Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document Information [Line Items] | |
Entity Registrant Name | NEPHROS INC |
Entity Central Index Key | 1,196,298 |
Entity Filer Category | Smaller Reporting Company |
Document Type | S1 |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | |||
Cash | $ 367 | $ 1,284 | $ 579 |
Accounts receivable, net | 334 | 110 | 122 |
Inventory, net | 208 | 186 | 162 |
Prepaid expenses and other current assets | 82 | 104 | 125 |
Total current assets | 991 | 1,684 | 988 |
Property and equipment, net | 0 | 1 | 7 |
Other assets, net of accumulated amortization | 1,631 | 1,684 | 1,894 |
Total assets | 2,622 | 3,369 | 2,889 |
Current liabilities: | |||
Senior secured note payable, net of debt discount of $142 at December 31, 2013 | 0 | 1,358 | |
Accounts payable | 754 | 835 | 1,073 |
Accrued expenses | 432 | 342 | 365 |
Deferred revenue, current portion | 70 | 70 | 703 |
Total current liabilities | 1,256 | 1,247 | 3,499 |
Warrant liability | 6,377 | 7,386 | 3,109 |
Long-term portion of deferred revenue | 400 | 417 | 0 |
Total liabilities | $ 8,033 | $ 9,050 | 6,608 |
Commitments and Contingencies | |||
Stockholders’ deficit: | |||
Preferred stock, $.001 par value; 5,000,000 shares authorized at March 31, 2015 and December 31, 2014; no shares issued and outstanding at March 31, 2015 and December 31, 2014 | $ 0 | $ 0 | 0 |
Common stock, $.001 par value; 90,000,000 shares authorized at March 31, 2015 and December 31, 2014; 30,392,480 and 30,391,513 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively. | 30 | 30 | 18 |
Additional paid-in capital | 108,409 | 108,382 | 102,983 |
Accumulated other comprehensive income | 72 | 72 | 74 |
Accumulated deficit | (113,922) | (114,165) | (106,794) |
Total stockholders’ deficit | (5,411) | (5,681) | (3,719) |
Total liabilities and stockholders’ deficit | $ 2,622 | $ 3,369 | $ 2,889 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Senior Secured Note, Debt Discount Amount | $ 142 | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
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 (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 | 90,000,000 |
Common stock, shares issued | 30,392,480 | 30,391,513 | 18,082,043 |
Common stock, shares outstanding | 30,392,480 | 30,391,513 | 18,082,043 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net revenues: | ||||
Product revenues | $ 527 | $ 219 | $ 914 | $ 1,029 |
License revenues | 17 | 254 | 834 | 711 |
Total net revenues | 544 | 473 | 1,748 | 1,740 |
Cost of goods sold | 262 | 106 | 549 | 898 |
Gross margin | 282 | 367 | 1,199 | 842 |
Operating expenses: | ||||
Research and development | 192 | 163 | 781 | 867 |
Depreciation and amortization | 53 | 55 | 217 | 223 |
Selling, general and administrative | 843 | 711 | 2,870 | 3,069 |
Total operating expenses | 1,088 | 929 | 3,868 | 4,159 |
Loss from operations | (806) | (562) | (2,669) | (3,317) |
Change in fair value of warrant liability | 1,009 | (2,751) | (4,277) | 5,020 |
Interest expense | (11) | (195) | (483) | (351) |
Gain on sale of equipment | 0 | 3 | ||
Other income (expense) | 51 | (3) | 58 | (33) |
Net income (loss) | 243 | (3,511) | (7,371) | 1,322 |
Other comprehensive loss, foreign currency translation adjustments | 0 | (1) | (2) | (2) |
Total comprehensive income (loss) | $ 243 | $ (3,512) | $ (7,373) | $ 1,320 |
Net income (loss) per common share, basic (in dollars per share) | $ 0.01 | $ (0.19) | $ (0.31) | $ 0.08 |
Weighted average common shares outstanding, basic (in shares) | 30,259,823 | 18,816,746 | 23,817,184 | 15,624,999 |
Net loss per common share, diluted (in dollars per share) | $ (0.02) | $ (0.19) | $ (0.31) | $ (0.18) |
Weighted average common shares outstanding, diluted (in shares) | 37,082,499 | 18,816,746 | 23,817,184 | 20,760,410 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income(Loss) [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2012 | $ (8,724) | $ 12 | $ 99,304 | $ 76 | $ (108,116) |
Balance, (in shares) at Dec. 31, 2012 | 11,949,824 | ||||
Net income (loss), as restated | 1,322 | 1,322 | |||
Net unrealized losses on foreign currency translation, net of tax | (2) | (2) | |||
Shareholder rights offering, net | 2,771 | $ 5 | 2,766 | ||
Shareholder rights offering, net (in shares) | 5,000,000 | ||||
Issuance of restricted stock | 0 | ||||
Issuance of restricted stock (in shares) | 340,220 | ||||
Exercise of warrants | 248 | $ 1 | 247 | ||
Exercise of warrants (in shares) | 791,999 | ||||
Noncash stock-based compensation | 652 | 652 | |||
Balance at Dec. 31, 2013 | (3,719) | $ 18 | 102,983 | 74 | (106,794) |
Balance (in shares) at Dec. 31, 2013 | 18,082,043 | ||||
Warrant modification | 14 | 14 | |||
Net income (loss), as restated | (7,371) | (7,371) | |||
Net unrealized losses on foreign currency translation, net of tax | (2) | (2) | |||
Shareholder rights offering, net | 4,866 | $ 12 | 4,854 | ||
Shareholder rights offering, net (in shares) | 12,140,823 | ||||
Issuance of restricted stock | 0 | ||||
Issuance of restricted stock (in shares) | 132,077 | ||||
Exercise of warrants | 15 | 15 | |||
Exercise of warrants (in shares) | 36,570 | ||||
Noncash stock-based compensation | 530 | 530 | |||
Balance at Dec. 31, 2014 | (5,681) | $ 30 | 108,382 | 72 | (114,165) |
Balance (in shares) at Dec. 31, 2014 | 30,391,513 | ||||
Net income (loss), as restated | 243 | 243 | |||
Exercise of warrants | 1 | 1 | |||
Exercise of warrants (in shares) | 967 | ||||
Noncash stock-based compensation | 26 | 26 | |||
Balance at Mar. 31, 2015 | $ (5,411) | $ 30 | $ 108,409 | $ 72 | $ (113,922) |
Balance (in shares) at Mar. 31, 2015 | 30,392,480 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | ||||
Net income (loss) | $ 243 | $ (3,511) | $ (7,371) | $ 1,322 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
Depreciation of property and equipment | 1 | 2 | 6 | 9 |
Amortization of other assets | 52 | 53 | 210 | 214 |
Noncash stock-based compensation, including stock options and restricted stock | 26 | 120 | 429 | 575 |
Change in fair value of warrant liability | (1,009) | 2,751 | 4,277 | (5,020) |
Warrant inducement | 0 | 14 | ||
Inventory reserve | (2) | 17 | 59 | 210 |
Amortization of debt discount | 0 | 142 | 320 | 257 |
Gain on disposal of property and equipment | 0 | (3) | ||
(Gain)/loss on foreign currency transactions | (40) | 1 | (48) | 26 |
(Increase) decrease in operating assets: | ||||
Accounts receivable | (224) | (355) | 12 | 820 |
Inventory | (20) | (46) | (82) | (60) |
Prepaid expenses and other current assets | 22 | 53 | 21 | (16) |
Increase (decrease) in operating liabilities: | ||||
Accounts payable | (39) | (40) | (190) | (23) |
Accrued expenses | 90 | (172) | 78 | 121 |
License and supply agreement fee payable | 0 | (1,318) | ||
Deferred revenue | (17) | 363 | (216) | (711) |
Net cash used in operating activities | (917) | (622) | (2,495) | (3,583) |
Investing activities | ||||
Proceeds from sales of property and equipment | 0 | 3 | ||
Net cash provided by investing activities | 0 | 3 | ||
Financing activities: | ||||
Proceeds from issuance of common stock, net of equity issuance costs | 0 | 2,016 | 4,866 | 2,771 |
Proceeds from issuance of senior secured notes | 1,572 | 2,800 | ||
Payment of financing costs | 0 | (399) | ||
Proceeds from exercise of warrants | 1 | 1 | 15 | 248 |
Payment of senior secured note | 0 | (1,500) | (3,250) | (1,300) |
Net cash provided by financing activities | 1 | 517 | 3,203 | 4,120 |
Effect of exchange rates on cash | (1) | (1) | (3) | (8) |
Net increase (decrease) in cash | (917) | (106) | 705 | 532 |
Cash, beginning of period | 1,284 | 579 | 579 | 47 |
Cash, end of period | 367 | 473 | 1,284 | 579 |
Supplemental disclosure of cash flow information | ||||
Cash paid for interest | $ 14 | $ 77 | 188 | 54 |
Cash paid for taxes | 6 | 2 | ||
Restricted stock issued to settle liability | $ 101 | $ 77 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Payments of Stock Issuance Costs | $ 125 | $ 276 | $ 229 |
Organization and Nature of Oper
Organization and Nature of Operations | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
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 OLpur mid-dilution HDF filter or “dialyzer,” designed expressly for HDF therapy, and the OLpur H2H HDF module, an add-on module designed to allow the most common types of hemodialysis machines to be used for HDF therapy. In 2009, the Company introduced its Dual Stage Ultrafilter (“DSU”) water filter, which represented a new and complementary product line to the Company’s ESRD therapy business. The DSU incorporates the Company’s unique and proprietary dual stage filter architecture. On June 4, 2003, Nephros International Limited was incorporated under the laws of Ireland as a wholly-owned subsidiary of the Company. In August 2003, the Company established a European Customer Service and financial operations center in Dublin, Ireland. | 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 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. The U.S. facilities, located at 41 Grand Avenue, River Edge, New Jersey, 07661, are used to house the Company’s corporate headquarters and research facilities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation and Going Concern | Interim Financial Information The accompanying unaudited condensed consolidated interim financial statements of Nephros, Inc. and its wholly owned subsidiary, Nephros International Limited (collectively, the “Company” or “Nephros”) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 15, 2015. In the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, the Company restated (i) its audited consolidated financial statements as of and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009, including the cumulative effect as of January 1, 2009, and (ii) its unaudited condensed consolidated interim financial statements as of, and for each of the quarterly periods ended, March 31, June 30, and September 30, in the years 2014 and 2013. The restatement results from the Company's prior accounting for certain outstanding common stock purchase warrants originally issued in November 2007 as components of equity instead of as derivative liabilities. Accordingly, certain amounts as of and for the quarter ended March 31, 2014 presented herein reflect these previously restated amounts. 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 interim 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, 2014 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 condensed consolidated interim 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 2015 presentation. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Included in these estimates are assumptions about the valuation of the warrant liability, the collection of accounts receivable, value of inventories, useful life of fixed assets and intangible assets, and assumptions used in determining stock compensation such as expected volatility and risk-free interest rate. 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 operating losses and difficulty in generating sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. The Company’s condensed consolidated interim financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company has incurred significant losses in operations in each quarter since inception. 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. 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. | Note 3 - Summary of Significant Accounting Policies 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. 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. Included in these estimates are assumptions about the valuation of the warrant liability, the collection of accounts receivable, value of inventories, useful life of fixed assets and intangible assets, and assumptions used in determining stock compensation such as expected volatility and risk-free interest rate. Certain prior year amounts have been reclassified to conform to the current year presentation. 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 from operations in each quarter since inception. In addition, the Company has not generated positive cash flow from operations for the years ended December 31, 2014 and 2013. 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 December 18, 2014, the Company completed a rights offering which resulted in gross proceeds of $ 3.0 1.75 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. 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. For the years ended December 31, 2014 and 2013, three 78 86 three 83 two 97 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 was an allowance for doubtful accounts of approximately $ 1,000 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 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 destroyed the respective product in April 2014. 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 and are included in Selling, General and Administrative expenses on the accompanying consolidated statement of operations and comprehensive loss. 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. 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 not 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, 2014 and December 31, 2013. The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term maturity of these instruments. See Note 4 for information on the fair value of derivative liabilities. 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 $ 487,000 703,000 2,589,000 834,000 487,000 711,000 Shipping and handling costs charged to customers are recorded as cost of goods sold and were approximately $ 4,000 5,000 Research and development costs are expensed as incurred. 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. The Company accounts for stock warrants as either equity instruments or derivative liabilities depending on the specific terms of the warrant agreement. Stock warrants that allow for cash settlement or provide for anti-dilution of the warrant exercise price under certain conditions are accounted for as derivative liabilities. The Company classifies derivative warrant liabilities on the balance sheet as a liability, which is revalued using a binomial options pricing model at each balance sheet date subsequent to the initial issuance. A binomial options pricing model requires the input of highly subjective assumptions and elections including expected stock price volatility and the estimated life of each award. The changes in fair value of the derivative warrant liabilities are remeasured at each balance sheet date and the resulting changes in fair value are recorded in current period earnings. The Company accounts for debt issuance costs in accordance with ASC 835, which allows 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 associated with the senior secured note issued to Lambda on August 29, 2014 were $ 178,000 142,000 Total debt issuance costs recorded during the year ended December 31, 2013 were approximately $ 399,000 195,000 204,000 53,000 204,000 Other income of approximately $ 58,000 Other expense, net, of approximately $ 33,000 36,000 14,000 17,000 15,000 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, 2014 and 2013. 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 2011. During the years ended December 31, 2014 and 2013, 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. Basic income (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the number of weighted average common shares issued and outstanding. Diluted earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares issued and outstanding for the period, plus amounts representing the dilutive effect from the exercise of stock options and warrants, as applicable. The Company calculates dilutive potential common shares using the treasury stock method, which assumes the Company will use the proceeds from the exercise of stock options and warrants to repurchase shares of common stock to hold in its treasury stock reserves. December 31, 2014 2013 Shares underlying options outstanding 2,472,234 2,410,134 Shares underlying warrants outstanding 16,752,915 5,081,023 Unvested restricted stock 132,077 75,450 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), 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)). The Company’s other comprehensive income (loss) consists only of foreign currency translation adjustments. In May 2014, the Financial Accounting Standards Board (“FASB”) 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. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” ASU 2014-15 provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and sets rules for how this information should be disclosed in the financial statements. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating any impact the adoption of ASU 2014-15 might have on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest Imputation of Interest (Subtopic 2015-03): Simplifying the Presentation of Debt Issuance Costs” related to the presentation requirements for debt issuance costs and debt discount and premium. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption of the amendments in ASU 2015-03 is permitted for financial statements that have not been previously issued. The Company does not believe that the adoption of ASU 2015-03 will have a significant impact on its consolidated financial statements. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2015 | |
Concentration Of Credit Risk [Abstract] | |
Concentration of Credit Risk | Note 3 Concentration of Credit Risk Customer 2015 2014 A 30 % 9 % B 28 % 25 % C 18 % - % D 3 % 54 % Customer 2015 2014 A 35 % 22 % B 17 % - % C 16 % - % D 12 % 25 % E - % 35 % |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2015 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 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 March 31, 2015 condensed consolidated balance sheet is approximately $ 470,000 2,606,000 17,000 254,000 |
Restatement of Previously Issue
Restatement of Previously Issued Financial Statements | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Previously Issued Financial Statements | Note 2 Restatement of Previously Issued Financial Statements In preparation of the Annual Report, the Company concluded it should correct its accounting related to the Company’s outstanding warrants that were originally issued in 2007 (the “2007 Warrants”). The Company had initially accounted for the warrants as a component of equity but upon further evaluation of the terms of these warrants, concluded that the 2007 Warrants should be accounted for as a derivative liability. The Company’s 2007 Warrants are not indexed to the Company’s common stock because the transactions that would trigger the Anti-Dilution Adjustment Provision are not inputs to the fair value of the warrants. As a result, we should have classified the 2007 Warrants as derivative liabilities as of January 1, 2009, the date which ASC Section 815-40-15 was effective. Under this accounting treatment, we are required to measure the fair value of the 2007 Warrants at the end of each reporting period beginning in the year ended December 31, 2009, with a cumulative effect presented as of January 1, 2009, and recognize changes in the fair value for all periods beginning with January 1, 2009 in our operating results for the current period. (Amounts in 000s, except share and per share data) As Previously As Reported Adjustments Restated Balance sheet as of September 30, 2014 (unaudited) Warrant Liability $ - $ 7,116 $ 7,116 Additional Paid-in Capital 102,864 2,458 105,322 Accumulated Deficit (103,348) (9,573) (112,921) Three months ended September 30, 2014 (unaudited) Change in fair value of warrant liability - 3,428 3,428 Net income (loss) (706) 3,428 2,723 Net income (loss) per share, basic (0.03) 0.14 0.11 Net income (loss) per share, diluted (0.03) 0.01 (0.02) Weighted average common shares outstanding, diluted 25,238,412 8,252,777 33,491,189 Comprehensive income (loss) (705) 3,429 2,724 (Amounts in 000s, except share and per share data) As Previously As Reported Adjustments Restated Nine months ended September 30, 2014 (unaudited) Change in fair value of warrant liability - (4,007) (4,007) Net loss (2,120) (4,007) (6,127) Net income (loss) per share, basic and diluted (0.09) (0.18) (0.27) Comprehensive loss (2,121) (4,007) (6,128) Balance sheet as of June 30, 2014 (unaudited) Warrant Liability - 10,544 10,544 Additional Paid-in Capital 102,761 2,458 105,219 Accumulated Deficit (102,642) (13,002) (115,644) Three months ended June 30, 2014 (unaudited) Change in fair value of warrant liability - (4,685) (4,685) Net loss (654) (4,685) (5,339) Net loss per share, basic and diluted (0.03) (0.18) (0.21) Comprehensive loss (655) (4,685) (5,340) Six months ended June 30, 2014 (unaudited) Change in fair value of warrant liability - (7,436) (7,436) Net loss (1,414) (7,436) (8,850) Net loss per share, basic and diluted (0.06) (0.34) (0.40) Comprehensive loss (1,416) (7,436) (8,852) Balance sheet as of March 31, 2014 (unaudited) Warrant Liability - 5,859 5,859 Additional Paid-in Capital 102,656 2,458 105,114 Accumulated Deficit (101,988) (8,317) (110,305) Three months ended March 31, 2014 (unaudited) Change in fair value of warrant liability - (2,751) (2,751) Net loss (760) (2,751) (3,511) Net loss per share, basic and diluted (0.04) (0.15) (0.19) Comprehensive loss (761) (2,751) (3,512) Balance sheet as of December 31, 2013 (audited) Warrant Liability - 3,109 3,109 Additional Paid-in Capital 100,526 2,457 102,983 Accumulated Deficit (101,228) (5,566) (106,794) (Amounts in 000s, except share and per share data) As Previously As Reported Adjustments Restated Year ended December 31, 2013 (audited) Change in fair value of warrant liability - 5,020 5,020 Net income (loss) (3,698) 5,020 1,322 Net income (loss) per share, basic (0.24) 0.32 0.08 Net income (loss) per share, diluted (0.24) 0.06 (0.18) Weighted average common shares outstanding, diluted 15,624,999 5,135,411 20,760,410 Comprehensive income (loss) (3,700) 5,020 1,320 Balance sheet as of September 30, 2013 (unaudited) Warrant Liability - 7,776 7,776 Additional Paid-in Capital 100,391 2,457 102,848 Accumulated Deficit (100,053) (10,234) (110,287) Three months ended September 30, 2013 (unaudited) Change in fair value of warrant liability - (1,797) (1,797) Net loss (611) (1,797) (2,408) Net loss per share, basic and diluted (0.03) (0.11) (0.14) Comprehensive loss (611) (1,797) (2,408) Nine months ended September 30, 2013 (unaudited) Change in fair value of warrant liability - 352 352 Net income (loss) (2,523) 352 (2,171) Net income (loss) per share, basic and diluted (0.17) 0.02 (0.15) Comprehensive loss (2,525) 352 (2,173) Balance sheet as of June 30, 2013 (unaudited) Warrant Liability - 5,980 5,980 Additional Paid-in Capital 100,191 2,457 102,648 Accumulated Deficit (99,442) (8,437) (107,879) Three months ended June 30, 2013 (unaudited) Change in fair value of warrant liability - (608) (608) Net loss (671) (608) (1,279) Net loss per share, basic and diluted (0.05) (0.05) (0.10) Comprehensive loss (673) (608) (1,281) Six months ended June 30, 2013 (unaudited) Change in fair value of warrant liability - 2,149 2,149 Net income (loss) (1,912) 2,149 237 Net income (loss) per share, basic (0.14) 0.16 0.02 Net income (loss) per share, diluted (0.14) 0.04 (0.10) Weighted average common shares outstanding, diluted 14,556,050 5,150,160 19,706,210 Comprehensive income (loss) (1,914) 2,149 235 Amounts in 000s, except share and per share data) As Previously As Reported Adjustments Restated Balance sheet as of March 31, 2013 (unaudited) Warrant Liability - 5,372 5,372 Additional Paid-in Capital 96,988 2,457 99,445 Accumulated Deficit (98,772) (7,830) (106,602) Three months ended March 31, 2013 (unaudited) Change in fair value of warrant liability - 2,756 2,756 Net income (loss) (1,242) 2,756 1,514 Net income (loss) per share, basic (0.10) 0.23 0.13 Net income (loss) per share, diluted (0.10) 0.03 (0.07) Weighted average common shares outstanding, diluted 12,009,285 5,624,075 17,633,360 Comprehensive income (loss) (1,242) 2,756 1,514 Balance sheet as of December 31, 2012 (audited) Warrant Liability - 8,129 8,129 Additional Paid-in Capital 96,847 2,457 99,304 Accumulated Deficit (97,530) (10,586) (108,116) Year ended December 31, 2012 (audited) Change in fair value of warrant liability - (3,361) (3,361) Net loss (3,262) (3,361) (6,623) Net loss per share, basic and diluted (0.29) (0.30) (0.59) Comprehensive loss (3,262) (3,361) (6,596) Balance sheet as of December 31, 2011 (audited) Warrant Liability - 5,096 5,096 Additional Paid-in Capital 95,630 2,129 97,759 Accumulated Deficit (94,268) (7,225) (101,493) Year ended December 31, 2011 (audited) Change in fair value of warrant liability - (4,638) (4,638) Net loss (2,360) (4,638) (6,998) Net loss per share, basic and diluted (0.27) (0.54) (0.81) Comprehensive loss (2,333) (4,638) (6,971) Balance sheet as of December 31, 2010 (audited) Warrant Liability - 458 458 Additional Paid-in Capital 91,979 2,129 94,108 Accumulated Deficit (91,908) (2,587) (94,495) (Amounts in 000s, except share and per share data) As Previously As Reported Adjustments Restated Year ended December 31, 2010 (audited) Change in fair value of warrant liability - 5,813 5,813 Net income (loss) (1,933) 5,813 3,880 Net income (loss) per share, basic and diluted (0.93) 2.79 1.86 Balance sheet as of December 31, 2009 (audited) Warrant Liability - 6,272 6,272 Additional Paid-in Capital 91,815 2,129 93,944 Accumulated Deficit (89,975) (8,400) (98,375) Year ended December 31, 2009 (audited) Change in fair value of warrant liability - (10,056) (10,056) Net loss (2,026) (10,056) (12,082) Net loss per share, basic and diluted (1.06) (5.26) (6.32) Balance sheet as of January 1, 2009 (audited) Warrant Liability - 2,107 2,107 Additional Paid-in Capital 90,375 (3,763) 86,612 Accumulated Deficit (87,949) 1,656 (86,293) Historically, the Company had generated net losses thus its basic and diluted earnings per share calculations were based upon the same weighted average shares due to the anti-dilution effect. Certain periods above were restated to reflect net income. (restated) (restated) (restated) For the three months For the year For the six months ended September 30, ended December 31, ended June 30, (amounts in 000s, except share and per share data) 2014 2013 2013 Loss per share Basic: Numerator for basic income (loss) per share $ 2,723 $ 1,322 $ 237 Denominator for basic income (loss) per share 25,238,412 15,624,999 14,556,050 Basic income (loss) per common share $ 0.11 $ 0.08 $ 0.02 Loss per share Diluted: Numerator for diluted income (loss) per share $ 2,723 $ 1,322 237 Adjust: Fair value of dilutive warrants outstanding (3,429) (5,020) (2,149) Numerator for diluted income (loss) per share $ (706) (3,698) (1,912) Denominator for basic income (loss) per share 25,238,412 15,624,999 14,556,050 Plus: Incremental shares underlying warrants outstanding 8,252,777 5,135,411 5,150,160 Denominator for diluted income (loss) per share 33,491,189 20,760,410 19,706,210 Diluted income (loss) per common share $ (0.02) $ (0.18) $ (0.10) (restated) (restated) For the three months For the year ended March 31, ended December 31, (amounts in 000s, except share and per share data) 2013 2010 Loss per share Basic: Numerator for basic income (loss) per share $ 1,514 $ 3,880 Denominator for basic income (loss) per share 12,009,285 2,087,068 Basic income (loss) per common share $ 0.13 $ 1.86 Loss per share Diluted: Numerator for diluted income (loss) per share $ 1,514 $ 3,880 Adjust: Fair value of dilutive warrants outstanding (2,756) - Numerator for diluted income (loss) per share $ (1,242) $ 3,880 Denominator for basic income (loss) per share 12,009,285 2,087,068 Plus: Incremental shares underlying warrants outstanding 5,624,075 - Denominator for diluted income (loss) per share 17,633,360 2,087,068 Diluted income (loss) per common share $ (0.07) $ 1.86 (1) (1) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | ||
Fair Value of Financial Instruments | Note 5 Fair Value of Financial Instruments The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term maturity of these instruments. The Company’s outstanding warrants that were originally issued in 2007 (the “2007 Warrants”) are accounted for as a derivative liability because the transactions that would trigger the anti-dilution adjustment provision in the 2007 Warrants are not inputs to the fair value of the warrants. The 2007 Warrants are recorded as liabilities at their estimated fair value at the date of issuance, with the subsequent changes in estimated fair value recorded in changes in fair value of warrant liability in the Company’s consolidated statement of operations and comprehensive income (loss) in each subsequent period. The Company utilizes a binomial options pricing model to value the 2007 Warrants at each reporting period. The fair value guidance requires fair value measurements be classified and disclosed in one of the following three categories: ⋅ Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; ⋅ Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; ⋅ Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The estimated fair value of the 2007 Warrants is determined using Level 3 inputs. Inherent in a binomial options pricing model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its common stock based on historical volatility that matches the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates to remain at zero. Fair value measurement at reporting date using: Quoted prices in Significant other Significant Total At March 31, 2015: Warrant liability $ - $ - $ 6,377 $ 6,377 Fair value measurement at reporting date using: Quoted prices in Significant other Significant Total At December 31, 2014: Warrant liability $ - $ - $ 7,386 $ 7,386 On the condensed consolidated statement of operations for the three month periods ended March 31, 2015 and 2014, the Company recorded income of $ 1,009,000 2,751,000 March 31, December 31, 2015 2014 Calculated aggregate value $ 6,377 $ 7,386 Weighted average exercise price $ 0.30 $ 0.30 Closing price per share of common stock $ 0.60 $ 0.79 Volatility 138 % 165.6 % Weighted average remaining expected life (years) 4.7 5.0 Risk-free interest rate 1.4 % 1.8 % Dividend yield - - | Note 4 Financial Instruments The Company’s 2007 Warrants are recorded as liabilities at their estimated fair value at the date of issuance, with the subsequent changes in estimated fair value recorded in changes in fair value of warrant liability in the Company’s consolidated statement of operations and comprehensive income (loss) in each subsequent period. The Company utilizes a binomial options pricing model to value the 2007 Warrants. The fair value guidance requires fair value measurements be classified and disclosed in one of the following three categories: ⋅ Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; ⋅ Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; ⋅ Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The estimated fair value of the 2007 Warrants is determined using Level 3 inputs. Inherent in a binomial options pricing model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its common stock based on historical volatility that matches the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates to remain at zero. Fair value measurement at reporting date using: Quoted prices in Significant other Significant Total At December 31, 2014: Warrant liability $ - $ - $ 7,386 $ 7,386 Fair value measurement at reporting date using: Quoted prices in Significant other Significant Total At December 31, 2013: Warrant liability $ - $ - $ 3,109 $ 3,109 2007 Warrants Balance at January 1, 2013 $ 8,129 Decrease in fair value of warrant liability (5,020) Balance at December 31, 2013 $ 3,109 Increase in fair value of warrant liability 4,277 Balance at December 31, 2014 $ 7,386 2014 2013 Calculated aggregate value $ 7,386 $ 3,109 Weighted average exercise price $ 0.30 $ 0.40 Closing price per share of common stock $ 0.79 $ 0.42 Volatility 165.6 % 103.5 % Weighted average remaining expected life (years) 5.2 5.0 Risk-free interest rate 1.8 % 1.6 % Dividend yield - - |
Stock Plans, Share-Based Paymen
Stock Plans, Share-Based Payments and Warrants | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-Based Compensation | Note 6 Stock-Based Compensation Stock Options The Company accounts for stock option grants to employees and non-employee directors under the provisions of ASC 718, Stock Compensation. ASC 718 requires the recognition of the fair value of stock-based compensation in the statement of operations. In addition, the Company accounts for stock option grants to consultants under the provisions of ASC 505-50, Equity-Based Payments to Non-Employees, and as such, these stock options are revalued at each reporting period through the vesting period. The fair value of stock option awards is estimated using a Black-Scholes option pricing model. The fair value of stock-based awards is amortized over the vesting period of the award using the straight-line method. The Company calculates expected volatility for a stock-based grant based on historic monthly common stock price observations during the period immediately preceding the grant that is equal in length to the expected term of the grant. The Company also estimates future forfeitures, using historical employee behaviors related to forfeitures, as a part of the estimate of expense as of the grant date. With respect to grants of options, the risk free rate of interest is based on the U.S. Treasury rates appropriate for the expected term of the grant. Stock-based compensation expense was approximately $ 20,000 118,000 16,000 4,000 110,000 8,000 There was no tax benefit related to expense recognized in the three months ended March 31, 2015 and 2014, as the Company is in a net operating loss position. As of March 31, 2015, there was approximately $ 111,000 3.1 65 27 8 Restricted Stock Total stock-based compensation expense for the restricted stock grants was approximately $ 6,000 2,000 | Note 11 - Stock Plans, Share-Based Payments and Warrants Stock Plans 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 As of December 31, 2014 there were no outstanding options under the 2000 Plan. On March 15, 2014, the 2,834 The Board retired the 2000 Plan in June 2004, and thereafter no additional awards may be granted under the 2000 Plan. 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 As of December 31, 2014, 1,236,975 2,054,799 903,709 As of December 31, 2013, 1,028,509 2,407,318 715,692 In addition, 331,550 Share-Based Payment Expense is recognized, net of expected forfeitures, over the vesting period of the options. Stock based compensation expense recognized for the years ended December 31, 2014 and 2013 was approximately $ 421,000 418,000 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. The change in the terms under this modification did not result in any additional compensation expense. All of Mr. Kochanski’s vested stock options expired on March 14, 2014. Shares Weighted Outstanding at December 31, 2012 2,294,714 $ 2.14 Options granted 237,315 0.64 Options forfeited or expired (121,895) 3.27 Outstanding at December 31, 2013 2,410,134 1.28 Options granted 352,519 0.50 Options forfeited or expired (290,419) 2.45 Outstanding at December 31, 2014 2,472,234 $ 0.96 Shares Weighted Exercisable at December 31, 2013 1,385,199 $ 1.46 Vested and expected to vest at December 31, 2013 2,350,688 $ 1.29 Exercisable at December 31, 2014 1,679,392 $ 1.11 Vested and expected to vest at December 31, 2014 2,426,249 $ 1.04 Options Outstanding Options Exercisable Range of Exercise Number Weighted Weighted Number Weighted $0.33 - $2.60 2,460,284 8.57 $ 0.91 1,667,441 $ 0.92 $15.40 - $29.80 10,450 4.51 $ 21.89 10,450 $ 21.89 $51.40-$96.00 1,500 1.58 $ 64.47 1,500 $ 64.47 Total Outstanding 2,472,234 $ 0.96 1,679,392 $ 1.11 Option Pricing Assumptions Grant Year 2014 2013 Stock Price Volatility 129.8 % 129.8 % Risk-Free Interest Rates 1.86 % 1.36 % Expected Life (in years) 5.84 5.91 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, 2014 was approximately $ 507,000 519,000 The weighted-average fair value of options granted in 2014 and 2013 is $ 0.45 0.56 241,000 235,000 7.5 The aggregate intrinsic value of stock options outstanding at December 31, 2013 is $ 0 0 8.1 As of December 31, 2014, the total remaining unrecognized compensation cost related to non-vested stock options amounted to $ 504,000 1.9 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. Shares Weighted 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 Granted 132,077 0.86 Vested (75,450) 0.66 Nonvested at December 31, 2014 132,077 $ 0.86 Total stock-based compensation expense for the restricted stock was approximately $ 109,000 8,000 Warrants The Company accounts for stock warrants as either equity instruments or derivative liabilities depending on the specific terms of the warrant agreement. Stock warrants are accounted for as derivative liabilities if the stock warrants allow for cash settlement or provide for modification of the warrant exercise price in the event that subsequent sales of common stock are at a lower price per share than the then-current warrant exercise price. The Company classifies derivative warrant liabilities on the balance sheet as a long-term liability, which is measured to fair value at each balance sheet date subsequent to the initial issuance of the stock warrant. Total Outstanding Warrants Title of Warrant Date Issued Expiry Date Exercise Price Total Common 2014 2013 Liability-classified warrants 2007 Warrants - Lambda 11/14/2007 3/21/2019 $ 0.30 11,742,100 8,806,575 11,742,100 8,806,575 Equity-classified warrants July 2009 Warrants 7/24/2009 7/24/2014 $ 22.40 - 33,629 Shareholder Rights Offering Warrants 3/10/2011 3/10/2016 $ 0.40 2,228,238 2,264,817 March 2011 Lambda Warrants 3/10/2011 3/21/2019 $ 0.40 2,782,577 2,782,577 5,010,815 5,081,023 Total 16,752,915 13,887,598 The weighted average exercise price of the outstanding warrants was $ 0.33 0.45 Following the issuance of the August 2014 senior secured note, Lambda’s existing warrants to purchase 11,742,100 March 21, 2019 As a result of the March 2014 rights offering, the full ratchet anti-dilution protection for Class D warrants held by Lambda was triggered. The respective warrants are now exercisable for 11,742,100 0.30 8,806,575 0.40 Warrants exercised during 2014 and 2013 During the twelve months ended December 31, 2014, 791,278 15 36,570 In connection with the May 2013 rights offering, the Company temporarily reduced the exercise price for its warrants issued in March 2011 from $ 0.40 0.30 During the period that the May 2013 rights offering was open, warrant holders exercised 14,879,708 687,793 206,000 14,000 Additionally, during the twelve months ended December 31, 2013, 2,254,500 42 104,206 In addition, 9 and 374 |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2015 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Note 7 Warrants For the three months ended March 31, 2015, 20,927 1,000 967 |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 3 Months Ended |
Mar. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Common Share | Note 8 Net Income (Loss) per Common Share Basic income (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the number of weighted average common shares issued and outstanding. Diluted earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders, adjusted for the change in the fair value of the warrant liability by the weighted average number of common shares issued and outstanding for the period, plus amounts representing the dilutive effect from the exercise of stock options and warrants, as applicable. For the three months March 31, March 31, 2015 2014 Loss per share Basic: Numerator for basic income (loss) per share $ 243,000 $ (3,511,000) Denominator for basic income (loss) per share 30,259,823 18,816,746 Basic income (loss) per common share $ 0.01 $ (0.19) Loss per share Diluted: Numerator for diluted income (loss) per share $ 243,000 $ (3,511,000) Adjust: Change in fair value of dilutive warrants outstanding (1,009,000) 2,751,000 Numerator for diluted income (loss) per share $ (766,000) $ (760,000) Denominator for basic income (loss) per share 30,259,823 18,816,746 Plus: Incremental shares underlying warrants outstanding 6,822,676 - Denominator for diluted income (loss) per share 37,082,499 18,816,746 Diluted income (loss) per common share $ (0.02) $ (0.19) March 31, 2015 2014 Shares underlying warrants outstanding 5,009,848 16,820,281 Shares underlying options outstanding 2,094,562 2,375,748 Unvested restricted stock 132,077 59,199 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 9 Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) 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. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” ASU 2014-15 provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and sets rules for how this information should be disclosed in the financial statements. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating any impact the adoption of ASU 2014-15 might have on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest Imputation of Interest (Subtopic 2015-03): Simplifying the Presentation of Debt Issuance Costs” related to the presentation requirements for debt issuance costs and debt discount and premium. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption of the amendments in ASU 2015-03 is permitted for financial statements that have not been previously issued. The Company does not believe that the adoption of ASU 2015-03 will have a significant impact on its consolidated financial statements. |
Inventory
Inventory | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | ||
Inventory, net | Note 10 Inventory, net Inventory is stated at the lower of cost or market using the first-in first-out method and consists entirely of finished goods. March 31, 2015 December 31, 2014 (Unaudited) (Audited) Total Gross Inventory, Finished Goods $ 308,000 $ 297,000 Less: Inventory reserve (100,000) (111,000) Total Inventory $ 208,000 $ 186,000 | Note 5 - Inventory December 31, 2014 2013 Total gross inventory, finished goods $ 297,000 $ 527,000 Less: inventory reserve (111,000) (365,000) Total inventory $ 186,000 $ 162,000 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2014 | |
Other Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 6 - Prepaid Expenses and Other Current Assets December 31, 2014 2013 Prepaid insurance premiums $ 70,000 $ 70,000 Security deposit 21,000 21,000 Other 13,000 34,000 Prepaid expenses and other current assets $ 104,000 $ 125,000 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 7 - Property and Equipment, Net December 31, Life 2014 2013 Manufacturing equipment 3-5 years $ 599,000 $ 599,000 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 734,000 734,000 Less: accumulated depreciation 733,000 727,000 Property and equipment, net $ 1,000 $ 7,000 Depreciation expense for each of the years ended December 31, 2014 and 2013 was approximately $ 6,000 9,000 During 2013, the Company sold fully depreciated equipment totaling approximately $ 3,000 |
Senior Secured Notes
Senior Secured Notes | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Senior Secured Notes | Note 8 Senior Secured Notes On August 29, 2014, the Company issued a senior secured note to Lambda, in the principal amount of $ 1.75 12 February 28, 2015 8 140,000 38,000 178 178,000 On November 12, 2013, the Company issued a senior secured note to Lambda in the principal amount of $ 1.5 12 May 12, 2014 8 120,000 75,000 195 142,000 53,000 Lambda is an affiliate of Wexford Capital LP, which is the managing member of Lambda. Arthur H. Amron, a director of the Company, is a partner and general counsel of Wexford Capital LP. Paul A. Mieyal, a director of the Company and currently its acting President, CEO and CFO, is also a Vice President of Wexford Capital LP. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2014 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 9 - Accrued Expenses Accrued expenses as of December 31, 2014 and 2013 were as follows: December 31, 2014 2013 Accrued legal $ 145,000 $ 149,000 Accrued management bonus 50,000 81,000 Accrued directors’ compensation 36,000 - Accrued stock transfer agent fees 27,000 - Accrued accounting 23,000 - Accrued interest 14,000 39,000 Accrued product recall - 60,000 Accrued other 47,000 36,000 $ 342,000 $ 365,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 - Income Taxes 2014 2013 U.S. federal statutory rate 35.00 % 35.00 % Warrant liability (23.70) % (155.10) % State & local taxes 5.02 % 6.40 % Tax on foreign operations 0.20 % 2.00 % State research and development credits 0.55 % (3.10) % Other (3.10) % 6.50 % Valuation allowance (13.97) % 108.30 % Effective tax rate - - 2014 2013 Deferred tax assets: Net operating loss carry forwards $ 27,935,165 $ 27,029,000 Research and development credits 1,118,389 1,096,000 Nonqualified stock option compensation expense 1,913,673 1,801,000 Other temporary book - tax differences 436,178 408,000 Total deferred tax assets 31,403,405 30,334,000 Valuation allowance for deferred tax assets (31,403,405) (30,334,000) 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, 2014, the Company had Federal and New Jersey income tax net operating loss carryforwards of $ 92,928,000 8,070,000 1,118,389 1,096,000 It is the Company’s policy to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) Plan | Note 13 - 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 15 100 3 50 2 43,000 46,000 |
Stockholder's Deficit
Stockholder's Deficit | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders’ Deficit | Note 12 Stockholders’ Deficit December 2014 Rights Offering On October 20, 2014, the Company filed a Registration Statement on Form S-1 in connection with a $ 3 The December 2014 rights offering commenced on November 10, 2014 and expired on December 15, 2014. 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 November 5, 2014. Each right entitled the holder to purchase 0.11901 0.60 On December 18, 2014, the Company completed a rights offering which resulted in the issuance of 5,000,000 3.0 1.1 1.75 75,000 March 2014 Rights Offering On January 7, 2014, the Company filed a Registration Statement on Form S-1 in connection with a $ 2.8 0.28673 0.30 On March 21, 2014, the Company completed the March 2014 rights offering that resulted in gross proceeds of $ 2.1 581,000 1.5 61,000 The Company issued a total of 7,140,823 77 128,000 May 2013 Rights Offering On March 4, 2013, the Company filed a Registration Statement on Form S-1 in connection with a $ 3 The May 2013 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 May 2013 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 0.60 On May 22, 2013, the Company completed its May 2013 rights offering which resulted in the issuance of 5,000,000 3.0 1.4 1.3 46,800 104,000 100,000 204 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | Note 11 Commitments and Contingencies Manufacturing and Suppliers The Company has not, and does not intend in the near future, to manufacture any of its products and components. With regard to the 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. 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 1.75 1.90 1.25 1.36 450,000 612,000 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 agreed to make minimum annual aggregate purchases from Medica of € 300,000 400,000 500,000 700,000 750,000 880,000 243,000 265,000 1,000,000 1,085,000 1,500,000 2,000,000 500,000 700,000 600,000 800,000 400,000 500,000 As further consideration for the license and other rights granted to the Company, the Company granted Medica options to purchase 300,000 273,000 described in Note 6 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 $ 1,631,000 619,000 52,000 158,000 210,000 3 The Company has an understanding with Medica whereby the Company has agreed to pay interest to Medica at a 12 | Note 14 - Commitments and Contingencies Manufacturing and Suppliers The Company has not and does not intend in the near future, to manufacture any of its products and components. With regard to the 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 1.75 2.40 1.25 1.71 450,000 612,000 L icense 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 agreed to make minimum annual aggregate purchases from Medica of €300,000 (approximately $400,000), €500,000 (approximately $700,000) and €750,000 (approximately $880,000) for the years 2012, 2013 and 2014, respectively. In the year ended December 31, 2014, the Company’s aggregate purchase commitments totaled approximately € 766,000 900,000 1,500,000 2,000,000 As further consideration for the license and other rights granted to the Company, the Company granted Medica options to purchase 300,000 273,000 1,684,000 566,000 210,000 214,000 210,000 3 The Company has an understanding with Medica whereby the Company has agreed to pay interest to Medica at a 12 Contractual Obligations The Company had an operating lease that expired on November 30, 2014 8,000 November 30, 2015 8,800 The lease agreement for the facilities in Europe was entered into on July 1, 2010. The lease term is renewable for 6 500 600 Rent expense for the years ended December 31, 2014 and 2013 totaled $ 117,000 116,000 Contractual Obligations and Commercial Commitments Payments Due in Period Total Within Years Years More than Leases $ 106,000 $ 104,000 $ 2,000 $ - $ - Employment Contracts (1) 175,000 175,000 - - - Total $ 281,000 $ 279,000 $ 2,000 $ - $ - (1) 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 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 did not affect the Company’s dialysis products. The consolidated financial statements for the year ended December 31, 2013 included product revenues and cost of goods sold adjustments of approximately $ 216,000 110,000 |
Subsequent Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Subsequent Events [Abstract] | ||
Subsequent Events | Note 12 Subsequent Events The Board appointed Daron Evans as the Company’s President and Chief Executive Officer, as well as its Acting Chief Financial Officer, effective April 15, 2015. Upon his appointment as President and Chief Executive Officer, Mr. Evans resigned as Chairman of the Board. Lawrence J. Centella, a member of the Board since 2001, was appointed Chairman of the Board. Mr. Evans succeeds Paul A. Mieyal, who had been serving as the Company’s Acting President, Chief Executive Officer and Chief Financial Officer since January 2015. Dr. Mieyal resigned from such offices as of the Effective Date, but continues to serve as a member of the Board. The terms of Mr. Evans’ employment with the Company are set forth in an Employment Agreement dated as of April 15, 2015 (the “Employment Agreement”). The Employment Agreement provides for a four-year term expiring on April 14, 2019 (the “Term”), unless sooner terminated by either party. Pursuant to the Employment Agreement, Mr. Evans will receive an initial annualized base salary of $ 240,000 10 2,184,193 0.60 On May 4, 2015, the Company entered into a Second Amendment to License and Supply Agreement (the “Second Amendment”) with Medica S.p.A. (“Medica”). Pursuant to the Second Amendment, the Company and Medica agreed that the total minimum amount of purchases by the Company from Medica for calendar year 2015 will be € 1,000,000 1,085,000 On May 6, 2015, the Company entered into a Sublicense Agreement with CamelBak Products, LLC (“CamelBak”). Under this Sublicense Agreement, the Company granted to CamelBak an exclusive, non-transferable, worldwide (with the exception of Italy) sublicense and license, in each case solely to market, sell, distribute, import and export the Company’s HydraGuard individual water treatment devices. The sublicensed intellectual property is licensed to the Company by Medica pursuant to the License and Supply Agreement, as amended, between the Company and Medica, which granted the Company an exclusive license, with right of sublicense, to market, promote, distribute, offer for sale and sell certain filtration products based upon Medica’s proprietary Medisulfone ultrafiltration technology in combination with the Company’s filtration products, which includes the HydraGuard individual water treatment devices. In exchange for the rights granted to CamelBak, CamelBak agreed to pay the Company a percentage of the gross profit on any sales made to a branch of the U.S. military, subject to certain exceptions, and to pay the Company a fixed per-unit fee for any other sales made. CamelBak is also required to meet or exceed certain minimum annual fees payable to the Company, and if such fees are not met or exceeded, the Company may convert the exclusive sublicense to a non-exclusive sublicense with respect to non-U.S. military sales. Additionally, the Company has the right to terminate the sublicense with respect to a specific geographic area if CamelBak enters into an agreement or otherwise obtains or develops the rights to market or sell a product that competes with the HydraGuard individual water treatment devices in such geographic area. If the Company does not terminate the sublicense in such situation, and the sales of the competing product in such geographic area exceed the sales of the HydraGuard individual water treatment devices in the same area during any full calendar year, the Company may convert the exclusive sublicense to a non-exclusive sublicense solely with respect to such geographic area. The Sublicense Agreement will expire on December 31, 2022, unless earlier terminated in accordance with the terms of the Sublicense Agreement. On May 7, 2015, the Board appointed Malcolm Persen as a director of the Company. Mr. Persen was also appointed to serve as the Chair of the Audit Committee of the Board. The Company will provide Mr. Persen with the standard compensation and indemnification approved for non-employee directors. On May 12, 2015, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers identified therein. Pursuant to the Purchase Agreement, the Company agreed to issue and sell, and the purchasers agreed to purchase, an aggregate of approximately 1.8 0.67 1.2 0.9 0.85 5 | Note 15 - Subsequent Events On January 4, 2015, the Board of Directors appointed Daron Evans, a member of the Board, to serve as Chairman of the Board. Also on January 4, 2015, the Board of Directors appointed Paul A. Mieyal, a member of the Board, to serve as the Acting President, Acting Chief Executive Officer, Acting Chief Financial Officer and Acting Secretary of the Company. Dr. Mieyal succeeded John C. Houghton, whose separation of employment as President, Chief Executive Officer and Acting Chief Financial Officer of the Company was effective on January 4, 2015. In addition, Mr. Houghton resigned as a member of the Board, effective on January 4, 2015. The resignation as a member of the Board was not due to any disagreement by or with Mr. Houghton on any matter relating to the Company’s operations, policies or practices. In connection with his separation from employment with the Company, Mr. Houghton entered into a Separation Agreement and General Release (the “Agreement”). Pursuant to the Agreement, Mr. Houghton is entitled to six months severance and is permitted to exercise his vested unexpired stock options for ninety days following January 4, 2015. During the severance term, Mr. Houghton will be subject to customary non-competition, non-solicitation and confidentiality restrictions. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Interim Financial Information | Interim Financial Information The accompanying unaudited condensed consolidated interim financial statements of Nephros, Inc. and its wholly owned subsidiary, Nephros International Limited (collectively, the “Company” or “Nephros”) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 15, 2015. In the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, the Company restated (i) its audited consolidated financial statements as of and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009, including the cumulative effect as of January 1, 2009, and (ii) its unaudited condensed consolidated interim financial statements as of, and for each of the quarterly periods ended, March 31, June 30, and September 30, in the years 2014 and 2013. The restatement results from the Company's prior accounting for certain outstanding common stock purchase warrants originally issued in November 2007 as components of equity instead of as derivative liabilities. Accordingly, certain amounts as of and for the quarter ended March 31, 2014 presented herein reflect these previously restated amounts. 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 interim 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, 2014 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 condensed consolidated interim 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 2015 presentation. All 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. | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Included in these estimates are assumptions about the valuation of the warrant liability, the collection of accounts receivable, value of inventories, useful life of fixed assets and intangible assets, and assumptions used in determining stock compensation such as expected volatility and risk-free interest rate. | Use of Estimates in the Preparation of Financial Statements 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. Included in these estimates are assumptions about the valuation of the warrant liability, the collection of accounts receivable, value of inventories, useful life of fixed assets and intangible assets, and assumptions used in determining stock compensation such as expected volatility and risk-free interest rate. Certain prior year amounts have been reclassified to conform to the current year presentation. |
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 operating losses and difficulty in generating sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. The Company’s condensed consolidated interim financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company has incurred significant losses in operations in each quarter since inception. 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. 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. | Going Concern and Management’s Response 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 from operations in each quarter since inception. In addition, the Company has not generated positive cash flow from operations for the years ended December 31, 2014 and 2013. 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 December 18, 2014, the Company completed a rights offering which resulted in gross proceeds of $ 3.0 1.75 There can be no assurance that the Company’s future cash flow will be sufficient to meet its obligations and commitments. If the Company is unable to generate sufficient cash flow from operations in the future to service its commitments, the Company will be required to adopt alternatives, such as seeking to raise debt or equity capital, curtailing its planned activities or ceasing its operations. There can be no assurance that any such actions could be effected on a timely basis or on satisfactory terms or at all, or that these actions would enable the Company to continue to satisfy its capital requirements. |
Concentration of Credit Risk | Concentration of Credit Risk 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. | |
Major Customers | Major Customers For the years ended December 31, 2014 and 2013, three 78 86 three 83 two 97 | |
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 was an allowance for doubtful accounts of approximately $ 1,000 | |
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 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 destroyed the respective product in April 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 and are included in Selling, General and Administrative expenses on the accompanying consolidated statement of operations and comprehensive loss. | |
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 not 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, 2014 and December 31, 2013. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term maturity of these instruments. See Note 4 for information on the fair value of derivative liabilities. | |
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 $ 487,000 703,000 2,589,000 834,000 487,000 711,000 | |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs charged to customers are recorded as cost of goods sold and were approximately $ 4,000 5,000 | |
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. | |
Warrants | Warrants The Company accounts for stock warrants as either equity instruments or derivative liabilities depending on the specific terms of the warrant agreement. Stock warrants that allow for cash settlement or provide for anti-dilution of the warrant exercise price under certain conditions are accounted for as derivative liabilities. The Company classifies derivative warrant liabilities on the balance sheet as a liability, which is revalued using a binomial options pricing model at each balance sheet date subsequent to the initial issuance. A binomial options pricing model requires the input of highly subjective assumptions and elections including expected stock price volatility and the estimated life of each award. The changes in fair value of the derivative warrant liabilities are remeasured at each balance sheet date and the resulting changes in fair value are recorded in current period earnings. | |
Amortization of Debt Issuance Costs | Amortization of Debt Issuance Costs The Company accounts for debt issuance costs in accordance with ASC 835, which allows 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 associated with the senior secured note issued to Lambda on August 29, 2014 were $ 178,000 142,000 Total debt issuance costs recorded during the year ended December 31, 2013 were approximately $ 399,000 195,000 204,000 53,000 204,000 | |
Other Income (Expense), net | Other Income (Expense), net Other income of approximately $ 58,000 Other expense, net, of approximately $ 33,000 36,000 14,000 17,000 15,000 | |
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, 2014 and 2013. 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 2011. During the years ended December 31, 2014 and 2013, 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. | |
Net Income (loss) per Common Share | Net Income (loss) per Common Share Basic income (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the number of weighted average common shares issued and outstanding. Diluted earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares issued and outstanding for the period, plus amounts representing the dilutive effect from the exercise of stock options and warrants, as applicable. The Company calculates dilutive potential common shares using the treasury stock method, which assumes the Company will use the proceeds from the exercise of stock options and warrants to repurchase shares of common stock to hold in its treasury stock reserves. December 31, 2014 2013 Shares underlying options outstanding 2,472,234 2,410,134 Shares underlying warrants outstanding 16,752,915 5,081,023 Unvested restricted stock 132,077 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)). The Company’s other comprehensive income (loss) consists only of foreign currency translation adjustments. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) 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. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” ASU 2014-15 provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and sets rules for how this information should be disclosed in the financial statements. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating any impact the adoption of ASU 2014-15 might have on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest Imputation of Interest (Subtopic 2015-03): Simplifying the Presentation of Debt Issuance Costs” related to the presentation requirements for debt issuance costs and debt discount and premium. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption of the amendments in ASU 2015-03 is permitted for financial statements that have not been previously issued. The Company does not believe that the adoption of ASU 2015-03 will have a significant impact on its consolidated financial statements. |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 3 Months Ended |
Mar. 31, 2015 | |
Sales Revenue [Member] | |
Concentration Risk [Line Items] | |
Schedules Of Concentration Of Risk, By Risk Factor | For the three months ended March 31, 2015 and 2014, the following customers accounted for the following percentages of the Company’s sales, respectively. Customer 2015 2014 A 30 % 9 % B 28 % 25 % C 18 % - % D 3 % 54 % |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Schedules Of Concentration Of Risk, By Risk Factor | As of March 31, 2015 and December 31, 2014, the following customers accounted for the following percentages of the Company’s accounts receivable, respectively. Customer 2015 2014 A 35 % 22 % B 17 % - % C 16 % - % D 12 % 25 % E - % 35 % |
Restatement of Previously Iss30
Restatement of Previously Issued Financial Statements (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Prior Period Adjustment [Abstract] | ||
Schedule of Error Corrections and Prior Period Adjustments | The following table summarizes the effect of the restatement to the Company’s financial statements for (i) its audited consolidated financial statements as of and for the years ended December 31, 2013, 2012, 2011, 2010 and 2009, including the cumulative effect as of January 1, 2009, and (ii) its unaudited condensed consolidated interim financial statements as of, and for each of the quarterly periods ended, March 31, June 30, and September 30, in the years 2014 and 2013: (Amounts in 000s, except share and per share data) As Previously As Reported Adjustments Restated Balance sheet as of September 30, 2014 (unaudited) Warrant Liability $ - $ 7,116 $ 7,116 Additional Paid-in Capital 102,864 2,458 105,322 Accumulated Deficit (103,348) (9,573) (112,921) Three months ended September 30, 2014 (unaudited) Change in fair value of warrant liability - 3,428 3,428 Net income (loss) (706) 3,428 2,723 Net income (loss) per share, basic (0.03) 0.14 0.11 Net income (loss) per share, diluted (0.03) 0.01 (0.02) Weighted average common shares outstanding, diluted 25,238,412 8,252,777 33,491,189 Comprehensive income (loss) (705) 3,429 2,724 (Amounts in 000s, except share and per share data) As Previously As Reported Adjustments Restated Nine months ended September 30, 2014 (unaudited) Change in fair value of warrant liability - (4,007) (4,007) Net loss (2,120) (4,007) (6,127) Net income (loss) per share, basic and diluted (0.09) (0.18) (0.27) Comprehensive loss (2,121) (4,007) (6,128) Balance sheet as of June 30, 2014 (unaudited) Warrant Liability - 10,544 10,544 Additional Paid-in Capital 102,761 2,458 105,219 Accumulated Deficit (102,642) (13,002) (115,644) Three months ended June 30, 2014 (unaudited) Change in fair value of warrant liability - (4,685) (4,685) Net loss (654) (4,685) (5,339) Net loss per share, basic and diluted (0.03) (0.18) (0.21) Comprehensive loss (655) (4,685) (5,340) Six months ended June 30, 2014 (unaudited) Change in fair value of warrant liability - (7,436) (7,436) Net loss (1,414) (7,436) (8,850) Net loss per share, basic and diluted (0.06) (0.34) (0.40) Comprehensive loss (1,416) (7,436) (8,852) Balance sheet as of March 31, 2014 (unaudited) Warrant Liability - 5,859 5,859 Additional Paid-in Capital 102,656 2,458 105,114 Accumulated Deficit (101,988) (8,317) (110,305) Three months ended March 31, 2014 (unaudited) Change in fair value of warrant liability - (2,751) (2,751) Net loss (760) (2,751) (3,511) Net loss per share, basic and diluted (0.04) (0.15) (0.19) Comprehensive loss (761) (2,751) (3,512) Balance sheet as of December 31, 2013 (audited) Warrant Liability - 3,109 3,109 Additional Paid-in Capital 100,526 2,457 102,983 Accumulated Deficit (101,228) (5,566) (106,794) (Amounts in 000s, except share and per share data) As Previously As Reported Adjustments Restated Year ended December 31, 2013 (audited) Change in fair value of warrant liability - 5,020 5,020 Net income (loss) (3,698) 5,020 1,322 Net income (loss) per share, basic (0.24) 0.32 0.08 Net income (loss) per share, diluted (0.24) 0.06 (0.18) Weighted average common shares outstanding, diluted 15,624,999 5,135,411 20,760,410 Comprehensive income (loss) (3,700) 5,020 1,320 Balance sheet as of September 30, 2013 (unaudited) Warrant Liability - 7,776 7,776 Additional Paid-in Capital 100,391 2,457 102,848 Accumulated Deficit (100,053) (10,234) (110,287) Three months ended September 30, 2013 (unaudited) Change in fair value of warrant liability - (1,797) (1,797) Net loss (611) (1,797) (2,408) Net loss per share, basic and diluted (0.03) (0.11) (0.14) Comprehensive loss (611) (1,797) (2,408) Nine months ended September 30, 2013 (unaudited) Change in fair value of warrant liability - 352 352 Net income (loss) (2,523) 352 (2,171) Net income (loss) per share, basic and diluted (0.17) 0.02 (0.15) Comprehensive loss (2,525) 352 (2,173) Balance sheet as of June 30, 2013 (unaudited) Warrant Liability - 5,980 5,980 Additional Paid-in Capital 100,191 2,457 102,648 Accumulated Deficit (99,442) (8,437) (107,879) Three months ended June 30, 2013 (unaudited) Change in fair value of warrant liability - (608) (608) Net loss (671) (608) (1,279) Net loss per share, basic and diluted (0.05) (0.05) (0.10) Comprehensive loss (673) (608) (1,281) Six months ended June 30, 2013 (unaudited) Change in fair value of warrant liability - 2,149 2,149 Net income (loss) (1,912) 2,149 237 Net income (loss) per share, basic (0.14) 0.16 0.02 Net income (loss) per share, diluted (0.14) 0.04 (0.10) Weighted average common shares outstanding, diluted 14,556,050 5,150,160 19,706,210 Comprehensive income (loss) (1,914) 2,149 235 Amounts in 000s, except share and per share data) As Previously As Reported Adjustments Restated Balance sheet as of March 31, 2013 (unaudited) Warrant Liability - 5,372 5,372 Additional Paid-in Capital 96,988 2,457 99,445 Accumulated Deficit (98,772) (7,830) (106,602) Three months ended March 31, 2013 (unaudited) Change in fair value of warrant liability - 2,756 2,756 Net income (loss) (1,242) 2,756 1,514 Net income (loss) per share, basic (0.10) 0.23 0.13 Net income (loss) per share, diluted (0.10) 0.03 (0.07) Weighted average common shares outstanding, diluted 12,009,285 5,624,075 17,633,360 Comprehensive income (loss) (1,242) 2,756 1,514 Balance sheet as of December 31, 2012 (audited) Warrant Liability - 8,129 8,129 Additional Paid-in Capital 96,847 2,457 99,304 Accumulated Deficit (97,530) (10,586) (108,116) Year ended December 31, 2012 (audited) Change in fair value of warrant liability - (3,361) (3,361) Net loss (3,262) (3,361) (6,623) Net loss per share, basic and diluted (0.29) (0.30) (0.59) Comprehensive loss (3,262) (3,361) (6,596) Balance sheet as of December 31, 2011 (audited) Warrant Liability - 5,096 5,096 Additional Paid-in Capital 95,630 2,129 97,759 Accumulated Deficit (94,268) (7,225) (101,493) Year ended December 31, 2011 (audited) Change in fair value of warrant liability - (4,638) (4,638) Net loss (2,360) (4,638) (6,998) Net loss per share, basic and diluted (0.27) (0.54) (0.81) Comprehensive loss (2,333) (4,638) (6,971) Balance sheet as of December 31, 2010 (audited) Warrant Liability - 458 458 Additional Paid-in Capital 91,979 2,129 94,108 Accumulated Deficit (91,908) (2,587) (94,495) (Amounts in 000s, except share and per share data) As Previously As Reported Adjustments Restated Year ended December 31, 2010 (audited) Change in fair value of warrant liability - 5,813 5,813 Net income (loss) (1,933) 5,813 3,880 Net income (loss) per share, basic and diluted (0.93) 2.79 1.86 Balance sheet as of December 31, 2009 (audited) Warrant Liability - 6,272 6,272 Additional Paid-in Capital 91,815 2,129 93,944 Accumulated Deficit (89,975) (8,400) (98,375) Year ended December 31, 2009 (audited) Change in fair value of warrant liability - (10,056) (10,056) Net loss (2,026) (10,056) (12,082) Net loss per share, basic and diluted (1.06) (5.26) (6.32) Balance sheet as of January 1, 2009 (audited) Warrant Liability - 2,107 2,107 Additional Paid-in Capital 90,375 (3,763) 86,612 Accumulated Deficit (87,949) 1,656 (86,293) | |
Schedule of Earnings Per Share, Basic and Diluted | The Company calculates dilutive potential common shares using the treasury stock method, which assumes the Company will use the proceeds from the exercise of stock options and warrants to repurchase shares of common stock to hold in its treasury stock reserves. For the three months March 31, March 31, 2015 2014 Loss per share Basic: Numerator for basic income (loss) per share $ 243,000 $ (3,511,000) Denominator for basic income (loss) per share 30,259,823 18,816,746 Basic income (loss) per common share $ 0.01 $ (0.19) Loss per share Diluted: Numerator for diluted income (loss) per share $ 243,000 $ (3,511,000) Adjust: Change in fair value of dilutive warrants outstanding (1,009,000) 2,751,000 Numerator for diluted income (loss) per share $ (766,000) $ (760,000) Denominator for basic income (loss) per share 30,259,823 18,816,746 Plus: Incremental shares underlying warrants outstanding 6,822,676 - Denominator for diluted income (loss) per share 37,082,499 18,816,746 Diluted income (loss) per common share $ (0.02) $ (0.19) | As such, the diluted earnings per share calculation for those periods are calculated based upon the treasury stock method as follows: (restated) (restated) (restated) For the three months For the year For the six months ended September 30, ended December 31, ended June 30, (amounts in 000s, except share and per share data) 2014 2013 2013 Loss per share Basic: Numerator for basic income (loss) per share $ 2,723 $ 1,322 $ 237 Denominator for basic income (loss) per share 25,238,412 15,624,999 14,556,050 Basic income (loss) per common share $ 0.11 $ 0.08 $ 0.02 Loss per share Diluted: Numerator for diluted income (loss) per share $ 2,723 $ 1,322 237 Adjust: Fair value of dilutive warrants outstanding (3,429) (5,020) (2,149) Numerator for diluted income (loss) per share $ (706) (3,698) (1,912) Denominator for basic income (loss) per share 25,238,412 15,624,999 14,556,050 Plus: Incremental shares underlying warrants outstanding 8,252,777 5,135,411 5,150,160 Denominator for diluted income (loss) per share 33,491,189 20,760,410 19,706,210 Diluted income (loss) per common share $ (0.02) $ (0.18) $ (0.10) (restated) (restated) For the three months For the year ended March 31, ended December 31, (amounts in 000s, except share and per share data) 2013 2010 Loss per share Basic: Numerator for basic income (loss) per share $ 1,514 $ 3,880 Denominator for basic income (loss) per share 12,009,285 2,087,068 Basic income (loss) per common share $ 0.13 $ 1.86 Loss per share Diluted: Numerator for diluted income (loss) per share $ 1,514 $ 3,880 Adjust: Fair value of dilutive warrants outstanding (2,756) - Numerator for diluted income (loss) per share $ (1,242) $ 3,880 Denominator for basic income (loss) per share 12,009,285 2,087,068 Plus: Incremental shares underlying warrants outstanding 5,624,075 - Denominator for diluted income (loss) per share 17,633,360 2,087,068 Diluted income (loss) per common share $ (0.07) $ 1.86 (1) (1) |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: March 31, 2015 2014 Shares underlying warrants outstanding 5,009,848 16,820,281 Shares underlying options outstanding 2,094,562 2,375,748 Unvested restricted stock 132,077 59,199 | The following securities have been excluded from the dilutive per share computation as they are antidilutive: December 31, 2014 2013 Shares underlying options outstanding 2,472,234 2,410,134 Shares underlying warrants outstanding 16,752,915 5,081,023 Unvested restricted stock 132,077 75,450 |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | ||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair value measurement at reporting date using: Quoted prices in Significant other Significant Total At March 31, 2015: Warrant liability $ - $ - $ 6,377 $ 6,377 Fair value measurement at reporting date using: Quoted prices in Significant other Significant Total At December 31, 2014: Warrant liability $ - $ - $ 7,386 $ 7,386 | The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liability measured at fair value on a recurring basis as of December 31, 2014 and 2013 (in thousands). Fair value measurement at reporting date using: Quoted prices in Significant other Significant Total At December 31, 2014: Warrant liability $ - $ - $ 7,386 $ 7,386 Fair value measurement at reporting date using: Quoted prices in Significant other Significant Total At December 31, 2013: Warrant liability $ - $ - $ 3,109 $ 3,109 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The Company has issued warrants to purchase common stock that are measured at fair value on a recurring basis using unobservable inputs or available market data in a binomial options pricing model to support the fair value (Level 3). A reconciliation of the warrant liability is as follows (in thousands): 2007 Warrants Balance at January 1, 2013 $ 8,129 Decrease in fair value of warrant liability (5,020) Balance at December 31, 2013 $ 3,109 Increase in fair value of warrant liability 4,277 Balance at December 31, 2014 $ 7,386 | |
Fair Value Inputs, Liabilities, Quantitative Information | The following table summarizes the calculated aggregate fair values of the warrants, along with the assumptions utilized in each calculation: March 31, December 31, 2015 2014 Calculated aggregate value $ 6,377 $ 7,386 Weighted average exercise price $ 0.30 $ 0.30 Closing price per share of common stock $ 0.60 $ 0.79 Volatility 138 % 165.6 % Weighted average remaining expected life (years) 4.7 5.0 Risk-free interest rate 1.4 % 1.8 % Dividend yield - - | The following table summarizes the calculated aggregate fair values of the warrants, along with the assumptions utilized in each calculation: 2014 2013 Calculated aggregate value $ 7,386 $ 3,109 Weighted average exercise price $ 0.30 $ 0.40 Closing price per share of common stock $ 0.79 $ 0.42 Volatility 165.6 % 103.5 % Weighted average remaining expected life (years) 5.2 5.0 Risk-free interest rate 1.8 % 1.6 % Dividend yield - - |
Net Income (Loss) per Common 33
Net Income (Loss) per Common Share (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Schedule of Earnings Per Share, Basic and Diluted | The Company calculates dilutive potential common shares using the treasury stock method, which assumes the Company will use the proceeds from the exercise of stock options and warrants to repurchase shares of common stock to hold in its treasury stock reserves. For the three months March 31, March 31, 2015 2014 Loss per share Basic: Numerator for basic income (loss) per share $ 243,000 $ (3,511,000) Denominator for basic income (loss) per share 30,259,823 18,816,746 Basic income (loss) per common share $ 0.01 $ (0.19) Loss per share Diluted: Numerator for diluted income (loss) per share $ 243,000 $ (3,511,000) Adjust: Change in fair value of dilutive warrants outstanding (1,009,000) 2,751,000 Numerator for diluted income (loss) per share $ (766,000) $ (760,000) Denominator for basic income (loss) per share 30,259,823 18,816,746 Plus: Incremental shares underlying warrants outstanding 6,822,676 - Denominator for diluted income (loss) per share 37,082,499 18,816,746 Diluted income (loss) per common share $ (0.02) $ (0.19) | As such, the diluted earnings per share calculation for those periods are calculated based upon the treasury stock method as follows: (restated) (restated) (restated) For the three months For the year For the six months ended September 30, ended December 31, ended June 30, (amounts in 000s, except share and per share data) 2014 2013 2013 Loss per share Basic: Numerator for basic income (loss) per share $ 2,723 $ 1,322 $ 237 Denominator for basic income (loss) per share 25,238,412 15,624,999 14,556,050 Basic income (loss) per common share $ 0.11 $ 0.08 $ 0.02 Loss per share Diluted: Numerator for diluted income (loss) per share $ 2,723 $ 1,322 237 Adjust: Fair value of dilutive warrants outstanding (3,429) (5,020) (2,149) Numerator for diluted income (loss) per share $ (706) (3,698) (1,912) Denominator for basic income (loss) per share 25,238,412 15,624,999 14,556,050 Plus: Incremental shares underlying warrants outstanding 8,252,777 5,135,411 5,150,160 Denominator for diluted income (loss) per share 33,491,189 20,760,410 19,706,210 Diluted income (loss) per common share $ (0.02) $ (0.18) $ (0.10) (restated) (restated) For the three months For the year ended March 31, ended December 31, (amounts in 000s, except share and per share data) 2013 2010 Loss per share Basic: Numerator for basic income (loss) per share $ 1,514 $ 3,880 Denominator for basic income (loss) per share 12,009,285 2,087,068 Basic income (loss) per common share $ 0.13 $ 1.86 Loss per share Diluted: Numerator for diluted income (loss) per share $ 1,514 $ 3,880 Adjust: Fair value of dilutive warrants outstanding (2,756) - Numerator for diluted income (loss) per share $ (1,242) $ 3,880 Denominator for basic income (loss) per share 12,009,285 2,087,068 Plus: Incremental shares underlying warrants outstanding 5,624,075 - Denominator for diluted income (loss) per share 17,633,360 2,087,068 Diluted income (loss) per common share $ (0.07) $ 1.86 (1) (1) |
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: March 31, 2015 2014 Shares underlying warrants outstanding 5,009,848 16,820,281 Shares underlying options outstanding 2,094,562 2,375,748 Unvested restricted stock 132,077 59,199 | The following securities have been excluded from the dilutive per share computation as they are antidilutive: December 31, 2014 2013 Shares underlying options outstanding 2,472,234 2,410,134 Shares underlying warrants outstanding 16,752,915 5,081,023 Unvested restricted stock 132,077 75,450 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | ||
Schedule of Inventory, Current | The Company’s inventory as of March 31, 2015 and December 31, 2014 was as follows: March 31, 2015 December 31, 2014 (Unaudited) (Audited) Total Gross Inventory, Finished Goods $ 308,000 $ 297,000 Less: Inventory reserve (100,000) (111,000) Total Inventory $ 208,000 $ 186,000 | The Company’s inventory components as of December 31, 2014 and 2013 were as follows: December 31, 2014 2013 Total gross inventory, finished goods $ 297,000 $ 527,000 Less: inventory reserve (111,000) (365,000) Total inventory $ 186,000 $ 162,000 |
Prepaid Expenses and Other Cu35
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Other Assets [Abstract] | |
Schedule Of Prepaid Expenses And Other Current Assets | Prepaid expenses and other current assets as of December 31, 2014 and 2013 were as follows: December 31, 2014 2013 Prepaid insurance premiums $ 70,000 $ 70,000 Security deposit 21,000 21,000 Other 13,000 34,000 Prepaid expenses and other current assets $ 104,000 $ 125,000 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment as of December 31, 2014 and 2013 was as follows: December 31, Life 2014 2013 Manufacturing equipment 3-5 years $ 599,000 $ 599,000 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 734,000 734,000 Less: accumulated depreciation 733,000 727,000 Property and equipment, net $ 1,000 $ 7,000 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses as of December 31, 2014 and 2013 were as follows: December 31, 2014 2013 Accrued legal $ 145,000 $ 149,000 Accrued management bonus 50,000 81,000 Accrued directors’ compensation 36,000 - Accrued stock transfer agent fees 27,000 - Accrued accounting 23,000 - Accrued interest 14,000 39,000 Accrued product recall - 60,000 Accrued other 47,000 36,000 $ 342,000 $ 365,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income tax provision computed at the statutory tax rate to the Company’s effective tax rate is as follows: 2014 2013 U.S. federal statutory rate 35.00 % 35.00 % Warrant liability (23.70) % (155.10) % State & local taxes 5.02 % 6.40 % Tax on foreign operations 0.20 % 2.00 % State research and development credits 0.55 % (3.10) % Other (3.10) % 6.50 % Valuation allowance (13.97) % 108.30 % Effective tax rate - - |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets as of December 31, 2014 and 2013 are as follows: 2014 2013 Deferred tax assets: Net operating loss carry forwards $ 27,935,165 $ 27,029,000 Research and development credits 1,118,389 1,096,000 Nonqualified stock option compensation expense 1,913,673 1,801,000 Other temporary book - tax differences 436,178 408,000 Total deferred tax assets 31,403,405 30,334,000 Valuation allowance for deferred tax assets (31,403,405) (30,334,000) Net deferred tax assets $ - $ - |
Stock Plans, Share-Based Paym39
Stock Plans, Share-Based Payments and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary Of Option Activity | The following table summarizes the option activity for the years ended December 31, 2014 and 2013: Shares Weighted Outstanding at December 31, 2012 2,294,714 $ 2.14 Options granted 237,315 0.64 Options forfeited or expired (121,895) 3.27 Outstanding at December 31, 2013 2,410,134 1.28 Options granted 352,519 0.50 Options forfeited or expired (290,419) 2.45 Outstanding at December 31, 2014 2,472,234 $ 0.96 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable | The following table summarizes the options exercisable and vested and expected to vest as of December 31, 2014 and 2013: Shares Weighted Exercisable at December 31, 2013 1,385,199 $ 1.46 Vested and expected to vest at December 31, 2013 2,350,688 $ 1.29 Exercisable at December 31, 2014 1,679,392 $ 1.11 Vested and expected to vest at December 31, 2014 2,426,249 $ 1.04 |
Summary Of Information About Stock Options Outstanding And Exercisable | The following table summarizes information about stock options outstanding and exercisable at December 31, 2014: Options Outstanding Options Exercisable Range of Exercise Number Weighted Weighted Number Weighted $0.33 - $2.60 2,460,284 8.57 $ 0.91 1,667,441 $ 0.92 $15.40 - $29.80 10,450 4.51 $ 21.89 10,450 $ 21.89 $51.40-$96.00 1,500 1.58 $ 64.47 1,500 $ 64.47 Total Outstanding 2,472,234 $ 0.96 1,679,392 $ 1.11 |
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 for the risk-free interest rates, expected dividend yield, expected lives and expected stock price volatility. Option Pricing Assumptions Grant Year 2014 2013 Stock Price Volatility 129.8 % 129.8 % Risk-Free Interest Rates 1.86 % 1.36 % Expected Life (in years) 5.84 5.91 Expected Dividend Yield 0 % 0 % |
Summary Of Restricted Stock Activity | The following table summarizes restricted stock activity for the year end December 31, 2014 and 2013: Shares Weighted 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 Granted 132,077 0.86 Vested (75,450) 0.66 Nonvested at December 31, 2014 132,077 $ 0.86 |
Summary Of Terms Of Outstanding Warrants | The following table summarizes certain terms of all of the Company’s outstanding warrants at December 31, 2014 and 2013: Total Outstanding Warrants Title of Warrant Date Issued Expiry Date Exercise Price Total Common 2014 2013 Liability-classified warrants 2007 Warrants - Lambda 11/14/2007 3/21/2019 $ 0.30 11,742,100 8,806,575 11,742,100 8,806,575 Equity-classified warrants July 2009 Warrants 7/24/2009 7/24/2014 $ 22.40 - 33,629 Shareholder Rights Offering Warrants 3/10/2011 3/10/2016 $ 0.40 2,228,238 2,264,817 March 2011 Lambda Warrants 3/10/2011 3/21/2019 $ 0.40 2,782,577 2,782,577 5,010,815 5,081,023 Total 16,752,915 13,887,598 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
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, 2014: Payments Due in Period Total Within Years Years More than Leases $ 106,000 $ 104,000 $ 2,000 $ - $ - Employment Contracts (1) 175,000 175,000 - - - Total $ 281,000 $ 279,000 $ 2,000 $ - $ - (1) |
Organization and Nature of Op41
Organization and Nature of Operations (Details Textual) | 12 Months Ended |
Dec. 31, 2014 | |
Organization And Nature Of Operations [Line Items] | |
Number Of Products In Development | 2 |
Restatement of Previously Iss42
Restatement of Previously Issued Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Jan. 01, 2009 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||
Warrant liability | $ 6,377 | $ 7,116 | $ 10,544 | $ 5,859 | $ 7,776 | $ 5,980 | $ 5,372 | $ 10,544 | $ 5,980 | $ 7,116 | $ 7,776 | $ 7,386 | $ 3,109 | $ 8,129 | $ 5,096 | $ 458 | $ 6,272 | $ 2,107 | |
Additional Paid-in Capital | 108,409 | 105,322 | 105,219 | 105,114 | 102,848 | 102,648 | 99,445 | 105,219 | 102,648 | 105,322 | 102,848 | 108,382 | 102,983 | 99,304 | 97,759 | 94,108 | 93,944 | 86,612 | |
Accumulated Deficit | (113,922) | (112,921) | (115,644) | (110,305) | (110,287) | (107,879) | (106,602) | (115,644) | (107,879) | (112,921) | (110,287) | (114,165) | (106,794) | (108,116) | (101,493) | (94,495) | (98,375) | (86,293) | |
Change in fair value of warrant liability | (1,009) | 3,428 | (4,685) | 2,751 | (1,797) | (608) | 2,756 | (7,436) | 2,149 | (4,007) | 352 | 4,277 | (5,020) | (3,361) | (4,638) | 5,813 | (10,056) | ||
Net income (loss) | $ 243 | $ 2,723 | $ (5,339) | $ (3,511) | $ (2,408) | $ (1,279) | $ 1,514 | $ (8,850) | $ 237 | $ (6,127) | $ (2,171) | $ (7,371) | $ 1,322 | $ (6,623) | $ (6,998) | $ 3,880 | $ (12,082) | ||
Net income (loss) per share, basic | $ 0.01 | $ 0.11 | $ (0.19) | $ 0.13 | $ 0.02 | $ (0.31) | $ 0.08 | $ 1.86 | |||||||||||
Net income (loss) per share, diluted | $ (0.02) | $ (0.02) | (0.19) | $ (0.07) | $ (0.10) | $ (0.31) | $ (0.18) | 1.86 | [1] | ||||||||||
Net income (loss) per share, basic and diluted | $ (0.21) | $ (0.19) | $ (0.14) | $ (0.10) | $ (0.40) | $ (0.27) | $ (0.15) | $ (0.59) | $ (0.81) | $ 1.86 | $ (6.32) | ||||||||
Weighted average common shares outstanding, diluted | 33,491,189 | 17,633,360 | 19,706,210 | 20,760,410 | |||||||||||||||
Comprehensive income (loss) | $ 243 | $ 2,724 | $ (5,340) | $ (3,512) | $ (2,408) | $ (1,281) | $ 1,514 | $ (8,852) | $ 235 | $ (6,128) | $ (2,173) | $ (7,373) | $ 1,320 | $ (6,596) | $ (6,971) | ||||
Scenario, Previously Reported [Member] | |||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||
Warrant liability | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $ 0 | $ 0 | 0 | |||
Additional Paid-in Capital | 102,864 | 102,761 | 102,656 | 100,391 | 100,191 | 96,988 | 102,761 | 100,191 | 102,864 | 100,391 | 100,526 | 96,847 | 95,630 | 91,979 | 91,815 | 90,375 | |||
Accumulated Deficit | (103,348) | (102,642) | (101,988) | (100,053) | (99,442) | (98,772) | (102,642) | (99,442) | (103,348) | (100,053) | (101,228) | (97,530) | (94,268) | (91,908) | (89,975) | (87,949) | |||
Change in fair value of warrant liability | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Net income (loss) | $ (706) | $ (654) | $ (760) | $ (611) | $ (671) | $ (1,242) | $ (1,414) | $ (1,912) | $ (2,120) | $ (2,523) | $ (3,698) | $ (3,262) | $ (2,360) | $ (1,933) | $ (2,026) | ||||
Net income (loss) per share, basic | $ (0.03) | $ (0.10) | $ (0.14) | $ (0.24) | |||||||||||||||
Net income (loss) per share, diluted | $ (0.03) | $ (0.10) | $ (0.14) | $ (0.24) | |||||||||||||||
Net income (loss) per share, basic and diluted | $ (0.03) | $ (0.04) | $ (0.03) | $ (0.05) | $ (0.06) | $ (0.09) | $ (0.17) | $ (0.29) | $ (0.27) | $ (0.93) | $ (1.06) | ||||||||
Weighted average common shares outstanding, diluted | 25,238,412 | 12,009,285 | 14,556,050 | 15,624,999 | |||||||||||||||
Comprehensive income (loss) | $ (705) | $ (655) | $ (761) | $ (611) | $ (673) | $ (1,242) | $ (1,416) | $ (1,914) | $ (2,121) | $ (2,525) | $ (3,700) | $ (3,262) | $ (2,333) | ||||||
Restatement Adjustment [Member] | |||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||
Warrant liability | 7,116 | 10,544 | 5,859 | 7,776 | 5,980 | 5,372 | 10,544 | 5,980 | 7,116 | 7,776 | 3,109 | 8,129 | 5,096 | $ 458 | $ 6,272 | 2,107 | |||
Additional Paid-in Capital | 2,458 | 2,458 | 2,458 | 2,457 | 2,457 | 2,457 | 2,458 | 2,457 | 2,458 | 2,457 | 2,457 | 2,457 | 2,129 | 2,129 | 2,129 | (3,763) | |||
Accumulated Deficit | (9,573) | (13,002) | (8,317) | (10,234) | (8,437) | (7,830) | (13,002) | (8,437) | (9,573) | (10,234) | (5,566) | (10,586) | (7,225) | (2,587) | (8,400) | $ 1,656 | |||
Change in fair value of warrant liability | 3,428 | (4,685) | (2,751) | (1,797) | (608) | 2,756 | (7,436) | 2,149 | (4,007) | 352 | 5,020 | (3,361) | (4,638) | 5,813 | (10,056) | ||||
Net income (loss) | $ 3,428 | $ (4,685) | $ (2,751) | $ (1,797) | $ (608) | $ 2,756 | $ (7,436) | $ 2,149 | $ (4,007) | $ 352 | $ 5,020 | $ (3,361) | $ (4,638) | $ 5,813 | $ (10,056) | ||||
Net income (loss) per share, basic | $ 0.14 | $ 0.23 | $ 0.16 | $ 0.32 | |||||||||||||||
Net income (loss) per share, diluted | $ 0.01 | $ 0.03 | $ 0.04 | $ 0.06 | |||||||||||||||
Net income (loss) per share, basic and diluted | $ (0.18) | $ (0.15) | $ (0.11) | $ (0.05) | $ (0.34) | $ (0.18) | $ 0.02 | $ (0.30) | $ (0.54) | $ 2.79 | $ (5.26) | ||||||||
Weighted average common shares outstanding, diluted | 8,252,777 | 5,624,075 | 5,150,160 | 5,135,411 | |||||||||||||||
Comprehensive income (loss) | $ 3,429 | $ (4,685) | $ (2,751) | $ (1,797) | $ (608) | $ 2,756 | $ (7,436) | $ 2,149 | $ (4,007) | $ 352 | $ 5,020 | $ (3,361) | $ (4,638) | ||||||
[1] | The impact of assumed exercise of warrants is not included because all of the warrants outstanding were “out of the money” during this period. |
Restatement of Previously Iss43
Restatement of Previously Issued Financial Statements (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | ||
Loss per share - Basic: | |||||||||
Numerator for basic income (loss) per share | $ 243,000 | $ 2,723,000 | $ (3,511,000) | $ 1,514,000 | $ 237,000 | $ 1,322,000 | $ 3,880,000 | ||
Denominator for basic income (loss) per share | 30,259,823 | 25,238,412 | 18,816,746 | 12,009,285 | 14,556,050 | 23,817,184 | 15,624,999 | 2,087,068 | |
Basic income (loss) per common share | $ 0.01 | $ 0.11 | $ (0.19) | $ 0.13 | $ 0.02 | $ (0.31) | $ 0.08 | $ 1.86 | |
Loss per share - Diluted: | |||||||||
Numerator for diluted income (loss) per share | $ 243,000 | $ 2,723,000 | $ (3,511,000) | $ 1,514,000 | $ 237,000 | $ 1,322,000 | $ 3,880,000 | ||
Adjust: Change in fair value of dilutive warrants outstanding | (1,009,000) | (3,429,000) | 2,751,000 | (2,756,000) | (2,149,000) | (5,020,000) | 0 | ||
Numerator for diluted income (loss) per share | $ (766,000) | $ (706,000) | $ (760,000) | $ (1,242,000) | $ (1,912,000) | $ (3,698,000) | $ 3,880,000 | ||
Denominator for basic income (loss) per share | 30,259,823 | 25,238,412 | 18,816,746 | 12,009,285 | 14,556,050 | 23,817,184 | 15,624,999 | 2,087,068 | |
Plus: Incremental shares underlying warrants outstanding | 6,822,676 | 8,252,777 | 0 | 5,624,075 | 5,150,160 | 5,135,411 | 0 | ||
Denominator for diluted income (loss) per share | 37,082,499 | 33,491,189 | 18,816,746 | 17,633,360 | 19,706,210 | 23,817,184 | 20,760,410 | 2,087,068 | |
Diluted income (loss) per common share | $ (0.02) | $ (0.02) | $ (0.19) | $ (0.07) | $ (0.10) | $ (0.31) | $ (0.18) | $ 1.86 | [1] |
[1] | The impact of assumed exercise of warrants is not included because all of the warrants outstanding were “out of the money” during this period. |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details) - shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 16,752,915 | 5,081,023 |
Unvested restricted stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 132,077 | 75,450 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 2,472,234 | 2,410,134 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details Textual) - Subsequent Event Type [Domain] | Nov. 12, 2013USD ($) | Feb. 04, 2013USD ($) | Dec. 18, 2014USD ($) | Aug. 29, 2014USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Summary of Significant Accounting Policies [Line Items] | ||||||||
Proceeds from Issuance of Common Stock | $ 3,000,000 | $ 0 | $ 2,016,000 | $ 4,866,000 | $ 2,771,000 | |||
Allowance for Doubtful Accounts Receivable | 1,000 | 0 | ||||||
Deferred Revenue | 487,000 | 703,000 | ||||||
Licenses Revenue | 17,000 | 254,000 | 834,000 | 711,000 | ||||
Recognition of Deferred Revenue | 487,000 | |||||||
Shipping, Handling and Transportation Costs | 4,000 | 5,000 | ||||||
Amortization of Financing Costs | 142,000 | 399,000 | ||||||
Other Nonoperating Income (Expense), Total | 51,000 | (3,000) | 58,000 | (33,000) | ||||
Interest and Other Income | 17,000 | |||||||
Other Income Adjustments to Liabilities and Foreign Currency Losses | 36,000 | |||||||
Allowance for Doubtful Accounts Receivable, Write-offs | 0 | 0 | ||||||
Sales Returns and Allowances, Goods | $ 0 | $ 0 | ||||||
Sales Revenue, Net [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Number of Major Customers | 3 | 3 | ||||||
Concentration Risk, Percentage | 78.00% | 86.00% | ||||||
Accounts Receivable [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Number of Major Customers | 3 | 2 | ||||||
