 70,147 | ' |
Proceeds from issuance of common stock | $2,100 | $2,013 | $2,771 |
Stock issued during period, shares, new issues | ' | 3,238 | ' |
Loss_per_Common_Share_Details
Loss per Common Share (Details) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Stock options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded anti-dilutive stock options and warrants | 2,424,612 | 2,380,644 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded anti-dilutive stock options and warrants | 16,819,881 | 13,910,395 |
Unvested restricted stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Excluded anti-dilutive stock options and warrants | 0 | 264,770 |
Loss_per_Common_Share_Details_
Loss per Common Share (Details Textual) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Mar. 14, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Class Of Warrant Or Rights Exercisable | 11,742,100 | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.30 | $0.30 |
Prior to Right Offering [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Class Of Warrant Or Rights Exercisable | 8,806,575 | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.40 | ' |
Inventory_net_Details
Inventory, net (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ' | ' |
Total Gross Inventory, Finished Goods | $255,000 | $527,000 |
Less: Inventory reserve | -92,000 | -365,000 |
Total Inventory | $163,000 | $162,000 |
Inventory_net_Details_Textual
Inventory, net (Details Textual) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
DSU | ' |
Inventory Write-down | $66,000 |
POU | ' |
Inventory Write-down | $216,000 |
Senior_Secured_Notes_Details_T
Senior Secured Notes (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 12, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 12, 2013 | |
Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | |||||
Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | $1,500,000 |
Debt instrument, interest rate, stated percentage | ' | ' | ' | ' | ' | ' | ' | 12.00% |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | 12-May-14 |
Percentage of sourcing fees | ' | ' | 8.00% | ' | ' | ' | ' | 8.00% |
Transaction fees | ' | ' | ' | ' | ' | ' | ' | 120,000 |
Legal fees | ' | ' | ' | ' | 75,000 | ' | ' | ' |
Amortization of debt discount (premium) | 0 | 0 | 142,000 | 204,000 | 195,000 | 142,000 | 53,000 | ' |
Repayments Of Accrued Interest On Senior Secured Note | ' | ' | $61,000 | ' | ' | ' | ' | ' |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 6 Months Ended | |||
Jun. 30, 2014 | Mar. 21, 2014 | Mar. 14, 2014 | Jan. 07, 2014 | |
Stockholder Equity Note [Line Items] | ' | ' | ' | ' |
Authorized value of rights offering | ' | ' | ' | $2,800,000 |
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | ' | ' | 0.28673 | ' |
Class of warrant or right issued gross value received | ' | 2,100,000 | ' | ' |
Class of warrant or right issued net value received | ' | 581,000 | ' | ' |
Repayments of senior secured note | 1,500,000 | ' | ' | ' |
Represents repayment of accrued interest on senior secured note | 61,000 | ' | ' | ' |
Percentage Of Sourcing Fees | 8.00% | ' | ' | ' |
Debt Instrument, Fee Amount | 120,000 | ' | ' | ' |
Reimbursement of legal fee | 75,000 | ' | ' | ' |
Percentage of Total Shares Offered in Rights Offering | 77.00% | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $0.30 | ' | $0.30 | ' |
Right Offering Fee Amount | $128,000 | ' | ' | ' |
Common Stock [Member] | ' | ' | ' | ' |
Stockholder Equity Note [Line Items] | ' | ' | ' | ' |
Stock Issued During Period Shares Shareholder Rights Offering | 7,140,823 | ' | ' | ' |
Commitment_and_Contingencies_D
Commitment and Contingencies (Details Textual) | 0 Months Ended | 1 Months Ended | 6 Months Ended | |||
Apr. 04, 2014 | Feb. 19, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
EUR (€) | EUR (€) | USD ($) | EUR (€) | Bellco [Member] | Bellco [Member] | |
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Number of units under first tier royalty receivable | ' | ' | ' | ' | 125,000 | 125,000 |
First tier royalty per unit | ' | ' | ' | ' | 2.4 | 1.75 |
Second tier royalty per unit | ' | ' | ' | ' | 1.71 | 1.25 |
Upfront Fees And Connection Of First Amendment | € 225,000 | € 225,000 | $612,000 | € 450,000 | ' | ' |
Other_Assets_Details_Textual
Other Assets (Details Textual) | 2 Months Ended | 6 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 6 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | 23-May-13 | 23-May-13 | Feb. 04, 2013 | Feb. 04, 2013 | Apr. 23, 2012 | Apr. 23, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | USD ($) | USD ($) | 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] | Medica S.p.A [Member] | Medica S.p.A [Member] | Medica S.p.A [Member] | |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | ||||
Other Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License agreement product purchases in year one | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 | € 300,000 |
License agreement product purchases in year two | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 500,000 |
License agreement product purchases in year three | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 750,000 |
License agreement first installment payment | ' | ' | ' | ' | ' | ' | ' | 700,000 | 500,000 | 2,000,000 | 1,500,000 |
License agreement second installment payment | ' | ' | ' | ' | ' | 800,000 | 600,000 | ' | ' | ' | ' |
License agreement final installment payment | ' | ' | ' | 500,000 | 400,000 | ' | ' | ' | ' | ' | ' |
License agreement options to purchase shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 300,000 |
Purchase commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000 | 252,000 |
Fair value of stock options granted to Medica | ' | ' | ' | ' | ' | ' | ' | ' | ' | 273,000 | ' |
Other assets, net of accumulated amortization | 1,789,000 | 1,789,000 | 1,894,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization | 462,000 | 462,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of Other Deferred Charges | ' | 105,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty rate | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, remainder of year | 105,000 | 105,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 210,000 | 210,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 212,000 | 212,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued royalty payments | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Filtration product sales net | $148,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |