Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Document Information [Line Items] | ' |
Document Type | 'S-1 |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
Entity Registrant Name | 'NEPHROS INC |
Entity Central Index Key | '0001196298 |
Entity Filer Category | 'Smaller Reporting Company |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash | $225 | $579 | $47 |
Accounts receivable | 113 | 122 | 935 |
Inventory, less allowances of $92 at June 30, 2014 and $365 at December 31, 2013 | 163 | 162 | 312 |
Prepaid expenses and other current assets | 59 | 125 | 109 |
Total current assets | 560 | 988 | 1,403 |
Property and equipment, net | 3 | 7 | 16 |
Other assets, net of accumulated amortization | 1,789 | 1,894 | 2,109 |
Total assets | 2,352 | 2,889 | 3,528 |
Current liabilities: | ' | ' | ' |
Senior secured note, net of debt discount of $142 at December 31, 2013 | 0 | 1,358 | 0 |
Accounts payable | 1,030 | 1,073 | 1,070 |
License and supply agreement fee payable | ' | 0 | 1,318 |
Accrued expenses | 233 | 365 | 321 |
Deferred revenue | 421 | 703 | 707 |
Total current liabilities | 1,684 | 3,499 | 3,416 |
Lon-term portion of deferred revenue | 452 | 0 | 707 |
Total liabilities | 2,136 | 3,499 | 4,123 |
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 | 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 | 12 |
Additional paid-in capital | 102,761 | 100,526 | 96,847 |
Accumulated other comprehensive income | 72 | 74 | 76 |
Accumulated deficit | -102,642 | -101,228 | -97,530 |
Total stockholders' equity (deficit) | 216 | -610 | -595 |
Total liabilities and stockholders' equity (deficit) | $2,352 | $2,889 | $3,528 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | |||
Inventory, allowances | $92 | $365 | $269 |
Note payable, net of debt discount | ' | $142 | ' |
Preferred stock, par value | $0.00 | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized | 90,000,000 | 90,000,000 | 90,000,000 |
Common stock, shares issued | 25,226,104 | 18,082,043 | 11,949,824 |
Common stock, shares outstanding | 25,226,104 | 18,082,043 | 11,949,824 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Net revenues: | ' | ' | ' | ' | ' | ' |
Product revenues | $248 | $391 | $467 | $737 | $1,029 | $1,127 |
License revenues | 193 | 184 | 448 | 359 | 711 | 680 |
Total net revenues | 441 | 575 | 915 | 1,096 | 1,740 | 1,807 |
Cost of goods sold | 142 | 226 | 248 | 421 | 898 | 737 |
Gross margin | 299 | 349 | 667 | 675 | 842 | 1,070 |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Research and development | 180 | 259 | 343 | 483 | 826 | 632 |
Depreciation and amortization | 55 | 58 | 110 | 114 | 223 | 151 |
Selling, general and administrative | 700 | 660 | 1,412 | 1,714 | 3,110 | 3,620 |
Total operating expenses | 935 | 977 | 1,865 | 2,311 | 4,159 | 4,403 |
Loss from operations | -636 | -628 | -1,198 | -1,636 | -3,317 | -3,333 |
Interest income | ' | ' | ' | ' | 0 | 2 |
Interest expense | -17 | -24 | -70 | -47 | -94 | 0 |
Gain on sale of equipment | 0 | 0 | 0 | 2 | 3 | 55 |
Amortization of debt discount | 0 | 0 | -142 | -204 | -257 | 0 |
Other income (expense) | -1 | -19 | -4 | -27 | -33 | 14 |
Net loss | -654 | -671 | -1,414 | -1,912 | -3,698 | -3,262 |
Other comprehensive loss, foreign currency translation adjustments | -1 | -2 | -2 | -2 | -2 | 27 |
Total comprehensive loss | ($655) | ($673) | ($1,416) | ($1,914) | ($3,700) | ($3,235) |
Net loss per common share, basic and diluted | ($0.03) | ($0.05) | ($0.06) | ($0.14) | ($0.24) | ($0.29) |
Weighted average common shares outstanding, basic and diluted | 25,166,752 | 14,556,050 | 22,004,712 | 13,289,703 | 15,624,999 | 11,223,878 |
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, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $1,421 | $10 | $95,630 | $49 | ($94,268) |
Balance, shares at Dec. 31, 2011 | ' | 10,501,477 | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' |
Net loss | -3,262 | ' | ' | ' | -3,262 |
Net unrealized losses on foreign currency translation | 27 | ' | ' | 27 | ' |
Comprehensive loss | -3,235 | ' | ' | ' | ' |
Exercise of warrants | 503 | 2 | 501 | ' | ' |
Exercise of warrants, shares | ' | 1,448,347 | ' | ' | ' |
Noncash stock-based compensation | 443 | ' | 443 | ' | ' |
Issuance of stock options related to licensing agreement | 273 | ' | 273 | ' | ' |
Balance at Dec. 31, 2012 | -595 | 12 | 96,847 | 76 | -97,530 |
Balance, shares at Dec. 31, 2012 | ' | 11,949,824 | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' |
Net loss | -3,698 | ' | ' | ' | -3,698 |
Net unrealized losses on foreign currency translation | -2 | ' | ' | -2 | ' |
Comprehensive loss | -3,700 | ' | ' | ' | ' |
Shareholder rights offering, net | 2,771 | 5 | 2,766 | ' | ' |
Shareholder rights offering, net, shares | ' | 5,000,000 | ' | ' | ' |
Issuance of restricted stock | 0 | ' | ' | ' | ' |
Issuance of restricted stock, shares | ' | 340,220 | ' | ' | ' |
Exercise of warrants | 248 | 1 | 247 | ' | ' |
Exercise of warrants, shares | ' | 791,999 | ' | ' | ' |
Noncash stock-based compensation | 652 | ' | 652 | ' | ' |
Warrant modification | 14 | ' | 14 | ' | ' |
Balance at Dec. 31, 2013 | -610 | 18 | 100,526 | 74 | -101,228 |
Balance, shares at Dec. 31, 2013 | ' | 18,082,043 | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' |
Net loss | -1,414 | ' | ' | ' | -1,414 |
Net unrealized losses on foreign currency translation | -2 | ' | ' | -2 | ' |
Comprehensive loss | -1,416 | ' | ' | ' | ' |
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 | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | ' | ' | ' | ' |
Net loss | ($1,414) | ($1,912) | ($3,698) | ($3,262) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' | ' | ' |
Depreciation of property and equipment | 5 | 5 | 9 | 9 |
Amortization of other assets | 105 | 109 | 214 | 142 |
Noncash stock-based compensation | 227 | 248 | 575 | 443 |
Warrant inducement | ' | ' | 14 | 0 |
Amortization of debt discount | 142 | 204 | 257 | 0 |
Inventory reserve | 31 | 0 | 210 | 82 |
Noncash interest | ' | ' | 39 | 0 |
Loss on foreign currency transactions | 4 | 3 | 26 | 7 |
Gain on sale of equipment | 0 | -2 | -3 | -55 |
(Increase) decrease in operating assets: | ' | ' | ' | ' |
Accounts receivable | 9 | 577 | 820 | 1,006 |
Inventory | -32 | 166 | -60 | -147 |
Prepaid expenses and other current assets | 66 | 37 | -16 | 4 |
Long-term receivable | ' | ' | ' | 0 |
Increase (decrease) in operating liabilities: | ' | ' | ' | ' |
Accounts payable and accrued expenses | -180 | -316 | 59 | 904 |
License and supply agreement fee payable | 0 | -1,318 | -1,318 | 0 |
Deferred revenue | 170 | -359 | -711 | -680 |
Net cash used in operating activities | -867 | -2,558 | -3,583 | -1,547 |
Investing activities: | ' | ' | ' | ' |
Purchase of property and equipment | ' | ' | 0 | -8 |
Purchase of intangible assets | ' | ' | 0 | -659 |
Proceeds from sale of equipment | 0 | 2 | 3 | 55 |
Net cash provided by investing activities | 0 | 2 | 3 | -612 |
Financing activities: | ' | ' | ' | ' |
Proceeds from issuance of common stock, net of equity issuance costs of $128 and $229, respectively | 2,013 | 2,771 | 2,771 | 0 |
Proceeds from issuance of senior secured note | 0 | 1,300 | 2,800 | ' |
Proceeds from exercise of warrants | 2 | 239 | 248 | 503 |
Payment of senior secured note | -1,500 | -1,300 | -1,300 | 0 |
Payment of financing costs | 0 | -204 | -399 | 0 |
Net cash provided by financing activities | 515 | 2,806 | 4,120 | 503 |
Effect of exchange rates on cash and cash equivalents | -2 | 1 | -8 | 34 |
Net increase (decrease) in cash | -354 | 251 | 532 | -1,622 |
Cash, beginning of period | 579 | 47 | 47 | 1,669 |
Cash, end of period | 225 | 298 | 579 | 47 |
Supplemental disclosure of cash flow information | ' | ' | ' | ' |
Cash paid for income taxes | 4 | 2 | 2 | 18 |
Cash paid for interest | 54 | 24 | ' | ' |
Restricted stock issued to settle liability | 0 | 77 | 77 | 0 |
Payable related to license and supply agreement | ' | ' | 0 | 1,318 |
Receivable related to license agreement | ' | ' | 0 | 791 |
Fair value of stock options granted to Medica | $273 | ' | $0 | $273 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Payments of Stock Issuance Costs | $128 | $229 | $229 |
Organization_and_Nature_of_Ope
Organization and Nature of Operations | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Organization and Nature of Operations | ' | ' |
1. Organization and Nature of Operations | Note 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. | 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 various stages of development in the hemodiafiltration, or HDF, modality to deliver improved therapy for ESRD patients. These are the OLpur MDHDF filter series or “dialyzers,” designed expressly for HDF therapy, the OLpur H2H, 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 system, which represents a new and complementary product line to the Company’s existing 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. | 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 | 12 Months Ended | ||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ' | ||||||||
Basis of Presentation and Going Concern | ' | ' | ||||||||
2. Basis of Presentation and Going Concern | Note 2 - Summary of Significant Accounting Policies | |||||||||
Interim Financial Information | Principles of Consolidation and Basis of Presentation | |||||||||
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. | The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Nephros International Limited. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
Use of Estimates | These consolidated financial statements were approved by management and the Board of Directors and are available for issuance as of the date of the audit opinion. Subsequent events have been evaluated through this date. | |||||||||
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. | Use of Estimates in the Preparation of Financial Statements | |||||||||
Going Concern and Management’s Response | The preparation of consolidated 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. Certain prior year amounts have been reclassified to conform to the current year presentation. | |||||||||
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. | Going Concern and Management’s Response | |||||||||
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 accompanying consolidated 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 consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |||||||||
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. | The Company has incurred significant losses in operations in each quarter since inception. For the years ended December 31, 2013 and 2012, the Company has incurred net losses of $3,698,000 and $3,262,000, respectively. In addition, the Company has not generated positive cash flow from operations for the years ended December 31, 2013 and 2012. 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 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. | The voluntary recalls of point of use (POU) and DSU in-line ultrafilters 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 FDA or other regulatory authorities which may adversely impact the Company’s sales and revenues. | |||||||||
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. | ||||||||||
On June 27, 2011, the Company entered into a License Agreement, effective July 1, 2011, with Bellco S.r.l., as licensee (“Bellco”), an Italy-based supplier of hemodialysis and intensive care products, for the manufacturing, marketing and sale of Nephros’ patented mid-dilution dialysis filters. This Agreement provided the Company with payments of €500,000, €750,000, and €600,000 on July 1, 2011, January 15, 2012 and January 15, 2013, respectively. 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. As a result of the amendment, the Company will receive a total of €450,000 in upfront fees in connection with the First Amendment, half of which were paid on February 19, 2014, and the other half of which are payable on March 31, 2014. See Note 12, Commitments and Contingencies for further discussion. | ||||||||||
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. | ||||||||||
On February 4, 2013 and November 12, 2013, the Company issued senior secured notes to Lambda Investors LLC in the principal amount of $1.3 million and $1.5 million, respectively. As of December 31, 2013, the $1.5 million note is outstanding. The $1.3 million note was repaid on May 22, 2013. For a more detailed discussion of the terms of the senior secured notes, see Note 6, Senior Secured Notes. | ||||||||||
On March 21, 2014 the Company completed a rights offering which resulted in gross proceeds of $2.1 million. See Note 14, Subsequent Events, for further discussion. | ||||||||||
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. | ||||||||||
Cash and Cash Equivalents | ||||||||||
The Company invests its excess cash in bank deposits and money market accounts. The Company considers all highly liquid investments purchased with original maturities of three months or less from the date of purchase to be cash equivalents. Cash equivalents are carried at fair value, which approximate cost, and primarily consist of money market funds maintained at major U.S. financial institutions. | ||||||||||
Accounts Receivable | ||||||||||
The Company provides credit terms to customers in connection with purchases of the Company’s products. Management periodically reviews customer account activity in order to assess the adequacy of the allowances provided for potential collection issues and returns. Factors considered include economic conditions, each customer’s payment and return history and credit worthiness. Adjustments, if any, are made to reserve balances following the completion of these reviews to reflect management’s best estimate of potential losses. There were no allowances for doubtful accounts at December 31, 2013 or 2012. There was no allowance for sales returns at December 31, 2013 or 2012. There were no write offs of accounts receivable to bad debt expense during 2013 or 2012. | ||||||||||
Inventory | ||||||||||
The Company engages third parties to manufacture and package inventory held for sale, takes title to certain inventory once manufactured, and warehouses such goods until packaged for final distribution and sale. Inventory consists of finished goods and raw materials (fiber) held at the manufacturers’ facilities, and are valued at the lower of cost or market using the first-in, first-out method. The Company’s inventory reserve requirements are based on factors including the products’ expiration date and estimates for the future sales of the product. If estimated sales levels do not materialize, the Company will make adjustments to its assumptions for inventory reserve requirements. | ||||||||||
In March 2014, the Company requested the closeout of its October 2013 voluntary product recall. The Company has fully reserved the recalled product and will destroy the respective product by April 20, 2014. | ||||||||||
Patents | ||||||||||
The Company has filed numerous patent applications with the United States Patent and Trademark Office and in foreign countries. All costs and direct expenses incurred in connection with patent applications have been expensed as incurred. | ||||||||||
Property and Equipment, net | ||||||||||
Property and equipment, net is stated at cost less accumulated depreciation. These assets are depreciated over their estimated useful lives of three to seven years using the straight line method. | ||||||||||
Impairment for Long-Lived Assets | ||||||||||
The Company adheres to Accounting Standards Codification (“ASC”) Topic 360 and periodically evaluates whether current facts or circumstances indicate that the carrying value of its depreciable assets to be held and used may be recoverable. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived assets, or the appropriate grouping of assets, is compared to the carrying value to determine whether impairment exists. If an asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its carrying value. An estimate of the asset’s fair value is based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including a discounted value of estimated future cash flows. The Company reports an asset to be disposed of at the lower of its carrying value or its estimated net realizable market value. There were no impairment losses for long-lived assets recorded for the years ended December 31, 2013 and December 31, 2012. | ||||||||||
Fair Value of Financial Instruments | ||||||||||
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term maturity of these instruments. | ||||||||||
Revenue Recognition | ||||||||||
Revenue is recognized in accordance with ASC Topic 605. Four basic criteria must be met before revenue can be recognized: (i) persuasive evidence of 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. All shipments are currently received directly by the Company’s customers. | ||||||||||
Deferred revenue was approximately $703,000 and $1,414,000 on the accompanying consolidated balance sheets as of December 31, 2013 and 2012, respectively, and is related to the License Agreement with Bellco. The Company has recognized approximately $1,756,000 of revenue related to this license agreement to date, including approximately $711,000 for the year ended December 31, 2013, resulting in $703,000 being deferred over the remainder of the expected obligation period. 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 $703,000 for each of the year ending December 31, 2014. Total payments of approximately $2,459,000, including the final payment of approximately $791,000 received in January 2013, were related to the License Agreement with Bellco. | ||||||||||
Shipping and Handling Costs | ||||||||||
Shipping and handling costs are recorded as cost of goods sold and are approximately $30,000 and $33,000 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||
Research and Development Costs | ||||||||||
Research and development costs are expensed as incurred. | ||||||||||
Stock-Based Compensation | ||||||||||
The Company accounts for stock-based compensation in accordance with ASC Topic 718 by recognizing the fair value of stock-based compensation in the consolidated statement of operations and comprehensive loss. The fair value of the Company’s stock option awards are estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions and elections including expected stock price volatility and the estimated life of each award. In addition, the calculation of compensation costs requires that the Company estimate the number of awards that will be forfeited during the vesting period. The fair value of stock-based awards is amortized over the vesting period of the award. For stock-based awards that vest based on performance conditions (e.g. achievement of certain milestones), expense is recognized when it is probable that the condition will be met. | ||||||||||
Amortization of Debt Issuance Costs | ||||||||||
The Company accounts for debt issuance costs in accordance with ASC 835, which requires that costs paid directly to the issuer of the notes be reported in the balance sheet as a debt discount and amortized over the term of the associated debt. Debt issuance costs of $399,000 for the year ended December 31, 2013 are associated with the senior secured notes issued to Lambda Investors LLC on February 4, 2013 and November 12, 2013. Approximately $257,000 of these costs were amortized as of December 31, 2013 and are included in amortization of debt discount on the consolidated statements of operations and comprehensive loss. There were no debt issuance costs for the year ended December 31, 2012. | ||||||||||
Other Income (Expense), net | ||||||||||
Other income (expense), net, of approximately $33,000 includes approximately $50,000 of other expense for the year ended December 31, 2013, primarily due to approximately $36,000 related to foreign currency losses and approximately $14,000 related to the May 2013 rights offering warrant modification. Other expense was partially offset by other income of approximately $17,000, which consisted primarily of a refund of approximately $15,000 received as a result of the Steris agreement termination. Other income (expense), net, in the amount of approximately $14,000 for the year ended December 31, 2012 is due primarily to approximately $18,000 in write-offs of old vendor invoices which are no longer due, offset partially by approximately $4,000 of net foreign currency losses on invoices paid to and due to an international supplier. | ||||||||||
Income Taxes | ||||||||||
The Company accounts for income taxes in accordance with ASC Topic 740, which requires accounting for deferred income taxes under the asset and liability method. Deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable in future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. | ||||||||||
For financial reporting purposes, the Company has incurred a loss in each period since its inception. Based on available objective evidence, including the Company’s history of losses, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets at December 31, 2013 and 2012. | ||||||||||
ASC Topic 740 prescribes, among other things, a recognition threshold and measurement attributes for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return. ASC 740 utilizes a two-step approach for evaluating uncertain tax positions. Step one, or recognition, requires a company to determine if the weight of available evidence indicates a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. Step two, or measurement, is based on the largest amount of benefit, which is more likely than not to be realized on settlement with the taxing authority. The Company is subject to income tax examinations by major taxing authorities for all tax years subsequent to 2010. The adoption of the provisions of ASC 740 did not have a material impact on the Company’s consolidated financial statements. During the years ended December 31, 2013 and 2012, the Company recognized no adjustments for uncertain tax positions. However, management’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulation and interpretations, thereof. | ||||||||||
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 and the exercise of stock options and warrants. The following securities have been excluded from the dilutive per share computation as they are antidilutive: | ||||||||||
2013 | 2012 | |||||||||
Stock options | 2,410,134 | 2,294,714 | ||||||||
Warrants | 13,887,598 | 14,679,971 | ||||||||
Unvested restricted stock | 75,450 | - | ||||||||
Foreign Currency Translation | ||||||||||
Foreign currency translation is recognized in accordance with ASC Topic 830. The functional currency of Nephros International Limited is the Euro and its translation gains and losses are included in accumulated other comprehensive income. The balance sheet is translated at the year-end rate. The statement of operations is translated at the weighted average rate for the year. | ||||||||||
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 years ended December 31, 2013 and 2012, the comprehensive loss was approximately $3,700,000 and $3,235,000, respectively. | ||||||||||
Recently Adopted Accounting Pronouncements | ||||||||||
There were no recent accounting pronouncements that are expected to have an effect on the Company’s consolidated financial statements. | ||||||||||
Concentration_of_Credit_Risk
Concentration of Credit Risk | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||
Concentration Of Credit Risk [Abstract] | ' | ' | ||||||||
Concentration of Credit Risk | ' | ' | ||||||||
3. Concentration of Credit Risk | Note 13 - 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. | Cash and cash equivalents are financial instruments which potentially subject the Company to concentrations of credit risk. The Company deposits its cash in financial institutions. At times, such deposits may be in excess of insured limits. To date, the Company has not experienced any impairment losses on its cash and cash equivalents. | |||||||||
Customer | 2014 | 2013 | Major Customers | |||||||
A | 59 | % | 33 | % | ||||||
B | 20 | % | 29 | % | For the years ended December 31, 2013 and 2012, three customers accounted for 86% and 68%, respectively, of the Company’s sales. In addition, as of December 31, 2013 and 2012, those three customers accounted for 97% and 88%, respectively, of the Company’s accounts receivable. | |||||
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 | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ' | |||||||||||||||||||||||
Stock-Based Compensation | ' | ' | |||||||||||||||||||||||
5. Stock-Based Compensation | Note 9 - Stock Plans, Share-Based Payments and Warrants | ||||||||||||||||||||||||
Stock Options | Stock Plans | ||||||||||||||||||||||||
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. | In 2000, the Company adopted the Nephros 2000 Equity Incentive Plan. In January 2003, the Board of Directors adopted an amendment and restatement of the plan and renamed it the Amended and Restated Nephros 2000 Equity Incentive Plan (the “2000 Plan”), under which 106,538 shares of common stock had been authorized for issuance upon exercise of options granted. | ||||||||||||||||||||||||
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. | As of December 31, 2013 and 2012, 831 and 2,053 options, respectively, had been issued to non-employees under the 2000 Plan and were outstanding. During the twelve months ended December 31, 2013, 1,222 non-employee options expired. The remaining outstanding options, all of which are fully vested, will expire on March 15, 2014. As of December 31, 2013 and 2012, 2,003 and 7,230 options, respectively, had been issued to employees under the 2000 Plan and were outstanding. During the twelve months ended December 31, 2013, 5,227 employee options expired. The remaining employee options, all of which are fully vested, will expire on March 15, 2014. | ||||||||||||||||||||||||
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 Board retired the 2000 Plan in June 2004, and thereafter no additional awards may be granted under the 2000 Plan. | ||||||||||||||||||||||||
The following assumptions were used for options granted for the six months ended June 30, 2014: | In 2004, the Board of Directors adopted and the Company’s stockholders approved the Nephros, Inc. 2004 Stock Incentive Plan. During the year ended December 31, 2013, the Company’s stockholders approved an amendment to such plan (as amended, the “2004 Plan”), that increased the number of shares of the Company’s common stock that are authorized for issuance by the Company pursuant to grants of awards under the 2004 Plan to 4,500,000. | ||||||||||||||||||||||||
Assumptions for Option Grants | Six Months | As of December 31, 2013, 1,360,059 options had been issued to employees under the 2004 Plan and were outstanding. The options expire on various dates between April 27, 2015 and March 24, 2021, and vest upon a combination of the following: immediate vesting or straight line vesting of two or four years. At December 31, 2013, there were 2,407,318 shares available for future grants under the 2004 Plan. As of December 31, 2013, 715,692 options had been issued to non-employees under the 2004 Plan and were outstanding. Such options expire at various dates between November 11, 2014 and November 18, 2021, and vest upon a combination of the following: immediate vesting or straight line vesting of two or four years. In addition, 331,550 options were issued in 2012 to the Company’s CEO per terms of his employment agreement and are outstanding as of December 31, 2013. | |||||||||||||||||||||||
Ended | |||||||||||||||||||||||||
June 30, 2014 | As of December 31, 2012, 1,316,628 options had been issued to employees under the 2004 Plan and were outstanding. The options expire on various dates between April 27, 2015 and May 23, 2023, and vest upon a combination of the following: immediate vesting or straight line vesting of two to four years. At December 31, 2012, there were 19,904 shares available for future grants under the 2004 Plan. As of December 31, 2012, 637,253 options had been issued to non-employees under the 2004 Plan and were outstanding. Such options expire at various dates between November 11, 2014 and December 31, 2023, and vest upon a combination of the following: immediate vesting or straight line vesting of two to four years. | ||||||||||||||||||||||||
Risk-free interest rate | 1.76 - 1.91 | % | |||||||||||||||||||||||
Volatility | 129.2 - 133.4 | % | Share-Based Payment | ||||||||||||||||||||||
Expected dividend yield | 0 | % | |||||||||||||||||||||||
Expected term | 5.75 - 6.25 yrs | Prior to the Company’s initial public offering, options were granted to employees, non-employees and non-employee directors at exercise prices which were lower than the fair market value of the Company’s stock on the date of grant. After the date of the Company’s initial public offering, stock options are granted to employees, non-employees and non-employee directors at exercise prices equal to the fair market value of the Company’s stock on the date of grant. Stock options granted have a life of 10 years. | |||||||||||||||||||||||
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. | Expense is recognized, net of expected forfeitures, over the vesting period of the options. For options that vest upon the achievement of certain milestones, expense is recognized when it is probable that the condition will be met. Stock based compensation expense recognized for the years ended December 31, 2013 and 2012 was approximately $418,000 or less than $0.03 per share and approximately $443,000 or less than $0.04 per share, respectively. | ||||||||||||||||||||||||
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. | 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. In addition, 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 twelve month period ended December 31, 2013. | ||||||||||||||||||||||||
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. | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the below assumptions related to risk-free interest rates, expected dividend yield, expected lives and expected stock price volatility. | ||||||||||||||||||||||||
Restricted Stock | Option Pricing Assumptions | ||||||||||||||||||||||||
Grant Year | 2013 | 2012 | |||||||||||||||||||||||
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. | Stock Price Volatility | 127.46-135.98 | % | 123.48 –128.54 | % | ||||||||||||||||||||
Risk-Free Interest Rates | 1.09-1.75 | % | .093-1.32 | % | |||||||||||||||||||||
Expected Life (in years) | 5.00-6.25 | 5.75-62.5 | |||||||||||||||||||||||
Expected Dividend Yield | 0 | % | 0 | % | |||||||||||||||||||||
Expected volatility is based on historical volatility of the Company’s common stock at the time of grant. The risk-free interest rate is based on the U.S. Treasury yields in effect at the time of grant for periods corresponding with the expected life of the options. For the expected life, the Company is using the simplified method as described in the SEC Staff Accounting Bulletin 107. This method assumes that stock option grants will be exercised based on the average of the vesting periods and the option’s life. | |||||||||||||||||||||||||
The total fair value of options vested during the fiscal year ended December 31, 2013 was approximately $519,000. The total fair value of options vested during the fiscal year ended December 31, 2012 was approximately $506,000. | |||||||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Range of Exercise | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||||||
Price | Outstanding as | Average | Average | Exercisable as | Average | ||||||||||||||||||||
of December | Remaining | Exercise | of | Exercise Price | |||||||||||||||||||||
31, 2013 | Contractual | Price | December 31, | ||||||||||||||||||||||
Life in | 2013 | ||||||||||||||||||||||||
Years | |||||||||||||||||||||||||
$0.41 - $2.60 | 2,374,514 | 8.16 | $ | 0.93 | 1,349,579 | $ | 0.83 | ||||||||||||||||||
$15.00 - $29.80 | 27,909 | 4.58 | $ | 17.82 | 27,909 | $ | 17.82 | ||||||||||||||||||
$34.20-$96.00 | 7,711 | 1.38 | $ | 51.49 | 7,711 | $ | 51.49 | ||||||||||||||||||
Total Outstanding | 2,410,134 | $ | 1.28 | 1,385,199 | $ | 1.46 | |||||||||||||||||||
The number of new options granted in 2013 and 2012 is 237,315 and 1,547,550, respectively. The weighted-average fair value of options granted in 2013 and 2012 is $0.56 and $1.03, respectively. | |||||||||||||||||||||||||
The following table summarizes the option activity for the year ended December 31, 2013: | |||||||||||||||||||||||||
Shares | Weighted | ||||||||||||||||||||||||
Average | |||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||
Price | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 2,294,714 | $ | 2.14 | ||||||||||||||||||||||
Options granted | 237,315 | 0.64 | |||||||||||||||||||||||
Options exercised | - | - | |||||||||||||||||||||||
Options forfeited or expired | (121,895 | ) | 3.27 | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 2,410,134 | $ | 1.28 | ||||||||||||||||||||||
Exercisable at December 31, 2013 | 1,385,199 | $ | 1.46 | ||||||||||||||||||||||
Vested and expected to vest at December 31, 2013 | 2,350,688 | $ | 1.29 | ||||||||||||||||||||||
The aggregate intrinsic value of stock options outstanding at December 31, 2013 is $0 and of stock options vested or expected to vest is approximately $0. A stock option has intrinsic value, at any given time, if and to the extent that the exercise price of such stock option is less than the market price of the underlying common stock at such time. The weighted-average remaining contractual life of options vested or expected to vest is 8.1 years. | |||||||||||||||||||||||||
The aggregate intrinsic value of stock options outstanding at December 31, 2012 is $793,000 and of stock options vested or expected to vest is approximately $768,000. A stock option has intrinsic value, at any given time, if and to the extent that the exercise price of such stock option is less than the market price of the underlying common stock at such time. The weighted-average remaining contractual life of options vested or expected to vest is 8.9 years. | |||||||||||||||||||||||||
As of December 31, 2013, the total remaining unrecognized compensation cost related to non-vested stock options amounted to $727,000 and will be amortized over the weighted-average remaining requisite service period of 2.3 years. | |||||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||
The Company has issued restricted stock as compensation for the services of certain employees and non-employee directors. The grant date fair value of restricted stock was based on the fair value of the common stock on the date of grant, and compensation expense is recognized based on the period in which the restrictions lapse. | |||||||||||||||||||||||||
The following table summarizes restricted stock activity for the year end December 31, 2013: | |||||||||||||||||||||||||
Shares | Weighted | ||||||||||||||||||||||||
Average | |||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Nonvested at December 31, 2012 | - | $ | - | ||||||||||||||||||||||
Granted | 398,227 | 0.73 | |||||||||||||||||||||||
Vested | (264,770 | ) | 0.71 | ||||||||||||||||||||||
Forfeited | (58,007 | ) | 0.88 | ||||||||||||||||||||||
Nonvested at December 31, 2013 | 75,450 | $ | 0.66 | ||||||||||||||||||||||
Total stock-based compensation expense for the restricted stock was approximately $157,000 for the year ended December 31, 2013. For the year ended December 31, 2013, approximately $109,000 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 $77,000 was recorded to offset accrued director’s fees that were incurred prior to December 31, 2012. Any additional stock-based compensation related to non-employee directors will be recorded to stock-based compensation expense. As of December 31, 2013, there was approximately $4,000 of unrecognized compensation expense related to the restricted stock awards, which is expected to be recognized over the next six months. | |||||||||||||||||||||||||
Warrants | |||||||||||||||||||||||||
The following table summarizes certain terms of all of the Company’s outstanding warrants at December 31, 2013 and 2012: | |||||||||||||||||||||||||
Total Outstanding Warrants at December 31, 2013 | |||||||||||||||||||||||||
Title of Warrant | Date Issued | Expiry Date | Exercise Price | Total Common | |||||||||||||||||||||
Shares Issuable | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Class D Warrants - Lambda | 11/14/07 | 3/10/17 | $ | 0.4 | 8,806,575 | 8,806,575 | |||||||||||||||||||
July 2009 Warrants | 7/24/09 | 7/24/14 | $ | 22.4 | 33,629 | 33,629 | |||||||||||||||||||
Shareholder Rights Offering Warrants | 3/10/11 | 3/10/16 | $ | 0.4 | 2,264,817 | 3,057,190 | |||||||||||||||||||
March 2011 Lambda Warrants | 3/10/11 | 3/10/17 | $ | 0.4 | 2,782,577 | 2,782,577 | |||||||||||||||||||
13,887,598 | 14,679,971 | ||||||||||||||||||||||||
The weighted average exercise price of the outstanding warrants was $0.45 for December 31, 2013 and 2012. | |||||||||||||||||||||||||
Following the closing of the rights offering in 2013, Lambda Investors’ existing warrants to purchase 8,806,575 shares that remain outstanding were amended to expire on March 10, 2017. | |||||||||||||||||||||||||
The following table summarizes the Class D outstanding warrants at December 31, 2013 and 2012: | |||||||||||||||||||||||||
Lambda Investors | Other Investors | Total Shares to be issued | |||||||||||||||||||||||
As of December 31, 2011 | 8,806,575 | 447,197 | 9,253,772 | ||||||||||||||||||||||
Exercised in 2012 | - | (352,034 | ) | (352,034 | ) | ||||||||||||||||||||
Expired in 2012 | - | (95,163 | ) | (95,163 | ) | ||||||||||||||||||||
As of December 31, 2012 | 8,806,575 | - | 8,806,575 | ||||||||||||||||||||||
Exercised in 2013 | - | - | - | ||||||||||||||||||||||
Expired in 2013 | - | - | - | ||||||||||||||||||||||
As of December 31, 2013 | 8,806,575 | - | 8,806,575 | ||||||||||||||||||||||
Class D warrant holders elected to exercise 352,034 of the outstanding Class D Warrants in 2012. As a result, 190,326 were exercised pursuant to the cashless exercise provision of the warrant. In addition, 161,708 warrants were exercised resulting in proceeds of approximately $65,000. | |||||||||||||||||||||||||
Warrants exercised during 2013 and 2012 | |||||||||||||||||||||||||
In connection with the 2013 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 2013 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 year ended December 31, 2013 was approximately $14,000. | |||||||||||||||||||||||||
Additionally, during the twelve months ended December 31, 2013, 2,254,500 warrants were exercised outside the period that the 2013 Rights Offering was open, resulting in proceeds of approximately $42,000 and the issuance of 104,206 shares of the Company’s common stock. | |||||||||||||||||||||||||
An additional 374 common shares were not issued as a result of warrant exercises for the year ended December 31, 2013 due to rounding. | |||||||||||||||||||||||||
Shareholders exercised 23,720,667 warrants, resulting in proceeds of approximately $438,000 and the issuance of 1,096,313 shares of the Company’s common stock for the year ended December 31, 2012. | |||||||||||||||||||||||||
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||
Property and Equipment, Net | ' | |||||||||||
Note 5 - Property and Equipment, Net | ||||||||||||
Property and equipment as of December 31, 2013 and 2012 was as follows: | ||||||||||||
December 31, | ||||||||||||
Life | 2013 | 2012 | ||||||||||
Manufacturing equipment | 3-5 years | $ | 599,000 | $ | 602,000 | |||||||
Research equipment | 5 years | 37,000 | 37,000 | |||||||||
Computer equipment | 3-4 years | 59,000 | 59,000 | |||||||||
Furniture and fixtures | 7 years | 39,000 | 39,000 | |||||||||
Property and equipment, gross | 734,000 | 737,000 | ||||||||||
Less: accumulated depreciation | 727,000 | 721,000 | ||||||||||
Property and equipment, net | $ | 7,000 | $ | 16,000 | ||||||||
Depreciation expense for each of the years ended December 31, 2013 and 2012 was $9,000, including amortization expense relating to research and development assets. | ||||||||||||
During 2013, the Company sold fully depreciated equipment totaling approximately $3,000 which is reflected as gain on sale of equipment on the consolidated statements of operationsand comprehensive loss. During 2012, the Company agreed to sell its manufacturing equipment to Medica for approximately €42,500, or $55,000. All assets at the manufacturing plant were fully depreciated as of the date of the sale. Approximately €42,500, or $55,000, is recognized as gain on sale of equipment on the consolidated statements of operationsand comprehensive loss for the year ended December 31, 2012. | ||||||||||||
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. | |
Senior_Secured_Notes
Senior Secured Notes | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Senior Secured Notes | ' | ' |
11. Senior Secured Notes | Note 6 – 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. | On February 4, 2013, the Company issued a 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 scheduled to mature on August 4, 2013, at which time all principal and accrued interest was due. However, the Company paid amounts due under the note on May 22, 2013 with the cash proceeds from the rights offering that closed in May 2013. In connection with the note, the Company paid Lambda Investors an 8%, or $104,000, 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 $50,000 as well as Lambda Investors’ legal fees and other expenses incurred in connection with the May 2013 rights offering in the amount of $50,000. Those payments totaling $204,000 are reflected as amortization of debt discount. | |
On November 12, 2013, the Company issued a senior secured note to Lambda Investors LLC 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 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 are reflected as a debt discount which is being amortized over the term of the senior secured note. Approximately $53,000 is reflected as amortization of debt discount on the consolidated statements of operations and comprehensive loss for the year the ended December 31, 2013. | ||
On March 21, 2014 the Company completed a rights offering which resulted in gross proceeds of $2.1 million. A portion of the proceeds was used for the repayment of a $1.5 million note, plus all accrued interest thereon of $61,000. See Note 13, Subsequent Events, for further discussion. | ||
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. | |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
Note 7 - Accrued Expenses | |||||||||
Accrued expenses as of December 31, 2013 and 2012 were as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued Legal | $ | 149,000 | $ | 90,000 | |||||
Accrued Product Recall | 60,000 | ||||||||
Accrued Directors’ Compensation | - | 77,000 | |||||||
Accrued Management Bonus | 81,000 | - | |||||||
Accrued Interest | 39,000 | - | |||||||
Accrued Travel | - | 84,000 | |||||||
Accrued Other | 36,000 | 70,000 | |||||||
Accrued Expenses | $ | 365,000 | $ | 321,000 | |||||
Loss_per_Common_Share
Loss per Common Share | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Loss Per Common 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. | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
Note 8 - Income Taxes | |||||||||
A reconciliation of the income tax provision computed at the statutory tax rate to the Company’s effective tax rate is as follows: | |||||||||
2013 | 2012 | ||||||||
U.S. federal statutory rate | 35 | % | 35 | % | |||||
State & local taxes | 5.22 | % | 5.36 | % | |||||
Tax on foreign operations | 0.4 | % | -0.78 | % | |||||
State research and development credits | 1.09 | % | 1.06 | % | |||||
Other | -3 | % | -2.29 | % | |||||
Valuation allowance | -38.71 | % | -38.35 | % | |||||
Effective tax rate | - | - | |||||||
Significant components of the Company’s deferred tax assets as of December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carry forwards | $ | 27,029,000 | $ | 25,721,000 | |||||
Research and development credits | 1,096,000 | 1,054,000 | |||||||
Nonqualified stock option compensation expense | 1,801,000 | 1,701,000 | |||||||
Other temporary book - tax differences | 408,000 | 441,000 | |||||||
Total deferred tax assets | 30,334,000 | 28,917,000 | |||||||
Valuation allowance for deferred tax assets | -30,334,000 | -28,917,000 | |||||||
Net deferred tax assets | $ | - | $ | - | |||||
A valuation allowance has been recognized to offset the Company’s net deferred tax asset as it is more likely than not that such net asset will not be realized. The Company primarily considered its historical loss and potential Internal Revenue Code Section 382 limitations to arrive at its conclusion that a valuation allowance was required. | |||||||||
At December 31, 2013, the Company had Federal and New Jersey income tax net operating loss carryforwards of $87,292,000 and foreign income tax net operating loss carryforwards of $8,305,000. The Company also had Federal research tax credit carryforwards of $1,096,000 at December 31, 2013 and $1,054,000 at December 31, 2012. The Federal net operating loss and tax credit carryforwards will expire at various times between 2014 and 2026 unless utilized. | |||||||||
It is the Company’s policy to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. | |||||||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [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 | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||
Inventory Disclosure [Abstract] | ' | ' | |||||||||||||||
Inventory, net | ' | ' | |||||||||||||||
10. Inventory, net | Note 3 - Inventory | ||||||||||||||||
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: | The Company’s inventory components as of December 31, 2013 and 2012 were as follows: | ||||||||||||||||
Unaudited | Audited | December 31, | |||||||||||||||
June 30, 2014 | December 31, 2013 | 2013 | 2012 | ||||||||||||||
Total Gross Inventory, Finished Goods | $ | 255,000 | $ | 527,000 | Total Gross Inventory, Finished Goods | $ | 527,000 | $ | 581,000 | ||||||||
Less: Inventory reserve | -92,000 | -365,000 | Less: Inventory reserve | -365,000 | -269,000 | ||||||||||||
Total Inventory | $ | 163,000 | $ | 162,000 | Total Inventory | $ | 162,000 | $ | 312,000 | ||||||||
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. | |||||||||||||||||
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Stockholders Equity Note [Abstract] | ' | ' |
Stockholders' Equity | ' | ' |
12. Stockholders’ Equity | Note 10 – 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 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. | |
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. | 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 the issuance of 5,000,000 shares for gross proceeds of $3.0 million. The aggregate net proceeds were approximately $1.4 million, after deducting the repayment of the $1.3 million February 2013 senior secured note, plus $46,800 of accrued interest thereon, issued to Lambda Investors, LLC, the payment of an 8% sourcing transaction fee of $104,000 with respect to the February 2013 senior secured note and an aggregate of $100,000 for reimbursement of Lambda Investors’ legal fees incurred in connection with the February 2013 senior secured note and the Rights Offering. Those payments totaling $204,000 are reflected as amortization of debt discount. | ||
401k_Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
401 (k) Plan | ' |
Note 11 - 401(k) Plan | |
The Company has established a 401(k) deferred contribution retirement plan (the “401(k) Plan”) which covers all employees. The 401(k) Plan provides for voluntary employee contributions of up to 15% of annual earnings, as defined. As of January 1, 2004, the Company began matching 100% of the first 3% and 50% of the next 2% of employee earnings to the 401(k) Plan. The Company contributed and expensed $46,000 and $49,000 in 2013 and 2012, respectively. | |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ||||||||||||||||
Commitments and Contingencies | ' | ' | ||||||||||||||||
13. Commitments and Contingencies | Note 12 - Commitments and Contingencies | |||||||||||||||||
Manufacturing and Suppliers | 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”). | The Company has not and does not intend in the near future, to manufacture any of its products and components. With regard to the OLpur 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 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. | 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 through 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, 2016, Bellco will pay us 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, €1.75 per unit; thereafter, €1.25 per unit. In addition, the Company will receive a total of €450,000 in upfront fees in connection with the First Amendment, half of which were paid on February 19, 2014, and the other half of which are payable on March 31, 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. | |||||||||||||||||
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. In the year ended December 31, 2013 the Company’s aggregate purchase commitments totaled approximately €532,000. For calendar years thereafter, annual minimum amounts will be mutually agreed upon between Medica and the Company. | ||||||||||||||||||
In exchange for the license, the Company paid Medica €1,500,000 in three installments: €500,000 on April 23, 2012, €600,000 on February 4, 2013, and €400,000 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 2 under 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 consolidated balance sheet is approximately $1,894,000, net of $356,000 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 $214,000 and $142,000 have been charged to amortization expense for the years ended December 31, 2013 and 2012, respectively, on the consolidated statement of operations and comprehensive loss. Approximately $208,000 of amortization expense will be recognized in the years ended December 31, 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. | ||||||||||||||||||
As of September 2013, we have an understanding with Medica whereby we have agreed to pay interest to Medica at a 12% annual rate calculated on the principal amount of any outstanding invoices that are not paid pursuant to the original payment terms. | ||||||||||||||||||
Employment Agreement | ||||||||||||||||||
On April 20, 2012, the Company entered into an Employment Agreement, effective as of April 20, 2012, with John C. Houghton (“Employment Agreement”). The Employment Agreement has a term of four years, ending on April 20, 2016. The Employment Agreement provides that Mr. Houghton’s annual base salary will be $350,000. Mr. Houghton will be eligible to receive a target discretionary bonus of 30% of annual base salary, as determined by the Company. | ||||||||||||||||||
Contractual Obligations | ||||||||||||||||||
The Company had an operating lease that expired on November 30, 2013 for the rental of its U.S. office and research and development facilities with a monthly cost of approximately $8,000. On July 25, 2013, the Company signed a one year lease extension for the same office space which will expire on November 30, 2014 with a monthly cost of approximately $8,000 beginning December 1, 2013. | ||||||||||||||||||
Rent expense for the years ended December 31, 2013 and 2012 totaled $108,000 and $109,000, respectively. | ||||||||||||||||||
Contractual Obligations and Commercial Commitments | ||||||||||||||||||
The following tables summarize our approximate minimum contractual obligations and commercial commitments as of December 31, 2013: | ||||||||||||||||||
Payments Due in Period | ||||||||||||||||||
Total | Within | Years | Years | More than | ||||||||||||||
1 Year | 1 - 3 | 4 - 5 | 5 Years | |||||||||||||||
Leases | $ | 108,000 | $ | 100,000 | $ | 8,000 | $ | - | $ | - | ||||||||
Employment Contracts | 788,000 | 350,000 | 438,000 | - | - | |||||||||||||
Total | $ | 896,000 | $ | 450,000 | $ | 446,000 | $ | - | $ | - | ||||||||
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 consolidated financial statements for the year ended December 31, 2013 include product revenues and cost of goods sold adjustments of approximately $216,00 and $110,000, respectively, reflecting estimates of the financial impact of product recalled to the Company. This recall and the related circumstances could subject the Company to claims or proceedings by consumers, the FDA or other regulatory authorities which may adversely impact the Company’s sales and revenues. The Company has fully reserved the recalled product and will destroy the respective product by April 20, 2014. | ||||||||||||||||||
Other_Assets
Other Assets | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||
Other Assets [Abstract] | ' | ' | |||||||
Other Assets | ' | ' | |||||||
14. Other Assets | Note 4 - Prepaid Expenses and Other Current Assets | ||||||||
License and Supply Agreement | Prepaid expenses and other current assets as of December 31, 2013 and 2012 were as follows: | ||||||||
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. | December 31, | ||||||||
2013 | 2012 | ||||||||
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. | Prepaid insurance premiums | $ | 70,000 | $ | 78,000 | ||||
Security deposit | 21,000 | 21,000 | |||||||
Other | 34,000 | 10,000 | |||||||
Prepaid expenses and other current assets | $ | 125,000 | $ | 109,000 | |||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 14 - Subsequent Events | |
On March 24, 2014, the Company announced the completion of a rights offering that resulted in gross proceeds of $2.1 million and the issuance of 7,140,822 shares of common stock. A portion of the proceeds was used for the repayment of the $1.5 million note issued to Lambda Investors LLC in November 2013 in connection with its loan to the Company, plus $61,000 of accrued interest thereon. The Company issued a total of 7,140,822 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. | |
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 through 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. The Company will receive a total of €450,000 in upfront fees in connection with the First Amendment, half of which were paid on February 19, 2014, and the other half of which are payable on March 31, 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. | |
Basis_of_Presentation_and_Goin1
Basis of Presentation and Going Concern (Policies) | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||
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. | ||||||||||
Principles of Consolidation and Basis of Presentation | ' | ' | ||||||||
Principles of Consolidation and Basis of Presentation | ||||||||||
The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Nephros International Limited. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||
These consolidated financial statements were approved by management and the Board of Directors and are available for issuance as of the date of the audit opinion. Subsequent events have been evaluated through this date. | ||||||||||
Use of Estimates | ' | ' | ||||||||
Use of Estimates | Use of Estimates in the Preparation of Financial Statements | |||||||||
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. | The preparation of consolidated 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. Certain prior year amounts have been reclassified to conform to the current year presentation. | |||||||||
Going Concern and Managementbs Response | ' | ' | ||||||||
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 accompanying consolidated 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 consolidated 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 Company has incurred significant losses in operations in each quarter since inception. For the years ended December 31, 2013 and 2012, the Company has incurred net losses of $3,698,000 and $3,262,000, respectively. In addition, the Company has not generated positive cash flow from operations for the years ended December 31, 2013 and 2012. 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. | The voluntary recalls of point of use (POU) and DSU in-line ultrafilters 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 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 June 27, 2011, the Company entered into a License Agreement, effective July 1, 2011, with Bellco S.r.l., as licensee (“Bellco”), an Italy-based supplier of hemodialysis and intensive care products, for the manufacturing, marketing and sale of Nephros’ patented mid-dilution dialysis filters. This Agreement provided the Company with payments of €500,000, €750,000, and €600,000 on July 1, 2011, January 15, 2012 and January 15, 2013, respectively. 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. As a result of the amendment, the Company will receive a total of €450,000 in upfront fees in connection with the First Amendment, half of which were paid on February 19, 2014, and the other half of which are payable on March 31, 2014. See Note 12, Commitments and Contingencies for further discussion. | ||||||||||
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. | ||||||||||
On February 4, 2013 and November 12, 2013, the Company issued senior secured notes to Lambda Investors LLC in the principal amount of $1.3 million and $1.5 million, respectively. As of December 31, 2013, the $1.5 million note is outstanding. The $1.3 million note was repaid on May 22, 2013. For a more detailed discussion of the terms of the senior secured notes, see Note 6, Senior Secured Notes. | ||||||||||
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. | ||||||||||
On March 21, 2014 the Company completed a rights offering which resulted in gross proceeds of $2.1 million. See Note 14, Subsequent Events, for further discussion. | ||||||||||
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. | ||||||||||
Cash and Cash Equivalents | ' | ' | ||||||||
Cash and Cash Equivalents | ||||||||||
The Company invests its excess cash in bank deposits and money market accounts. The Company considers all highly liquid investments purchased with original maturities of three months or less from the date of purchase to be cash equivalents. Cash equivalents are carried at fair value, which approximate cost, and primarily consist of money market funds maintained at major U.S. financial institutions. | ||||||||||
Accounts Receivable | ' | ' | ||||||||
Accounts Receivable | ||||||||||
The Company provides credit terms to customers in connection with purchases of the Company’s products. Management periodically reviews customer account activity in order to assess the adequacy of the allowances provided for potential collection issues and returns. Factors considered include economic conditions, each customer’s payment and return history and credit worthiness. Adjustments, if any, are made to reserve balances following the completion of these reviews to reflect management’s best estimate of potential losses. There were no allowances for doubtful accounts at December 31, 2013 or 2012. There was no allowance for sales returns at December 31, 2013 or 2012. There were no write offs of accounts receivable to bad debt expense during 2013 or 2012. | ||||||||||
Inventory | ' | ' | ||||||||
Inventory | ||||||||||
The Company engages third parties to manufacture and package inventory held for sale, takes title to certain inventory once manufactured, and warehouses such goods until packaged for final distribution and sale. Inventory consists of finished goods and raw materials (fiber) held at the manufacturers’ facilities, and are valued at the lower of cost or market using the first-in, first-out method. The Company’s inventory reserve requirements are based on factors including the products’ expiration date and estimates for the future sales of the product. If estimated sales levels do not materialize, the Company will make adjustments to its assumptions for inventory reserve requirements. | ||||||||||
In March 2014, the Company requested the closeout of its October 2013 voluntary product recall. The Company has fully reserved the recalled product and will destroy the respective product by April 20, 2014. | ||||||||||
Patents | ' | ' | ||||||||
Patents | ||||||||||
The Company has filed numerous patent applications with the United States Patent and Trademark Office and in foreign countries. All costs and direct expenses incurred in connection with patent applications have been expensed as incurred. | ||||||||||
Property and Equipment, net | ' | ' | ||||||||
Property and Equipment, net | ||||||||||
Property and equipment, net is stated at cost less accumulated depreciation. These assets are depreciated over their estimated useful lives of three to seven years using the straight line method. | ||||||||||
Impairment for Long-Lived Assets | ' | ' | ||||||||
Impairment for Long-Lived Assets | ||||||||||
The Company adheres to Accounting Standards Codification (“ASC”) Topic 360 and periodically evaluates whether current facts or circumstances indicate that the carrying value of its depreciable assets to be held and used may be recoverable. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived assets, or the appropriate grouping of assets, is compared to the carrying value to determine whether impairment exists. If an asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its carrying value. An estimate of the asset’s fair value is based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including a discounted value of estimated future cash flows. The Company reports an asset to be disposed of at the lower of its carrying value or its estimated net realizable market value. There were no impairment losses for long-lived assets recorded for the years ended December 31, 2013 and December 31, 2012. | ||||||||||
Fair Value of Financial Instruments | ' | ' | ||||||||
Fair Value of Financial Instruments | ||||||||||
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term maturity of these instruments. | ||||||||||
Revenue Recognition | ' | ' | ||||||||
Revenue Recognition | ||||||||||
Revenue is recognized in accordance with ASC Topic 605. Four basic criteria must be met before revenue can be recognized: (i) persuasive evidence of 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. All shipments are currently received directly by the Company’s customers. | ||||||||||
Deferred revenue was approximately $703,000 and $1,414,000 on the accompanying consolidated balance sheets as of December 31, 2013 and 2012, respectively, and is related to the License Agreement with Bellco. The Company has recognized approximately $1,756,000 of revenue related to this license agreement to date, including approximately $711,000 for the year ended December 31, 2013, resulting in $703,000 being deferred over the remainder of the expected obligation period. 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 $703,000 for each of the year ending December 31, 2014. Total payments of approximately $2,459,000, including the final payment of approximately $791,000 received in January 2013, were related to the License Agreement with Bellco. | ||||||||||
Shipping and Handling Costs | ' | ' | ||||||||
Shipping and Handling Costs | ||||||||||
Shipping and handling costs are recorded as cost of goods sold and are approximately $30,000 and $33,000 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||
Research and Development Costs | ' | ' | ||||||||
Research and Development Costs | ||||||||||
Research and development costs are expensed as incurred. | ||||||||||
Stock-Based Compensation | ' | ' | ||||||||
Stock-Based Compensation | ||||||||||
The Company accounts for stock-based compensation in accordance with ASC Topic 718 by recognizing the fair value of stock-based compensation in the consolidated statement of operations and comprehensive loss. The fair value of the Company’s stock option awards are estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions and elections including expected stock price volatility and the estimated life of each award. In addition, the calculation of compensation costs requires that the Company estimate the number of awards that will be forfeited during the vesting period. The fair value of stock-based awards is amortized over the vesting period of the award. For stock-based awards that vest based on performance conditions (e.g. achievement of certain milestones), expense is recognized when it is probable that the condition will be met. | ||||||||||
Amortization of Debt Issuance Costs | ' | ' | ||||||||
Amortization of Debt Issuance Costs | ||||||||||
The Company accounts for debt issuance costs in accordance with ASC 835, which requires that costs paid directly to the issuer of the notes be reported in the balance sheet as a debt discount and amortized over the term of the associated debt. Debt issuance costs of $399,000 for the year ended December 31, 2013 are associated with the senior secured notes issued to Lambda Investors LLC on February 4, 2013 and November 12, 2013. Approximately $257,000 of these costs were amortized as of December 31, 2013 and are included in amortization of debt discount on the consolidated statements of operations and comprehensive loss. There were no debt issuance costs for the year ended December 31, 2012. | ||||||||||
Other Income (Expense), net | ' | ' | ||||||||
Other Income (Expense), net | ||||||||||
Other income (expense), net, of approximately $33,000 includes approximately $50,000 of other expense for the year ended December 31, 2013, primarily due to approximately $36,000 related to foreign currency losses and approximately $14,000 related to the May 2013 rights offering warrant modification. Other expense was partially offset by other income of approximately $17,000, which consisted primarily of a refund of approximately $15,000 received as a result of the Steris agreement termination. Other income (expense), net, in the amount of approximately $14,000 for the year ended December 31, 2012 is due primarily to approximately $18,000 in write-offs of old vendor invoices which are no longer due, offset partially by approximately $4,000 of net foreign currency losses on invoices paid to and due to an international supplier. | ||||||||||
Income Taxes | ' | ' | ||||||||
Income Taxes | ||||||||||
The Company accounts for income taxes in accordance with ASC Topic 740, which requires accounting for deferred income taxes under the asset and liability method. Deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable in future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. | ||||||||||
For financial reporting purposes, the Company has incurred a loss in each period since its inception. Based on available objective evidence, including the Company’s history of losses, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets at December 31, 2013 and 2012. | ||||||||||
ASC Topic 740 prescribes, among other things, a recognition threshold and measurement attributes for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return. ASC 740 utilizes a two-step approach for evaluating uncertain tax positions. Step one, or recognition, requires a company to determine if the weight of available evidence indicates a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. Step two, or measurement, is based on the largest amount of benefit, which is more likely than not to be realized on settlement with the taxing authority. The Company is subject to income tax examinations by major taxing authorities for all tax years subsequent to 2010. The adoption of the provisions of ASC 740 did not have a material impact on the Company’s consolidated financial statements. During the years ended December 31, 2013 and 2012, the Company recognized no adjustments for uncertain tax positions. However, management’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulation and interpretations, thereof. | ||||||||||
Loss per Common Share | ' | ' | ||||||||
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 and the exercise of stock options and warrants. The following securities have been excluded from the dilutive per share computation as they are antidilutive: | ||||||||||
2013 | 2012 | |||||||||
Stock options | 2,410,134 | 2,294,714 | ||||||||
Warrants | 13,887,598 | 14,679,971 | ||||||||
Unvested restricted stock | 75,450 | - | ||||||||
Foreign Currency Translation | ' | ' | ||||||||
Foreign Currency Translation | ||||||||||
Foreign currency translation is recognized in accordance with ASC Topic 830. The functional currency of Nephros International Limited is the Euro and its translation gains and losses are included in accumulated other comprehensive income. The balance sheet is translated at the year-end rate. The statement of operations is translated at the weighted average rate for the year. | ||||||||||
Comprehensive Income (Loss) | ' | ' | ||||||||
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 years ended December 31, 2013 and 2012, the comprehensive loss was approximately $3,700,000 and $3,235,000, respectively. | ||||||||||
Recently Adopted Accounting Pronouncements | ' | ' | ||||||||
Recently Adopted Accounting Pronouncements | ||||||||||
There were no recent accounting pronouncements that are expected to have an effect on the Company’s consolidated financial statements. | ||||||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | ' | |||||||||||||
Schedule Of Securities Excluded From Dilutive Per Share Computation | ' | ' | |||||||||||||
The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: | The following securities have been excluded from the dilutive per share computation as they are antidilutive: | ||||||||||||||
Six Months Ended | 2013 | 2012 | |||||||||||||
June 30, | Stock options | 2,410,134 | 2,294,714 | ||||||||||||
2014 | 2013 | Warrants | 13,887,598 | 14,679,971 | |||||||||||
Shares underlying warrants outstanding | 16,819,881 | 13,910,395 | Unvested restricted stock | 75,450 | - | ||||||||||
Shares underlying options outstanding | 2,424,612 | 2,380,644 | |||||||||||||
Unvested restricted stock | - | 264,770 | |||||||||||||
Concentration_of_Credit_Risk_T
Concentration of Credit Risk (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Sales Revenue [Member] | ' | ||||||||
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] | ' | ||||||||
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 | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |||||||||||||||||||||||
Schedule Of Fair Value Assumptions | ' | ' | |||||||||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the below assumptions related to risk-free interest rates, expected dividend yield, expected lives and expected stock price volatility. | |||||||||||||||||||||||||
Option Pricing Assumptions | |||||||||||||||||||||||||
Grant Year | 2013 | 2012 | |||||||||||||||||||||||
Stock Price Volatility | 127.46-135.98 | % | 123.48 –128.54 | % | |||||||||||||||||||||
Risk-Free Interest Rates | 1.09-1.75 | % | .093-1.32 | % | |||||||||||||||||||||
Expected Life (in years) | 5.00-6.25 | 5.75-62.5 | |||||||||||||||||||||||
Expected Dividend Yield | 0 | % | 0 | % | |||||||||||||||||||||
Summary Of Information About Stock Options Outstanding And Exercisable | ' | ' | |||||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Range of Exercise | Number | Weighted | Weighted | Number | Weighted | ||||||||||||||||||||
Price | Outstanding as | Average | Average | Exercisable as | Average | ||||||||||||||||||||
of December | Remaining | Exercise | of | Exercise Price | |||||||||||||||||||||
31, 2013 | Contractual | Price | December 31, | ||||||||||||||||||||||
Life in | 2013 | ||||||||||||||||||||||||
Years | |||||||||||||||||||||||||
$0.41 - $2.60 | 2,374,514 | 8.16 | $ | 0.93 | 1,349,579 | $ | 0.83 | ||||||||||||||||||
$15.00 - $29.80 | 27,909 | 4.58 | $ | 17.82 | 27,909 | $ | 17.82 | ||||||||||||||||||
$34.20-$96.00 | 7,711 | 1.38 | $ | 51.49 | 7,711 | $ | 51.49 | ||||||||||||||||||
Total Outstanding | 2,410,134 | $ | 1.28 | 1,385,199 | $ | 1.46 | |||||||||||||||||||
Summary Of Option Activity | ' | ' | |||||||||||||||||||||||
The following table summarizes the option activity for the year ended December 31, 2013: | |||||||||||||||||||||||||
Shares | Weighted | ||||||||||||||||||||||||
Average | |||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||
Price | |||||||||||||||||||||||||
Outstanding at December 31, 2012 | 2,294,714 | $ | 2.14 | ||||||||||||||||||||||
Options granted | 237,315 | 0.64 | |||||||||||||||||||||||
Options exercised | - | - | |||||||||||||||||||||||
Options forfeited or expired | (121,895 | ) | 3.27 | ||||||||||||||||||||||
Outstanding at December 31, 2013 | 2,410,134 | $ | 1.28 | ||||||||||||||||||||||
Exercisable at December 31, 2013 | 1,385,199 | $ | 1.46 | ||||||||||||||||||||||
Vested and expected to vest at December 31, 2013 | 2,350,688 | $ | 1.29 | ||||||||||||||||||||||
Summary Of Restricted Stock Activity | ' | ' | |||||||||||||||||||||||
The following table summarizes restricted stock activity for the year end December 31, 2013: | |||||||||||||||||||||||||
Shares | Weighted | ||||||||||||||||||||||||
Average | |||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Nonvested at December 31, 2012 | - | $ | - | ||||||||||||||||||||||
Granted | 398,227 | 0.73 | |||||||||||||||||||||||
Vested | -264,770 | 0.71 | |||||||||||||||||||||||
Forfeited | -58,007 | 0.88 | |||||||||||||||||||||||
Nonvested at December 31, 2013 | 75,450 | $ | 0.66 | ||||||||||||||||||||||
Summary Of Terms Of Outstanding Warrants | ' | ' | |||||||||||||||||||||||
The following table summarizes certain terms of all of the Company’s outstanding warrants at December 31, 2013 and 2012: | |||||||||||||||||||||||||
Total Outstanding Warrants at December 31, 2013 | |||||||||||||||||||||||||
Title of Warrant | Date Issued | Expiry Date | Exercise Price | Total Common | |||||||||||||||||||||
Shares Issuable | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Class D Warrants - Lambda | 11/14/07 | 3/10/17 | $ | 0.4 | 8,806,575 | 8,806,575 | |||||||||||||||||||
July 2009 Warrants | 7/24/09 | 7/24/14 | $ | 22.4 | 33,629 | 33,629 | |||||||||||||||||||
Shareholder Rights Offering Warrants | 3/10/11 | 3/10/16 | $ | 0.4 | 2,264,817 | 3,057,190 | |||||||||||||||||||
March 2011 Lambda Warrants | 3/10/11 | 3/10/17 | $ | 0.4 | 2,782,577 | 2,782,577 | |||||||||||||||||||
13,887,598 | 14,679,971 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class D Warrants [Member] | ' | ' | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | |||||||||||||||||||||||
Summary Of Terms Of Outstanding Warrants | ' | ' | |||||||||||||||||||||||
The following table summarizes the Class D outstanding warrants at December 31, 2013 and 2012: | |||||||||||||||||||||||||
Lambda Investors | Other Investors | Total Shares to be issued | |||||||||||||||||||||||
As of December 31, 2011 | 8,806,575 | 447,197 | 9,253,772 | ||||||||||||||||||||||
Exercised in 2012 | - | (352,034 | ) | (352,034 | ) | ||||||||||||||||||||
Expired in 2012 | - | (95,163 | ) | (95,163 | ) | ||||||||||||||||||||
As of December 31, 2012 | 8,806,575 | - | 8,806,575 | ||||||||||||||||||||||
Exercised in 2013 | - | - | - | ||||||||||||||||||||||
Expired in 2013 | - | - | - | ||||||||||||||||||||||
As of December 31, 2013 | 8,806,575 | - | 8,806,575 | ||||||||||||||||||||||
Loss_per_Common_Share_Tables
Loss per Common Share (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | Dec. 31, 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: | The following securities have been excluded from the dilutive per share computation as they are antidilutive: | ||||||||||||||
Six Months Ended | 2013 | 2012 | |||||||||||||
June 30, | Stock options | 2,410,134 | 2,294,714 | ||||||||||||
2014 | 2013 | Warrants | 13,887,598 | 14,679,971 | |||||||||||
Shares underlying warrants outstanding | 16,819,881 | 13,910,395 | Unvested restricted stock | 75,450 | - | ||||||||||
Shares underlying options outstanding | 2,424,612 | 2,380,644 | |||||||||||||
Unvested restricted stock | - | 264,770 | |||||||||||||
Inventory_net_Tables
Inventory, net (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||
Inventory Disclosure [Abstract] | ' | ' | |||||||||||||||
Schedule Of Inventory, Current | ' | ' | |||||||||||||||
The Company’s inventory as of June 30, 2014 and December 31, 2013 was as follows: | The Company’s inventory components as of December 31, 2013 and 2012 were as follows: | ||||||||||||||||
Unaudited | Audited | December 31, | |||||||||||||||
June 30, 2014 | December 31, 2013 | 2013 | 2012 | ||||||||||||||
Total Gross Inventory, Finished Goods | $ | 255,000 | $ | 527,000 | Total Gross Inventory, Finished Goods | $ | 527,000 | $ | 581,000 | ||||||||
Less: Inventory reserve | -92,000 | -365,000 | Less: Inventory reserve | -365,000 | -269,000 | ||||||||||||
Total Inventory | $ | 163,000 | $ | 162,000 | Total Inventory | $ | 162,000 | $ | 312,000 | ||||||||
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets [Abstract] | ' | |||||||
Schedule Of Prepaid Expenses And Other Current Assets | ' | |||||||
Prepaid expenses and other current assets as of December 31, 2013 and 2012 were as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Prepaid insurance premiums | $ | 70,000 | $ | 78,000 | ||||
Security deposit | 21,000 | 21,000 | ||||||
Other | 34,000 | 10,000 | ||||||
Prepaid expenses and other current assets | $ | 125,000 | $ | 109,000 | ||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||
Property and Equipment, Net | ' | |||||||||||
Property and equipment as of December 31, 2013 and 2012 was as follows: | ||||||||||||
December 31, | ||||||||||||
Life | 2013 | 2012 | ||||||||||
Manufacturing equipment | 3-5 years | $ | 599,000 | $ | 602,000 | |||||||
Research equipment | 5 years | 37,000 | 37,000 | |||||||||
Computer equipment | 3-4 years | 59,000 | 59,000 | |||||||||
Furniture and fixtures | 7 years | 39,000 | 39,000 | |||||||||
Property and equipment, gross | 734,000 | 737,000 | ||||||||||
Less: accumulated depreciation | 727,000 | 721,000 | ||||||||||
Property and equipment, net | $ | 7,000 | $ | 16,000 | ||||||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule Of Accrued Expenses | ' | ||||||||
Accrued expenses as of December 31, 2013 and 2012 were as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued Legal | $ | 149,000 | $ | 90,000 | |||||
Accrued Product Recall | 60,000 | ||||||||
Accrued Directors’ Compensation | - | 77,000 | |||||||
Accrued Management Bonus | 81,000 | - | |||||||
Accrued Interest | 39,000 | - | |||||||
Accrued Travel | - | 84,000 | |||||||
Accrued Other | 36,000 | 70,000 | |||||||
Accrued Expenses | $ | 365,000 | $ | 321,000 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Reconciliation Of Income Tax Provision At Statutory Rate | ' | ||||||||
A reconciliation of the income tax provision computed at the statutory tax rate to the Company’s effective tax rate is as follows: | |||||||||
2013 | 2012 | ||||||||
U.S. federal statutory rate | 35 | % | 35 | % | |||||
State & local taxes | 5.22 | % | 5.36 | % | |||||
Tax on foreign operations | 0.4 | % | -0.78 | % | |||||
State research and development credits | 1.09 | % | 1.06 | % | |||||
Other | -3 | % | -2.29 | % | |||||
Valuation allowance | -38.71 | % | -38.35 | % | |||||
Effective tax rate | - | - | |||||||
Significant Components Of Deferred Tax Assets | ' | ||||||||
Significant components of the Company’s deferred tax assets as of December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carry forwards | $ | 27,029,000 | $ | 25,721,000 | |||||
Research and development credits | 1,096,000 | 1,054,000 | |||||||
Nonqualified stock option compensation expense | 1,801,000 | 1,701,000 | |||||||
Other temporary book - tax differences | 408,000 | 441,000 | |||||||
Total deferred tax assets | 30,334,000 | 28,917,000 | |||||||
Valuation allowance for deferred tax assets | -30,334,000 | -28,917,000 | |||||||
Net deferred tax assets | $ | - | $ | - | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Contractual Obligations and Commercial Commitments | ' | ||||||||||||||||
The following tables summarize our approximate minimum contractual obligations and commercial commitments as of December 31, 2013: | |||||||||||||||||
Payments Due in Period | |||||||||||||||||
Total | Within | Years | Years | More than | |||||||||||||
1 Year | 1 - 3 | 4 - 5 | 5 Years | ||||||||||||||
Leases | $ | 108,000 | $ | 100,000 | $ | 8,000 | $ | - | $ | - | |||||||
Employment Contracts | 788,000 | 350,000 | 438,000 | - | - | ||||||||||||
Total | $ | 896,000 | $ | 450,000 | $ | 446,000 | $ | - | $ | - | |||||||
Organization_and_Nature_of_Ope1
Organization and Nature of Operations (Details Textual) | 12 Months Ended |
Dec. 31, 2013 | |
Product | |
Organization And Nature Of Operations [Line Items] | ' |
Number of products in development | 2 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Schedule Of Securities Excluded From Dilutive Per Share Computation) (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock options [Member] | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Excluded anti-dilutive stock options and warrants | ' | ' | 2,410,134 | 2,294,714 |
Warrant [Member] | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Excluded anti-dilutive stock options and warrants | 16,819,881 | 13,910,395 | 13,887,598 | 14,679,971 |
Unvested restricted stock [Member] | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Excluded anti-dilutive stock options and warrants | 0 | 264,770 | 75,450 | 0 |
Basis_of_Presentation_and_Goin2
Basis of Presentation and Going Concern (Details Textual) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||||||||
Mar. 21, 2014 | 22-May-13 | Jan. 31, 2013 | Jan. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 21, 2014 | Mar. 24, 2014 | Mar. 31, 2014 | Feb. 19, 2014 | Dec. 31, 2013 | Nov. 12, 2013 | Feb. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 15, 2013 | Jan. 15, 2012 | Jul. 01, 2011 | Jun. 30, 2014 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | Warrant [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Lambda Investors [Member] | Lambda Investors [Member] | Lambda Investors [Member] | Lambda Investors [Member] | Steris Agreement Termination [Member] | Scenario Forecast [Member] | Scenario Forecast [Member] | Nonsoftware License Arrangement [Member] | Maximum [Member] | Minimum [Member] | Bellco [Member] | Bellco [Member] | Bellco [Member] | Bellco [Member] | Bellco [Member] | |
USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | USD ($) | USD ($) | USD ($) | Senior Notes [Member] | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | EUR (€) | USD ($) | Nonsoftware License Arrangement [Member] | ||||||||||||||
USD ($) | USD ($) | ||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | ($654,000) | ($671,000) | ($1,414,000) | ' | ($1,912,000) | ($3,698,000) | ($3,262,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' |
Senior notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | '3 years | ' | ' | ' | ' | ' |
Deferred revenue | ' | ' | ' | ' | 873,000 | ' | 873,000 | ' | ' | 703,000 | 1,414,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,203,000 | 703,000 |
Licensing revenues | ' | ' | ' | ' | 193,000 | 184,000 | 448,000 | ' | 359,000 | 711,000 | 680,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,756,000 | ' | ' | ' | ' | ' | ' | ' |
Recognition of deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 703,000 | 703,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments received | ' | ' | ' | 2,459,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivable related to license agreement | ' | ' | 791,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shipping and handling costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | 33,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of debt issuance costs | ' | ' | ' | ' | 0 | 0 | 142,000 | ' | 204,000 | 257,000 | 0 | ' | ' | ' | ' | ' | 399,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expense) | ' | ' | ' | ' | -1,000 | -19,000 | -4,000 | ' | -27,000 | -33,000 | 14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to liabilities and foreign currency losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,000 | ' | 14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive loss | ' | ' | ' | ' | -655,000 | -673,000 | -1,416,000 | ' | -1,914,000 | -3,700,000 | -3,235,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable, Write-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales Returns and Allowances, Goods, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest and Other Income, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Expenses, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Upfront Fees And Connection Of First Amendment | ' | ' | ' | ' | ' | ' | 612,000 | 450,000 | ' | ' | ' | ' | ' | ' | 225,000 | 225,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of notes payable | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | 2,100,000 | ' | ' | ' | ' | ' | 2,013,000 | ' | 2,771,000 | 2,771,000 | 0 | ' | 2,100,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Income Write Off | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency transaction loss before tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration_of_Credit_Risk_D
Concentration of Credit Risk (Details Textual) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Concentration Of Credit Risk [Line Items] | ' | ' |
Number Of Major Customers | 3 | 3 |
Sales Revenue [Member] | ' | ' |
Concentration Of Credit Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 86.00% | 68.00% |
Accounts Receivable [Member] | ' | ' |
Concentration Of Credit Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 97.00% | 88.00% |
Concentration_of_Credit_Risk_D1
Concentration of Credit Risk (Details) | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Sales Revenue Goods Net [Member] | Sales Revenue Goods Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Customer C [Member] | Customer C [Member] | Customer C [Member] | |
Sales Revenue Goods Net [Member] | Sales Revenue Goods Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Sales Revenue Goods Net [Member] | Sales Revenue Goods Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Sales Revenue Goods Net [Member] | Sales Revenue Goods Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |||||
Concentration Of Credit Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | 86.00% | 68.00% | 97.00% | 88.00% | 59.00% | 33.00% | 56.00% | 69.00% | 20.00% | 29.00% | 35.00% | 0.00% | 4.00% | 24.00% | 0.00% | 28.00% |
Revenue_Recognition_Details_Te
Revenue Recognition (Details Textual) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 |
Bellco [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ' | ' | ' | ' |
Deferred revenue | $873,000 | $703,000 | $1,414,000 | $2,203,000 |
Revenue recognized | ' | ' | ' | $448,000 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 1.91% | 1.75% | 1.32% |
Volatility | 133.40% | 135.98% | 128.54% |