Concentration Risk, Percentage | 83.00% | 97.00% | ||||||
Senior Notes [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Amortization of Financing Costs | $ 204,000 | $ 53,000 | ||||||
Warrant [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Other Income Adjustments to Liabilities and Foreign Currency Losses | $ 14,000 | |||||||
Lambda Investors [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Amortization of Financing Costs | $ 178,000 | |||||||
Lambda Investors [Member] | Senior Notes [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 1,750,000 | |||||||
Amortization of Financing Costs | $ 204,000 | $ 195,000 | ||||||
Steris Agreement Termination [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Interest and Other Income | $ 15,000 | |||||||
Nonsoftware License Arrangement [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Deferred Revenue | 470,000 | $ 254,000 | ||||||
Licenses Revenue | $ 2,589,000 | |||||||
Bellco [Member] | Nonsoftware License Arrangement [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Deferred Revenue | $ 2,606,000 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales Revenue [Member] | Customer A [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 30.00% | 9.00% | ||
Sales Revenue [Member] | Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 28.00% | 25.00% | ||
Sales Revenue [Member] | Customer C [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 18.00% | 0.00% | ||
Sales Revenue [Member] | Customer D [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 3.00% | 54.00% | ||
Accounts Receivable [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 83.00% | 97.00% | ||
Accounts Receivable [Member] | Customer A [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 35.00% | 22.00% | ||
Accounts Receivable [Member] | Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 17.00% | 0.00% | ||
Accounts Receivable [Member] | Customer C [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 16.00% | 0.00% | ||
Accounts Receivable [Member] | Customer D [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 12.00% | 25.00% | ||
Accounts Receivable [Member] | Customer E [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 0.00% | 35.00% |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) - USD ($) | 3 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Deferred Revenue Arrangement [Line Items] | ||||
Deferred Revenue | $ 487,000 | $ 703,000 | ||
License Agreement [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred Revenue | $ 470,000 | $ 254,000 | ||
License Agreement [Member] | Bellco [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Revenue recognized | 17,000 | |||
Deferred Revenue | $ 2,606,000 | |||
Deferred Revenue, Description | Approximately $52,000 of revenue will be recognized in the remaining nine months of fiscal year 2015 and approximately $69,000 of revenue will be recognized in each of the years ended December 31, 2016 through 2021. |
Fair Value of Financial Instr48
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability | $ 6,377 | $ 7,386 | $ 3,109 |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability | $ 6,377 | $ 7,386 | $ 3,109 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||
Balance | $ 7,386 | $ 10,544 | $ 5,859 | $ 3,109 | $ 5,980 | $ 5,372 | $ 8,129 | $ 3,109 | $ 8,129 | $ 3,109 | $ 8,129 | $ 3,109 | $ 8,129 | $ 5,096 | $ 458 | $ 6,272 | $ 2,107 |
Increase (Decrease) in fair value of warrant liability | (1,009) | 3,428 | (4,685) | 2,751 | (1,797) | (608) | 2,756 | (7,436) | 2,149 | (4,007) | 352 | 4,277 | (5,020) | (3,361) | (4,638) | 5,813 | (10,056) |
Balance | 6,377 | $ 7,116 | $ 10,544 | 5,859 | $ 7,776 | $ 5,980 | 5,372 | 10,544 | 5,980 | 7,116 | 7,776 | 7,386 | 3,109 | 8,129 | $ 5,096 | $ 458 | $ 6,272 |
2007 Warrants | |||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||
Balance | $ 7,386 | $ 3,109 | $ 8,129 | $ 3,109 | $ 8,129 | $ 3,109 | $ 8,129 | 3,109 | 8,129 | ||||||||
Increase (Decrease) in fair value of warrant liability | 4,277 | (5,020) | |||||||||||||||
Balance | $ 7,386 | $ 3,109 | $ 8,129 |
Fair Value of Financial Instr50
Fair Value of Financial Instruments (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Calculated aggregate value | $ 6,377 | $ 7,386 | $ 3,109 |
Weighted average exercise price | $ 0.30 | $ 0.30 | $ 0.40 |
Closing price per share of common stock | $ 0.60 | $ 0.79 | $ 0.42 |
Volatility | 138.00% | 165.60% | 103.50% |
Weighted average remaining expected life (years) | 4 years 8 months 12 days | 5 years | 5 years |
Risk-free interest rate | 1.40% | 1.80% | 1.60% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Fair Value of Financial Instr51
Fair Value of Financial Instruments (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | |
Fair Value Disclosures [Line Items] | |||||||
Amount of dilutive securities effect on earnings per share warrants | $ (1,009,000) | $ (3,429,000) | $ 2,751,000 | $ (2,756,000) | $ (2,149,000) | $ (5,020,000) | $ 0 |
Stock Plans, Share-Based Paym52
Stock Plans, Share-Based Payments and Warrants (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 352,519 | 237,315 |
Shares, Options forfeited or expired | (290,419) | (121,895) |
Shares, Outstanding at end of year | 2,472,234 | 2,410,134 |
Weighted Average Exercise Price, Outstanding at beginning of year | $ 1.28 | $ 2.14 |
Weighted Average Exercise Price, Options granted | 0.50 | 0.64 |
Weighted Average Exercise Price, Options forfeited or expired | 2.45 | 3.27 |
Weighted Average Exercise Price, Outstanding at end of year | $ 0.96 | $ 1.28 |
Stock Plans, Share-Based Paym53
Stock Plans, Share-Based Payments and Warrants (Details 1) - $ / shares | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Exercisable | 1,679,392 | 1,385,199 |
Shares, Vested and expected to vest | 2,426,249 | 2,350,688 |
Weighted Average Exercise Price, Exercisable | $ 1.11 | $ 1.46 |
Weighted Average Exercise Price, Vested and expected to vest | $ 1.04 | $ 1.29 |
Stock Plans, Share-Based Paym54
Stock Plans, Share-Based Payments and Warrants (Details 2) - Dec. 31, 2014 - $ / shares | Total |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding as of December 31, 2014 | 2,472,234 |
Options Outstanding, Weighted Average Exercise Price | $ 0.96 |
Options Exercisable, Number Exercisable as of December 31, 2014 | 1,679,392 |
Options Exercisable, Weighted Average Exercise Price | $ 1.11 |
$0.33 - $2.60 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 0.33 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 2.60 |
Options Outstanding, Number Outstanding as of December 31, 2014 | 2,460,284 |
Options Outstanding, Weighted Average Remaining Contractual Life In Years | 8 years 6 months 25 days |
Options Outstanding, Weighted Average Exercise Price | $ 0.91 |
Options Exercisable, Number Exercisable as of December 31, 2014 | 1,667,441 |
Options Exercisable, Weighted Average Exercise Price | $ 0.92 |
$15.40 - $29.80 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 15.4 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 29.80 |
Options Outstanding, Number Outstanding as of December 31, 2014 | 10,450 |
Options Outstanding, Weighted Average Remaining Contractual Life In Years | 4 years 6 months 4 days |
Options Outstanding, Weighted Average Exercise Price | $ 21.89 |
Options Exercisable, Number Exercisable as of December 31, 2014 | 10,450 |
Options Exercisable, Weighted Average Exercise Price | $ 21.89 |
$51.40-$96.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 51.40 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 96 |
Options Outstanding, Number Outstanding as of December 31, 2014 | 1,500 |
Options Outstanding, Weighted Average Remaining Contractual Life In Years | 1 year 6 months 29 days |
Options Outstanding, Weighted Average Exercise Price | $ 64.47 |
Options Exercisable, Number Exercisable as of December 31, 2014 | 1,500 |
Options Exercisable, Weighted Average Exercise Price | $ 64.47 |
Stock Plans, Share-Based Paym55
Stock Plans, Share-Based Payments and Warrants (Details 3) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Price Volatility | 129.80% | 129.80% |
Risk-Free Interest Rates | 1.86% | 1.36% |
Expected Life (in years) | 5 years 10 months 2 days | 5 years 10 months 28 days |
Expected Dividend Yield | 0.00% | 0.00% |
Stock Plans, Share-Based Paym56
Stock Plans, Share-Based Payments and Warrants (Details 4) - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Warrant or Right [Line Items] | ||
Shares, Granted | 352,519 | 237,315 |
Weighted Average Grant Date Fair Value, Granted | $ 0.45 | $ 0.56 |
Restricted Stock [Member] | ||
Class of Warrant or Right [Line Items] | ||
Shares, Nonvested | 75,450 | 0 |
Shares, Granted | 132,077 | 398,227 |
Shares, Vested | (75,450) | (264,770) |
Shares, Forfeited | (58,007) | |
Shares, Nonvested | 132,077 | 75,450 |
Weighted Average Grant Date Fair Value, Nonvested | $ 0.66 | $ 0 |
Weighted Average Grant Date Fair Value, Granted | 0.86 | 0.73 |
Weighted Average Grant Date Fair Value, Vested | 0.66 | 0.71 |
Weighted Average Grant Date Fair Value, Forfeited | 0.88 | |
Weighted Average Grant Date Fair Value, Nonvested | $ 0.86 | $ 0.66 |
Stock Plans, Share-Based Paym57
Stock Plans, Share-Based Payments and Warrants (Details 5) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2014 | Nov. 10, 2014 | Feb. 14, 2014 | Dec. 31, 2013 | May. 17, 2013 | |
Class of Warrant or Right [Line Items] | |||||
Exercise Price | $ 0.33 | $ 0.60 | $ 0.30 | $ 0.45 | $ 0.60 |
Total Common Shares Issuable | 5,010,815 | 5,081,023 | |||
July 2009 Warrants [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Date Issued | Jul. 24, 2009 | ||||
Expiry Date | Jul. 24, 2014 | ||||
Exercise Price | $ 22.40 | ||||
Total Common Shares Issuable | 0 | 33,629 | |||
Shareholder Rights Offering Warrants [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Date Issued | Mar. 10, 2011 | ||||
Expiry Date | Mar. 10, 2016 | ||||
Exercise Price | $ 0.40 | ||||
Total Common Shares Issuable | 2,228,238 | 2,264,817 | |||
March 2011 Lambda Warrants [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Date Issued | Mar. 10, 2011 | ||||
Expiry Date | Mar. 21, 2019 | ||||
Exercise Price | $ 0.40 | ||||
Total Common Shares Issuable | 2,782,577 | 2,782,577 | |||
2007 Warrants - Lambda [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Date Issued | Nov. 11, 2007 | ||||
Expiry Date | Mar. 21, 2019 | ||||
Exercise Price | $ 0.30 | ||||
Total Common Shares Issuable | 11,742,100 | 8,806,575 |
Stock Plans, Share-Based Paym58
Stock Plans, Share-Based Payments and Warrants (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 18, 2014 | Mar. 21, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 15, 2015 | Nov. 10, 2014 | Feb. 14, 2014 | May. 17, 2013 | Mar. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation expense | $ 20,000 | $ 118,000 | $ 421,000 | $ 418,000 | ||||||||
Unrecognized compensation cost related to non-vested options | $ 111,000 | $ 504,000 | ||||||||||
Weighted average remaining requisite service period for unrecognized compensation cost | 3 years 1 month 6 days | 1 year 10 months 24 days | ||||||||||
Noncash stock-based compensation, including stock options and restricted stock | $ 26,000 | 120,000 | $ 429,000 | $ 575,000 | ||||||||
Share-based Compensation, Total | $ 6,000 | |||||||||||
Expected recognition of unrecognized compensation costs due in current year | 65.00% | |||||||||||
Expected recognition of unrecognized compensation costs due in one year | 27.00% | |||||||||||
Expected recognition of unrecognized compensation costs due in three years | 8.00% | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 2,000 | $ 8,000 | ||||||||||
options outstanding | 2,472,234 | 2,410,134 | 2,294,714 | |||||||||
Fair value of options vested | $ 507,000 | $ 519,000 | ||||||||||
Weighted-average fair value of options granted | $ 0.45 | $ 0.56 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 241,000 | $ 0 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 235,000 | $ 0 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 7 years 6 months | 8 years 1 month 6 days | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.33 | $ 0.45 | $ 0.60 | $ 0.30 | $ 0.60 | |||||||
Warrants Exercised | 791,278 | 2,254,500 | ||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments, Total | 1,000 | $ 15,000 | $ 248,000 | |||||||||
Stock Issued During Period, Shares, New Issues | 7,140,823 | 36,570 | ||||||||||
Proceeds from Issuance of Common Stock | $ 3,000,000 | 0 | 2,016,000 | $ 4,866,000 | $ 2,771,000 | |||||||
Additional Shares Not Issued Results Of Warrants Exercised | 9 | 374 | ||||||||||
Shareholders Equity [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | |||||||||||
Right Offering [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Warrants Exercised | 14,879,708 | |||||||||||
Stock Issued During Period, Shares, New Issues | 687,793 | |||||||||||
Proceeds from Issuance of Common Stock | $ 206,000 | |||||||||||
Incremental Fair Value Of Inducement | $ 14,000 | |||||||||||
Maximum | Right Offering [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | |||||||||||
Minimum | Right Offering [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.30 | |||||||||||
Class D Warrant [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | |||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 11,742,100 | |||||||||||
Warrants Exercised Under Cashless Exercise Provision | $ 0.30 | |||||||||||
Warrants Exercised | 8,806,575 | |||||||||||
Class D Warrant Lambda [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 11,742,100 | |||||||||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Mar. 21, 2019 | |||||||||||
Shareholder Rights Offering Warrant [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Warrants Exercised | 104,206 | |||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments, Total | $ 42,000 | |||||||||||
Employee Stock Option [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Noncash stock-based compensation, including stock options and restricted stock | 16,000 | 110,000 | ||||||||||
Employee Stock Option [Member] | Research and Development Expense [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Noncash stock-based compensation, including stock options and restricted stock | $ 4,000 | $ 8,000 | ||||||||||
CEO Stock Options [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares issued | 331,550 | 331,550 | ||||||||||
Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation expense | $ 109,000 | |||||||||||
Weighted-average fair value of options granted | $ 0.86 | $ 0.73 | ||||||||||
2000 Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized for issuance | 106,538 | |||||||||||
options outstanding | 2,834 | |||||||||||
2000 Plan [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 | |||||||||||
2004 Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized for issuance | 4,500,000 | |||||||||||
Shares available for future grants | 2,054,799 | 2,407,318 | ||||||||||
2004 Plan [Member] | Employee Stock Option [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
options outstanding | 1,236,975 | 1,028,509 | ||||||||||
2004 Plan [Member] | Non Employee Stock Options [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
options outstanding | 903,709 | 715,692 | ||||||||||
Shares available for future grants | 903,709 | 715,692 |
Warrants (Details Textual)
Warrants (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 21, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Warrants [Line Items] | |||||
Warrants exercised | 791,278 | 2,254,500 | |||
Proceeds from issuance of common stock | $ 1,000 | $ 1,000 | $ 15,000 | $ 248,000 | |
Stock issued during period, shares, new issues | 7,140,823 | 36,570 | |||
Warrant [Member] | |||||
Warrants [Line Items] | |||||
Warrants exercised | 20,927 | ||||
Rights Offering [Member] | |||||
Warrants [Line Items] | |||||
Warrants exercised | 14,879,708 | ||||
Stock issued during period, shares, new issues | 687,793 | ||||
Common Stock [Member] | |||||
Warrants [Line Items] | |||||
Proceeds from issuance of common stock | $ 1,000 | ||||
Stock issued during period, shares, new issues | 967 |
Net Income (Loss) per Common 60
Net Income (Loss) per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | ||