Expected term | '6 years 3 months | '6 years 3 months | '62 years 6 months |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 1.76% | 1.09% | 0.09% |
Volatility | 129.20% | 127.46% | 123.48% |
Expected term | '5 years 9 months | '5 years | '5 years 9 months |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock Price Volatility | 133.40% | 135.98% | 128.54% |
Risk-Free Interest Rates | 1.91% | 1.75% | 1.32% |
Expected Life (in years) | '6 years 3 months | '6 years 3 months | '62 years 6 months |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock Price Volatility | 129.20% | 127.46% | 123.48% |
Risk-Free Interest Rates | 1.76% | 1.09% | 0.09% |
Expected Life (in years) | '5 years 9 months | '5 years | '5 years 9 months |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding, Number Outstanding as of December 31, 2013 | 2,410,134 |
Options Outstanding, Weighted Average Exercise Price | $1.28 |
Options Exercisable, Number Exercisable as of December 31, 2013 | 1,385,199 |
Options Exercisable, Weighted Average Exercise Price | $1.46 |
$0.41 - $2.60 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price, Lower Range | $0.41 |
Range of Exercise Price, Upper Range | $2.60 |
Options Outstanding, Number Outstanding as of December 31, 2013 | 2,374,514 |
Options Outstanding, Weighted Average Remaining Contractual Life In Years | '8 years 1 month 28 days |
Options Outstanding, Weighted Average Exercise Price | $0.93 |
Options Exercisable, Number Exercisable as of December 31, 2013 | 1,349,579 |
Options Exercisable, Weighted Average Exercise Price | $0.83 |
$15.00 - $29.80 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price, Lower Range | $15 |
Range of Exercise Price, Upper Range | $29.80 |
Options Outstanding, Number Outstanding as of December 31, 2013 | 27,909 |
Options Outstanding, Weighted Average Remaining Contractual Life In Years | '4 years 6 months 29 days |
Options Outstanding, Weighted Average Exercise Price | $17.82 |
Options Exercisable, Number Exercisable as of December 31, 2013 | 27,909 |
Options Exercisable, Weighted Average Exercise Price | $17.82 |
$34.20-$96.00 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price, Lower Range | $34.20 |
Range of Exercise Price, Upper Range | $96 |
Options Outstanding, Number Outstanding as of December 31, 2013 | 7,711 |
Options Outstanding, Weighted Average Remaining Contractual Life In Years | '1 year 4 months 17 days |
Options Outstanding, Weighted Average Exercise Price | $51.49 |
Options Exercisable, Number Exercisable as of December 31, 2013 | 7,711 |
Options Exercisable, Weighted Average Exercise Price | $51.49 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 3) (USD $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares, Outstanding at beginning of year | 2,410,134 | 2,294,714 | ' |
Shares, Options granted | 302,519 | 237,315 | 1,547,550 |
Shares, Options exercised | ' | 0 | ' |
Options forfeited or expired | ' | -121,895 | ' |
Shares, Outstanding at end of year | ' | 2,410,134 | 2,294,714 |
Shares, Exercisable at end of year | ' | 1,385,199 | ' |
Shares, Vested and expected to vest | ' | 2,350,688 | ' |
Weighted Average Exercise Price, Outstanding at beginning of year | $1.28 | $2.14 | ' |
Weighted Average Exercise Price, Options granted | ' | $0.64 | ' |
Weighted Average Exercise Price, Options exercised | ' | $0 | ' |
Weighted Average Exercise Price, Options forfeited or expired | ' | $3.27 | ' |
Weighted Average Exercise Price, Outstanding at end of year | ' | $1.28 | $2.14 |
Weighted Average Exercise Price, Exercisable at end of year | ' | $1.46 | ' |
Weighted Average Exercise Price, Vested and expected to vest at end of year | ' | $1.29 | ' |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details 4) (USD $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Warrant or Right [Line Items] | ' | ' | ' |
Shares, Granted | 302,519 | 237,315 | 1,547,550 |
Weighted Average Grant Date Fair Value, Granted | ' | $0.56 | $1.03 |
Restricted Stock [Member] | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' |
Shares, Nonvested at December 31, 2012 | ' | 0 | ' |
Shares, Granted | ' | 398,227 | ' |
Shares, Vested | ' | -264,770 | ' |
Shares, Forfeited | ' | -58,007 | ' |
Shares, Nonvested at December 31, 2013 | ' | 75,450 | ' |
Weighted Average Grant Date Fair Value, Nonvested at December 31, 2012 | ' | $0 | ' |
Weighted Average Grant Date Fair Value, Granted | ' | $0.73 | ' |
Weighted Average Grant Date Fair Value, Vested | ' | $0.71 | ' |
Weighted Average Grant Date Fair Value, Forfeited | ' | $0.88 | ' |
Weighted Average Grant Date Fair Value, Nonvested at December 31, 2013 | ' | $0.66 | ' |
StockBased_Compensation_Detail5
Stock-Based Compensation (Details 5) (USD $) | Jun. 30, 2014 | Mar. 14, 2014 | Dec. 31, 2013 | 17-May-13 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
July 2009 Warrants [Member] | July 2009 Warrants [Member] | March 2011 Lambda Warrants [Member] | March 2011 Lambda Warrants [Member] | Shareholder Rights Offering Warrants [Member] | Shareholder Rights Offering Warrants [Member] | Class D Warrants - Lambda [Member] | Class D Warrants - Lambda [Member] | Class D Warrants - Lambda [Member] | ||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date Issued | ' | ' | ' | ' | ' | 24-Jul-09 | ' | 10-Mar-11 | ' | 10-Mar-11 | ' | 14-Nov-07 | ' | ' |
Expiry Date | ' | ' | ' | ' | ' | 24-Jul-14 | ' | 10-Mar-17 | ' | 10-Mar-16 | ' | 10-Mar-17 | ' | ' |
Total Common Shares Issuable | ' | ' | 13,887,598 | ' | 14,679,971 | 33,629 | 33,629 | 2,782,577 | 2,782,577 | 2,264,817 | 3,057,190 | 8,806,575 | 8,806,575 | 8,806,575 |
Exercise Price | $0.30 | $0.30 | $0.45 | $0.60 | $0.45 | $22.40 | ' | $0.40 | ' | $0.40 | ' | $0.40 | ' | ' |
StockBased_Compensation_Detail6
Stock-Based Compensation (Details 6) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Warrant or Right [Line Items] | ' | ' |
Outstanding warrants at end of year | 13,887,598 | 14,679,971 |
Class D Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Outstanding warrants at beginning of year | 8,806,575 | 9,253,772 |
Exercised | 0 | -352,034 |
Expired | 0 | -95,163 |
Outstanding warrants at end of year | 8,806,575 | 8,806,575 |
Class D Warrants - Lambda [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Outstanding warrants at beginning of year | 8,806,575 | 8,806,575 |
Exercised | 0 | 0 |
Expired | 0 | 0 |
Outstanding warrants at end of year | 8,806,575 | 8,806,575 |
Class D Warrants - Other [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Outstanding warrants at beginning of year | 0 | 447,197 |
Exercised | 0 | -352,034 |
Expired | 0 | -95,163 |
Outstanding warrants at end of year | 0 | 0 |
StockBased_Compensation_Detail7
Stock-Based Compensation (Details Textual) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Mar. 21, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 14, 2014 | 17-May-13 | Jun. 15, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Mr. Kochansk [Member] | Mr. Kochansk [Member] | Selling, General and Administrative Expenses [Member] | Research and Development Expense [Member] | Shareholders Equity [Member] | Right Offering [Member] | Right Offering [Member] | Class D Warrant [Member] | Class D Warrant Lambda [Member] | Shareholder Rights Offering Warrant [Member] | Shareholder Rights Offering Warrant [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | CEO Stock Options [Member] | Restricted Stock [Member] | 2000 Plan [Member] | 2000 Plan [Member] | 2000 Plan [Member] | 2000 Plan [Member] | 2000 Plan [Member] | 2004 Plan [Member] | 2004 Plan [Member] | 2004 Plan [Member] | 2004 Plan [Member] | 2004 Plan [Member] | 2004 Plan [Member] | ||||||||
Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Non Employee Stock Options [Member] | Non Employee Stock Options [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Non Employee Stock Options [Member] | Non Employee Stock Options [Member] | |||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 106,538 | ' | ' | ' | ' | 4,500,000 | ' | ' | ' | ' | ' |
Options outstanding | ' | ' | ' | 2,410,134 | 2,294,714 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,003 | 7,230 | 831 | 2,053 | ' | ' | 1,360,059 | 1,316,628 | 715,692 | 637,253 |
Shares available for future grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,407,318 | 19,904 | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 331,550 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options life | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | $224,000 | $206,000 | $418,000 | $443,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation expense per share | ' | ' | ' | 0.03 | 0.04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options vested | ' | ' | ' | 519,000 | 506,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares, Options granted | ' | 302,519 | ' | 237,315 | 1,547,550 | ' | ' | ' | 90,945 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | 398,227 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average fair value of options granted | ' | ' | ' | $0.56 | $1.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options outstanding | ' | ' | ' | 0 | 793,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options vested or expected to vest | ' | ' | ' | 0 | 768,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average remaining contractual life of options vested or expected to vest | ' | ' | ' | '8 years 1 month 6 days | '8 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to non-vested options | ' | 674,000 | ' | 727,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining requisite service period for unrecognized compensation cost | ' | '2 years 1 month 6 days | ' | '2 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares purchased through warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,806,575 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Exercised | ' | 70,147 | ' | 2,254,500 | 23,720,667 | ' | ' | ' | ' | ' | ' | ' | 14,879,708 | ' | 161,708 | ' | 104,206 | 1,096,313 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | 3,238 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 687,793 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding warrants exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 352,034 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from the exercise of warrants | ' | 2,000 | ' | 248,000 | 503,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,000 | 438,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Exercised Under Cashless Exercise Provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 190,326 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock | 2,100,000 | 2,013,000 | 2,771,000 | 2,771,000 | 0 | ' | ' | ' | ' | ' | ' | ' | 206,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental Fair Value Of Inducement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options Expired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,227 | ' | 1,222 | ' | ' | ' | ' | ' | ' | ' |
Options Expired Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Mar-14 | ' | 15-Mar-14 | ' | ' | ' | ' | ' | ' | ' |
Noncash stock-based compensation | ' | 227,000 | 248,000 | 575,000 | 443,000 | ' | ' | ' | ' | 109,000 | 48,000 | ' | ' | ' | ' | ' | ' | ' | ' | 212,000 | 190,000 | 12,000 | 16,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Total | ' | 3,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 157,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee service share-based compensation, non vested awards, total compensation cost not yet recognized, share-based awards other than options | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10-Mar-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued Compensation Current | ' | ' | ' | 0 | 77,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options forfeited or expired | ' | ' | ' | -121,895 | ' | ' | ' | 90,945 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares not issued results of warrants exercised | ' | ' | ' | 374 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise Price | ' | $0.30 | ' | $0.45 | $0.45 | $0.30 | $0.60 | ' | ' | ' | ' | $0.40 | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants_Details_Textual
Warrants (Details Textual) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 21, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Warrants [Line Items] | ' | ' | ' | ' | ' |
Warrants exercised | ' | 70,147 | ' | 2,254,500 | 23,720,667 |
Stock issued during period, shares, new issues | ' | 3,238 | ' | ' | ' |
Proceeds from issuance of common stock | $2,100 | $2,013 | $2,771 | $2,771 | $0 |
Loss_per_Common_Share_Details
Loss per Common Share (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 | 13,887,598 | 14,679,971 |
Employee Stock Option [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 | ' | ' |
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 | 75,450 | 0 |
Loss_per_Common_Share_Details_
Loss per Common Share (Details Textual) (USD $) | 6 Months Ended | ||||
Jun. 30, 2014 | Mar. 14, 2014 | Dec. 31, 2013 | 17-May-13 | Dec. 31, 2012 | |
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 | $0.45 | $0.60 | $0.45 |
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 | Dec. 31, 2012 |
Inventory [Line Items] | ' | ' | ' |
Total Gross Inventory, Finished Goods | $255,000 | $527,000 | $581,000 |
Less: Inventory reserve | -92,000 | -365,000 | -269,000 |
Total Inventory | $163,000 | $162,000 | $312,000 |
Inventory_net_Details_Textual
Inventory, net (Details Textual) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Dual Stage Ultrafilter [Member] | ' |
Financing Receivable, Impaired [Line Items] | ' |
Inventory Write-down | $66,000 |
Point of use [Member] | ' |
Financing Receivable, Impaired [Line Items] | ' |
Inventory Write-down | $216,000 |
Senior_Secured_Notes_Details_T
Senior Secured Notes (Details Textual) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||
Mar. 21, 2014 | Nov. 12, 2013 | 31-May-13 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 21, 2014 | Mar. 24, 2014 | Mar. 21, 2014 | Nov. 12, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 12, 2013 | Feb. 04, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | ||||||||
Senior Notes [Member] | Senior Notes [Member] | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000 | $1,300,000 |
Debt instrument, interest rate, stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 12.00% |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12-May-14 | 4-Aug-13 |
Percentage of sourcing fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | 8.00% | 8.00% |
Transaction fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | 104,000 |
Legal fees | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' | 50,000 |
Proceeds from issuance of common stock | 2,100,000 | ' | ' | 2,013,000 | 2,771,000 | 2,771,000 | 0 | 2,100,000 | 2,100,000 | ' | ' | ' | ' | ' | ' |
Proceeds from other debt | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,500,000 | ' | ' | ' | ' | ' | ' |
Accrued Interest Issued To Investors | ' | ' | ' | ' | ' | ' | ' | 61,000 | 61,000 | ' | ' | ' | ' | ' | ' |
Amortization of debt discount (premium) | ' | ' | 204,000 | ' | ' | 53,000 | ' | ' | ' | ' | 195,000 | 142,000 | 53,000 | ' | ' |
Repayments Of Accrued Interest On Senior Secured Note | ' | $61,000 | $46,800 | ' | ' | ' | ' | ' | ' | $61,000 | ' | ' | ' | ' | ' |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||
Nov. 12, 2013 | 31-May-13 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 21, 2014 | Mar. 14, 2014 | Jan. 07, 2014 | 22-May-13 | 17-May-13 | Mar. 04, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 21, 2014 | Nov. 12, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Common Stock [Member] | Common Stock [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | Lambda Investors LLC [Member] | ||||||||||||
Stockholder Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized value of rights offering | ' | ' | ' | ' | ' | ' | $2,800,000 | ' | ' | $3,000,000 | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | ' | ' | ' | ' | ' | 0.28673 | ' | ' | 0.18776 | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right issued, shares | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right issued gross value received | ' | ' | ' | ' | 2,100,000 | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right issued net value received | ' | ' | ' | ' | 581,000 | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of senior secured note | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' |
Repayments of accrued interest on senior secured note | 61,000 | 46,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,000 | ' | ' | ' |
Reimbursement of legal fee | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' |
Amortization of debt discount (premium) | ' | 204,000 | ' | 53,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 195,000 | 142,000 | 53,000 |
Debt Instrument, Fee Amount | ' | 104,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | $0.30 | $0.45 | ' | $0.30 | ' | ' | $0.60 | ' | $0.45 | ' | ' | ' | ' | ' | ' |
Percentage Of Sourcing Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' |
Stock Issued During Period Shares Shareholder Rights Offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,140,823 | 5,000,000 | ' | ' | ' | ' |
Right Offering Fee Amount | ' | ' | $128,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Total Shares Offered In Rights Offering | ' | ' | 77.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 |
Commitments And Contingencies [Line Items] | ' |
Payments Due, Total | $896,000 |
Payments Due Within 1 Year | 450,000 |
Payments Due Within 1 - 3 Years | 446,000 |
Payments Due Within 4 - 5 Years | 0 |
Payments Due More Than 5 Years | 0 |
Employment Contracts [Member] | ' |
Commitments And Contingencies [Line Items] | ' |
Payments Due, Total | 788,000 |
Payments Due Within 1 Year | 350,000 |
Payments Due Within 1 - 3 Years | 438,000 |
Payments Due Within 4 - 5 Years | 0 |
Payments Due More Than 5 Years | 0 |
Leases [Member] | ' |
Commitments And Contingencies [Line Items] | ' |
Payments Due, Total | 108,000 |
Payments Due Within 1 Year | 100,000 |
Payments Due Within 1 - 3 Years | 8,000 |
Payments Due Within 4 - 5 Years | 0 |
Payments Due More Than 5 Years | $0 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 25, 2013 | Apr. 20, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2013 | Mar. 31, 2014 | Feb. 19, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | 23-May-13 | 23-May-13 | Feb. 04, 2013 | Feb. 04, 2013 | Apr. 23, 2012 | Apr. 23, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [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] | 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 (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | ||||||||||||||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units under first tier royalty receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000 | 125,000 | 125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
First tier royalty per unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | 1.75 | 1.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Second tier royalty per unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.71 | 1.25 | 1.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License agreement product purchases in year one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 | € 300,000 | ' | € 300,000 |
License agreement product purchases in year two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 500,000 | ' | 500,000 |
License agreement product purchases in year three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 750,000 | ' | 750,000 |
License agreement first installment payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 500,000 | ' | ' | ' | ' |
License agreement second installment payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 600,000 | ' | ' | ' | ' | ' | ' |
License agreement final installment payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Total installment payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 1,500,000 | ' | 1,500,000 |
License agreement options to purchase shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 300,000 | 300,000 | 300,000 |
Purchase commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000 | 252,000 | ' | 532,000 |
Fair value of stock options granted to Medica | ' | ' | ' | ' | 273,000 | ' | ' | 0 | 273,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 273,000 | ' |
Other assets, net of accumulated amortization | ' | ' | 1,789,000 | ' | 1,789,000 | ' | ' | 1,894,000 | 2,109,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization | ' | ' | 462,000 | ' | 462,000 | ' | ' | 356,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of Other Deferred Charges | ' | ' | 105,000 | ' | 105,000 | ' | ' | 214,000 | 142,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, years two and three | ' | ' | ' | ' | ' | ' | ' | 208,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty rate | ' | ' | ' | ' | 3.00% | 3.00% | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employment Agreement term | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Agreement, annual base salary | ' | 350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Agreement, discretionary bonus percentage | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly rent expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease extension term | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future renewed monthly rent expense | 8,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | ' | ' | ' | ' | ' | ' | ' | 108,000 | 109,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Upfront Fees And Connection Of First Amendment | ' | ' | ' | ' | 612,000 | 450,000 | ' | ' | ' | ' | 225,000 | 225,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales revenue | ' | ' | 248,000 | 391,000 | 467,000 | ' | 737,000 | 1,029,000 | 1,127,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of goods sold | ' | ' | $142,000 | $226,000 | $248,000 | ' | $421,000 | $898,000 | $737,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Assets_Details_Textual
Other Assets (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 23-May-13 | 23-May-13 | Feb. 04, 2013 | Feb. 04, 2013 | Apr. 23, 2012 | Apr. 23, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Medica Spa [Member] | Medica Spa [Member] | Medica Spa [Member] | Medica Spa [Member] | Medica Spa [Member] | Medica Spa [Member] | Medica Spa [Member] | Medica Spa [Member] | Medica Spa [Member] | Medica Spa [Member] | |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | |||||
Other Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License Agreement Product Purchases in Year One | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 | € 300,000 | ' | € 300,000 |
License Agreement Product Purchases in Year Two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 500,000 | ' | 500,000 |
License Agreement Product Purchases in Year Three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 750,000 | ' | 750,000 |
License agreement first installment payment | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 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 | 300,000 | 300,000 |
Long-term Purchase Commitment, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000 | 252,000 | ' | 532,000 |
Share Based Goods And Nonemployee Services Transaction Fair Market Value Of Options Granted | ' | 273,000 | 0 | 273,000 | ' | ' | ' | ' | ' | ' | ' | ' | 273,000 | ' |
Other Assets, Noncurrent | 1,789,000 | 1,789,000 | 1,894,000 | 2,109,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization | 462,000 | 462,000 | 356,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of Other Deferred Charges | 105,000 | 105,000 | 214,000 | 142,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty rate | ' | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 210,000 | 210,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued Royalty Payments | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Filtration Product Sales Net | ' | 148,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total installment payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | € 1,500,000 | ' | € 1,500,000 |
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Prepaid Expenses and Other Current Assets [Line Items] | ' | ' | ' |
Prepaid insurance premiums | ' | $70,000 | $78,000 |
Security deposit | ' | 21,000 | 21,000 |
Other | ' | 34,000 | 10,000 |
Prepaid expenses and other current assets | $59,000 | $125,000 | $109,000 |
Property_and_Equipment_Net_Sch
Property and Equipment, Net (Schedule Of Property and Equipment, Net) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Maximum [Member] | Minimum [Member] | Manufacturing equipment [Member] | Manufacturing equipment [Member] | Manufacturing equipment [Member] | Manufacturing equipment [Member] | Research equipment [Member] | Research equipment [Member] | Computer equipment [Member] | Computer equipment [Member] | Computer equipment [Member] | Computer equipment [Member] | Furniture and fixtures [Member] | Furniture and fixtures [Member] | ||||
Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, Life | ' | ' | ' | '7 years | '3 years | ' | ' | '5 years | '3 years | '5 years | ' | ' | ' | '4 years | '3 years | '7 years | ' |
Property and equipment, gross | ' | $734,000 | $737,000 | ' | ' | $599,000 | $602,000 | ' | ' | $37,000 | $37,000 | $59,000 | $59,000 | ' | ' | $39,000 | $39,000 |
Less: accumulated depreciation | ' | 727,000 | 721,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | $3,000 | $7,000 | $16,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Depreciation expense | ' | ' | ' | ' | $9,000 | $9,000 | ' |
Proceeds from sales of property and equipment | ' | ' | ' | ' | ' | 55,000 | 42,500 |
Proceeds from the sale of manufacturing equipment, amount recognized in other income | ' | ' | ' | ' | ' | 55,000 | 42,500 |
Gain on sale of equipment | $0 | $0 | $0 | $2,000 | $3,000 | $55,000 | ' |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accrued Expenses [Line Items] | ' | ' | ' |
Accrued Legal | ' | $149,000 | $90,000 |
Accrued Product Recall | ' | 60,000 | ' |
Accrued Directorsb Compensation | ' | 0 | 77,000 |
Accrued Management Bonus | ' | 81,000 | 0 |
Accrued Interest | ' | 39,000 | 0 |
Accrued Travel | ' | 0 | 84,000 |
Accrued Other | ' | 36,000 | 70,000 |
Accrued Expenses | $233,000 | $365,000 | $321,000 |
Income_Taxes_Details
Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Holiday [Line Items] | ' | ' |
U.S. federal statutory rate | 35.00% | 35.00% |
State & local taxes | 5.22% | 5.36% |
Tax on foreign operations | 0.40% | -0.78% |
State research and development credits | 1.09% | 1.06% |
Other | -3.00% | -2.29% |
Valuation allowance | -38.71% | -38.35% |
Effective tax rate | 0.00% | 0.00% |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carry forwards | $27,029,000 | $25,721,000 |
Research and development credits | 1,096,000 | 1,054,000 |
Nonqualified stock option compensation expense | 1,801,000 | 1,701,000 |
Other temporary book - tax differences | 408,000 | 441,000 |
Total deferred tax assets | 30,334,000 | 28,917,000 |
Valuation allowance for deferred tax assets | -30,334,000 | -28,917,000 |
Net deferred tax assets | $0 | $0 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Federal [Member] | Federal [Member] | Federal And New Jersey [Member] | Foreign [Member] | Research [Member] | Research [Member] | |
Maximum [Member] | Minimum [Member] | Federal [Member] | Federal [Member] | |||
Income Tax [Line Items] | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards | ' | ' | $87,292,000 | $8,305,000 | ' | ' |
Tax credit carryforwards | ' | ' | ' | ' | $1,096,000 | $1,054,000 |
Operating loss carryforwards expiration date | 31-Dec-26 | 31-Dec-14 | ' | ' | ' | ' |
401k_Plan_Details_Textual
401(k) Plan (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2004 | Jan. 01, 2004 | |
3% Employee Contribution [Member] | 2% Employee Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Maximum employee contribution, percentage | 15.00% | ' | ' | ' |
Contribution expense | $46,000 | $49,000 | ' | ' |
Employer matching contribution, percentage | ' | ' | 100.00% | 50.00% |
Percent of employee contributions matched by employer | ' | ' | 3.00% | 2.00% |
Subsequent_Event_Details_Textu
Subsequent Event (Details Textual) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
Mar. 21, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 21, 2014 | Mar. 24, 2014 | Mar. 31, 2014 | Feb. 19, 2014 | |
USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
USD ($) | USD ($) | EUR (€) | EUR (€) | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock | $2,100,000 | $2,013,000 | ' | $2,771,000 | $2,771,000 | $0 | $2,100,000 | $2,100,000 | ' | ' |
Proceeds from Other Debt | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,500,000 | ' | ' |
Accrued Interest Issued To Investors | ' | ' | ' | ' | ' | ' | 61,000 | 61,000 | ' | ' |
Shares, Issued | ' | ' | ' | ' | ' | ' | ' | ' | 7,140,822 | ' |
Upfront Fees And Connection Of First Amendment | ' | $612,000 | € 450,000 | ' | ' | ' | ' | ' | € 225,000 | € 225,000 |