Loss per share - Basic: | |||||||||
Numerator for basic income (loss) per share | $ 243,000 | $ 2,723,000 | $ (3,511,000) | $ 1,514,000 | $ 237,000 | $ 1,322,000 | $ 3,880,000 | ||
Denominator for basic income (loss) per share | 30,259,823 | 25,238,412 | 18,816,746 | 12,009,285 | 14,556,050 | 23,817,184 | 15,624,999 | 2,087,068 | |
Basic income (loss) per common share | $ 0.01 | $ 0.11 | $ (0.19) | $ 0.13 | $ 0.02 | $ (0.31) | $ 0.08 | $ 1.86 | |
Loss per share - Diluted: | |||||||||
Numerator for diluted income (loss) per share | $ 243,000 | $ 2,723,000 | $ (3,511,000) | $ 1,514,000 | $ 237,000 | $ 1,322,000 | $ 3,880,000 | ||
Adjust: Change in fair value of dilutive warrants outstanding | (1,009,000) | (3,429,000) | 2,751,000 | (2,756,000) | (2,149,000) | (5,020,000) | 0 | ||
Numerator for diluted income (loss) per share | $ (766,000) | $ (706,000) | $ (760,000) | $ (1,242,000) | $ (1,912,000) | $ (3,698,000) | $ 3,880,000 | ||
Denominator for basic income (loss) per share | 30,259,823 | 25,238,412 | 18,816,746 | 12,009,285 | 14,556,050 | 23,817,184 | 15,624,999 | 2,087,068 | |
Plus: Incremental shares underlying warrants outstanding | 6,822,676 | 8,252,777 | 0 | 5,624,075 | 5,150,160 | 5,135,411 | 0 | ||
Denominator for diluted income (loss) per share | 37,082,499 | 33,491,189 | 18,816,746 | 17,633,360 | 19,706,210 | 23,817,184 | 20,760,410 | 2,087,068 | |
Diluted income (loss) per common share | $ (0.02) | $ (0.02) | $ (0.19) | $ (0.07) | $ (0.10) | $ (0.31) | $ (0.18) | $ 1.86 | [1] |
[1] | The impact of assumed exercise of warrants is not included because all of the warrants outstanding were “out of the money” during this period. |
Net Income (Loss) per Common 61
Net Income (Loss) per Common Share (Details 1) - shares | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 5,009,848 | 16,820,281 |
Unvested restricted stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 132,077 | 59,199 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 2,094,562 | 2,375,748 |
Inventory, net (Details)
Inventory, net (Details) - USD ($) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | |||
Total Gross Inventory, Finished Goods | $ 308,000 | $ 297,000 | $ 527,000 |
Less: Inventory reserve | (100,000) | (111,000) | (365,000) |
Total Inventory | $ 208,000 | $ 186,000 | $ 162,000 |
Prepaid Expenses and Other Cu63
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Prepaid Expenses And Other Current Assets [Line Items] | ||
Prepaid insurance premiums | $ 70,000 | $ 70,000 |
Security deposit | 21,000 | 21,000 |
Other | 13,000 | 34,000 |
Prepaid expenses and other current assets | $ 104,000 | $ 125,000 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 734,000 | $ 734,000 | |
Less: accumulated depreciation | 733,000 | 727,000 | |
Property and equipment, net | 1,000 | $ 0 | 7,000 |
Manufacturing Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 599,000 | 599,000 | |
Manufacturing Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Life | 3 years | ||
Manufacturing Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Life | 5 years | ||
Research Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 37,000 | 37,000 | |
Property and equipment, Life | 5 years | ||
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 59,000 | 59,000 | |
Computer Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Life | 3 years | ||
Computer Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, Life | 4 years | ||
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 39,000 | $ 39,000 | |
Property and equipment, Life | 7 years |
Property and Equipment, Net (65
Property and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation, Depletion and Amortization | $ 6,000 | $ 9,000 |
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ 0 | $ 3,000 |
Senior Secured Notes (Details T
Senior Secured Notes (Details Textual) - USD ($) | Nov. 12, 2013 | Aug. 29, 2014 | Mar. 21, 2014 | May. 22, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 12.00% | 12.00% | ||||||
Legal fees | $ 128,000 | |||||||
Amortization of debt discount (premium) | $ 195,000 | $ 178,000 | $ 204,000 | $ 0 | $ 142,000 | $ 320,000 | $ 257,000 | |
Interest Expense, Debt | 178,000 | |||||||
Interest Expense, Total | $ 11,000 | $ 195,000 | 483,000 | 351,000 | ||||
Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Transaction fees | 140,000 | |||||||
Interest Expense, Total | $ 142,000 | $ 53,000 | ||||||
Lambda Investors LLC [Member] | Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,500,000 | $ 1,750,000 | ||||||
Debt instrument, interest rate, stated percentage | 12.00% | 12.00% | ||||||
Debt instrument, maturity date | May 12, 2014 | Feb. 28, 2015 | ||||||
Percentage of sourcing fees | 8.00% | 8.00% | ||||||
Transaction fees | $ 120,000 | |||||||
Legal fees | $ 75,000 | $ 38,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accrued Expenses [Line Items] | |||
Accrued legal | $ 145,000 | $ 149,000 | |
Accrued management bonus | 50,000 | 81,000 | |
Accrued directors’ compensation | 36,000 | 0 | |
Accrued stock transfer agent fees | 27,000 | 0 | |
Accrued accounting | 23,000 | 0 | |
Accrued interest | 14,000 | 39,000 | |
Accrued product recall | 0 | 60,000 | |
Accrued other | 47,000 | 36,000 | |
Accrued Liabilities, Current | $ 432,000 | $ 342,000 | $ 365,000 |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Holiday [Line Items] | ||
U.S. federal statutory rate | 35.00% | 35.00% |
Warrant liability | (23.70%) | (155.10%) |
State & local taxes | 5.02% | 6.40% |
Tax on foreign operations | 0.20% | 2.00% |
State research and development credits | 0.55% | (3.10%) |
Other | (3.10%) | 6.50% |
Valuation allowance | (13.97%) | 108.30% |
Effective tax rate | 0.00% | 0.00% |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 27,935,165 | $ 27,029,000 |
Research and development credits | 1,118,389 | 1,096,000 |
Nonqualified stock option compensation expense | 1,913,673 | 1,801,000 |
Other temporary book - tax differences | 436,178 | 408,000 |
Total deferred tax assets | 31,403,405 | 30,334,000 |
Valuation allowance for deferred tax assets | (31,403,405) | (30,334,000) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Research Tax Credit Carryforward [Member] | ||
Income Tax [Line Items] | ||
Tax Credit Carryforward, Amount | $ 1,118,389 | $ 1,096,000 |
Federal And New Jersey [Member] | ||
Income Tax [Line Items] | ||
Operating Loss Carryforwards | 92,928,000 | |
Foreign [Member] | ||
Income Tax [Line Items] | ||
Operating Loss Carryforwards | $ 8,070,000 | |
Foreign [Member] | Maximum [Member] | ||
Income Tax [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2026 | |
Foreign [Member] | Minimum [Member] | ||
Income Tax [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2014 |
Stockholder's Deficit (Details
Stockholder's Deficit (Details Textual) - Entity [Domain] - Equity Component [Domain] - USD ($) | Nov. 12, 2013 | Dec. 18, 2014 | Aug. 29, 2014 | Mar. 21, 2014 | May. 22, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 10, 2014 | Oct. 20, 2014 | Feb. 14, 2014 | Jan. 07, 2014 | May. 17, 2013 | Mar. 04, 2013 |
Stockholder Equity Note [Line Items] | |||||||||||||||
Authorized value of rights offering | $ 3,000,000 | $ 2,800,000 | $ 3,000,000 | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.11901 | 0.28673 | 0.18776 | ||||||||||||
Class of warrant or right issued gross value received | $ 3,000,000 | $ 2,100,000 | $ 3,000,000 | ||||||||||||
Class of warrant or right issued net value received | 1,100,000 | 581,000 | 1,400,000 | ||||||||||||
Represents repayment of accrued interest on senior secured note | 64,000 | 61,000 | 46,800 | ||||||||||||
Debt Instrument, Fee Amount | 104,000 | ||||||||||||||
Reimbursement of legal fee | $ 75,000 | $ 100,000 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.33 | $ 0.45 | $ 0.60 | $ 0.30 | $ 0.60 | ||||||||||
Class Of Warrant Or Right Issued Shares | 5,000,000 | 5,000,000 | |||||||||||||
Repayments of Senior Debt, Total | $ 1,750,000 | $ 1,500,000 | $ 1,300,000 | $ 0 | $ 1,500,000 | $ 3,250,000 | $ 1,300,000 | ||||||||
Subscription Rights Percentage | 77.00% | ||||||||||||||
Legal Fees | $ 128,000 | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 7,140,823 | 36,570 | |||||||||||||
Amortization of Debt Discount (Premium) | $ 195,000 | $ 178,000 | $ 204,000 | $ 0 | $ 142,000 | $ 320,000 | $ 257,000 |
401(k) Plan (Details Textual)
401(k) Plan (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jan. 01, 2004 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 15.00% | ||
Defined Contribution Plan, Cost Recognized | $ 43,000 | $ 46,000 | |
3% Employee Contribution [Member] | |||
Defined Contribution Plan Employee Matched Contributions Percent | 3.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 100.00% | ||
2% Employee Contribution [Member] | |||
Defined Contribution Plan Employee Matched Contributions Percent | 2.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% |
Commitments and Contingencies73
Commitments and Contingencies (Details) | Dec. 31, 2014USD ($) | |
Payments Due, Total | $ 281,000 | |
Payments Due Within 1 Year | 279,000 | |
Payments Due Within 1 - 3 Years | 2,000 | |
Payments Due Within 4 - 5 Years | 0 | |
Payments Due More Than 5 Years | 0 | |
Employment Contracts [Member] | ||
Payments Due, Total | [1] | 175,000 |
Payments Due Within 1 Year | [1] | 175,000 |
Payments Due Within 1 - 3 Years | [1] | 0 |
Payments Due Within 4 - 5 Years | [1] | 0 |
Payments Due More Than 5 Years | [1] | 0 |
Leases [Member] | ||
Payments Due, Total | 106,000 | |
Payments Due Within 1 Year | 104,000 | |
Payments Due Within 1 - 3 Years | 2,000 | |
Payments Due Within 4 - 5 Years | 0 | |
Payments Due More Than 5 Years | $ 0 | |
[1] | Represents amount payable under severance agreement for John C. Houghton, effective January 4, 2015. See Note 15, Subsequent Events, for further discussion. |
Commitments and Contingencies74
Commitments and Contingencies (Details Textual) | Feb. 04, 2013USD ($) | Feb. 04, 2013EUR (€) | Aug. 27, 2014USD ($) | May. 23, 2013USD ($) | May. 23, 2013EUR (€) | Apr. 23, 2012USD ($) | Apr. 23, 2012EUR (€) | Mar. 31, 2015USD ($)$ / Productshares | Mar. 31, 2015EUR (€)shares | Mar. 31, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($)$ / Warrantshares | Dec. 31, 2014EUR (€)shares | Dec. 31, 2013USD ($)shares | Mar. 31, 2015EUR (€)€ / Product$ / Product | Apr. 23, 2012EUR (€) |
Commitments And Contingencies [Line Items] | ||||||||||||||||
Finite Lived Intangible Assets Amortization Expense Years Two And Three | $ 210,000 | $ 210,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 352,519 | 352,519 | 237,315 | |||||||||||||
Other Assets, Noncurrent | 1,631,000 | $ 1,684,000 | $ 1,894,000 | |||||||||||||
Accumulated Amortization of Other Deferred Costs | 619,000 | 566,000 | ||||||||||||||
Amortization of Other Deferred Charges | $ 52,000 | $ 52,000 | $ 158,000 | $ 210,000 | 214,000 | |||||||||||
Royalty rate | 3.00% | 3.00% | 3.00% | 3.00% | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | 12.00% | |||||||||||||
Annual Minimum Amount | $ 1,085,000 | € 1,000,000 | ||||||||||||||
Operating Lease Monthly Rent Expense | 8,000 | |||||||||||||||
Operating Lease Monthly Rent Expense Renewal Amount | $ 8,800 | |||||||||||||||
Lease Extension Term | 6 months | 6 months | ||||||||||||||
Interest Expense, Lessee, Assets under Capital Lease | $ 600 | € 500 | ||||||||||||||
Operating Leases, Rent Expense | $ 117,000 | $ 116,000 | ||||||||||||||
Notice Period On Lease Agreement | 2 months | 2 months | ||||||||||||||
Operating Lease Expiration Date | Nov. 30, 2015 | Nov. 30, 2014 | ||||||||||||||
Sales Revenue, Goods, Net, Total | 527,000 | 219,000 | $ 914,000 | $ 1,029,000 | ||||||||||||
Cost of Goods Sold, Total | $ 262,000 | $ 106,000 | $ 549,000 | $ 898,000 | ||||||||||||
Bellco [Member] | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Number of units under first tier royalty receivable | 125,000 | 125,000 | 125,000 | |||||||||||||
First tier royalty per unit | 1.90 | 2.40 | 1.90 | |||||||||||||
Second tier royalty per unit | 1.36 | 1.71 | 1.36 | |||||||||||||
Upfront Fees And Connection Of First Amendment | $ 612,000 | € 450,000 | $ 612,000 | € 450,000 | ||||||||||||
Medica Spa [Member] | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Purchase Obligation, Due in Next Twelve Months | $ 400,000 | € 300,000 | ||||||||||||||
Purchase Obligation, Due in Second Year | 700,000 | 500,000 | ||||||||||||||
Purchase Obligation, Due in Third Year | 880,000 | € 750,000 | ||||||||||||||
License Agreement Payment | 2,000,000 | 1,500,000 | 2,000,000 | 1,500,000 | ||||||||||||
Long-term Purchase Commitment, Amount | $ 265,000 | € 243,000 | $ 900,000 | € 766,000 | ||||||||||||
Payments for Royalties | $ 800,000 | € 600,000 | $ 500,000 | € 400,000 | $ 700,000 | € 500,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 300,000 | 300,000 | 300,000 | 300,000 | ||||||||||||
Share Based Goods And Nonemployee Services Transaction Fair Market Value Of Options Granted | $ 273,000 | $ 273,000 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - Entity [Domain] | May. 12, 2015USD ($)$ / sharesshares | May. 04, 2015USD ($) | Apr. 15, 2015USD ($)$ / sharesshares | Dec. 18, 2014USD ($) | Mar. 21, 2014shares | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | May. 04, 2015EUR (€) | Mar. 31, 2015EUR (€) | Nov. 10, 2014$ / shares | Feb. 14, 2014$ / shares | May. 17, 2013$ / shares |
Subsequent Event [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 352,519 | 237,315 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 1.11 | $ 1.46 | ||||||||||||
Annual Minimum Amount | $ 1,085,000 | € 1,000,000 | ||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 7,140,823 | 36,570 | ||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 3,000,000 | $ 0 | $ 2,016,000 | $ 4,866,000 | $ 2,771,000 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.33 | $ 0.45 | $ 0.60 | $ 0.30 | $ 0.60 | |||||||||
Subsequent Event [Member] | Employment Agreement [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ | $ 240,000 | |||||||||||||
Deferred Compensation Arrangements, Overall, Description | four-year term expiring on April 14, 2019 (the “Term”), unless sooner terminated by either party. Pursuant to the Employment Agreement, Mr. Evans will receive an initial annualized base salary of $240,000 and will be eligible to receive an annual performance bonus of up to 30% of his annualized base salary | |||||||||||||
Subsequent Event [Member] | Employment Agreement [Member] | 2015 Equity Incentive Plan [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Granted Weighted Average Contractual Term | 10 years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 2,184,193 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0.60 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 50% of the options will vest upon the achievement of annual revenue targets of $3,000,000, $6,000,000 and $10,000,000; 15% of the options will vest upon the Company listing on a national securities exchange; and 35% of the options will vest over four years in 16 equal, quarterly installments. | |||||||||||||
Subsequent Event [Member] | Second Amendment [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Annual Minimum Amount | $ 1,085,000 | € 1,000,000 | ||||||||||||
Royalty Agreement Commitments Description | the Company and Medica agreed that Italy will continue to be excluded from the worldwide license, and that, until December 31, 2022, the Company will pay Medica a royalty of 3% of net sales, in addition to any other payments required, except that if the Company sublicenses to a third party the right to market and sell its HydraGuard products, the Company will pay Medica a fee of €2.00 (approximately $2.17) per HydraGuard unit in lieu of the 3% royalty. | |||||||||||||
Subsequent Event [Member] | Purchase Agreement [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Warrants To Purchase Common Stock | shares | 900,000 | |||||||||||||
Warrants Exercisable Term | 5 years | |||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 1,800,000 | |||||||||||||
Sale of Stock, Price Per Share | $ 0.67 | |||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 1,200,000 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.85 |