Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 04, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | NEPHROS INC | |
Entity Central Index Key | 1,196,298 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | NEPH | |
Entity Common Stock, Shares Outstanding | 45,025,803 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 1,813 | $ 1,284 |
Accounts receivable, net | 216 | 110 |
Inventory, net | 665 | 186 |
Prepaid expenses and other current assets | 85 | 104 |
Total current assets | 2,779 | 1,684 |
Property and equipment, net | 0 | 1 |
Other assets, net of accumulated amortization | 1,526 | 1,684 |
Total assets | 4,305 | 3,369 |
Current liabilities: | ||
Accounts payable | 924 | 835 |
Accrued expenses | 154 | 342 |
Deferred revenue, current portion | 70 | 70 |
Total current liabilities | 1,148 | 1,247 |
Warrant liability | 0 | 7,386 |
Long-term portion of deferred revenue | 365 | 417 |
Total liabilities | $ 1,513 | $ 9,050 |
Commitments and Contingencies | ||
Stockholders’ equity (deficit): | ||
Preferred stock, $.001 par value; 5,000,000 shares authorized at September 30, 2015 and December 31, 2014; no shares issued and outstanding at September 30, 2015 and December 31, 2014 | $ 0 | $ 0 |
Common stock, $.001 par value; 90,000,000 shares authorized at September 30, 2015 and December 31, 2014; 45,025,803 and 30,391,513 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 45 | 30 |
Additional paid-in capital | 118,993 | 108,382 |
Accumulated other comprehensive income | 72 | 72 |
Accumulated deficit | (116,318) | (114,165) |
Total stockholders’ equity (deficit) | 2,792 | (5,681) |
Total liabilities and stockholders’ equity (deficit) | $ 4,305 | $ 3,369 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 45,025,803 | 30,391,513 |
Common stock, shares outstanding | 45,025,803 | 30,391,513 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net revenues: | ||||
Product revenues | $ 274 | $ 298 | $ 1,323 | $ 765 |
License and royalty revenues | 46 | 193 | 110 | 641 |
Total net revenues | 320 | 491 | 1,433 | 1,406 |
Cost of goods sold | 154 | 175 | 626 | 423 |
Gross margin | 166 | 316 | 807 | 983 |
Operating expenses: | ||||
Research and development | 226 | 178 | 582 | 521 |
Depreciation and amortization | 53 | 54 | 159 | 164 |
Selling, general and administrative | 974 | 765 | 2,551 | 2,177 |
Total operating expenses | 1,253 | 997 | 3,292 | 2,862 |
Loss from operations | (1,087) | (681) | (2,485) | (1,879) |
Change in fair value of warrant liability | 2,287 | 3,428 | 2,099 | (4,007) |
Warrant modification expense | (1,761) | 0 | (1,761) | 0 |
Interest expense | (9) | (65) | (30) | (277) |
Other income (expense) | (11) | 41 | 24 | 36 |
Net income (loss) | (581) | 2,723 | (2,153) | (6,127) |
Other comprehensive income (loss), foreign currency translation adjustments | 1 | 1 | 0 | (1) |
Total comprehensive income (loss) | $ (580) | $ 2,724 | $ (2,153) | $ (6,128) |
Net income (loss) per common share, basic | $ (0.02) | $ 0.11 | $ (0.07) | $ (0.27) |
Net loss per common share, diluted | $ (0.02) | $ (0.02) | $ (0.07) | $ (0.27) |
Weighted average common shares outstanding, basic | 32,622,377 | 25,238,412 | 31,366,292 | 23,094,457 |
Weighted average common shares outstanding, diluted | 32,622,377 | 33,491,189 | 31,366,292 | 23,094,457 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2014 | $ (5,681) | $ 30 | $ 108,382 | $ 72 | $ (114,165) |
Balance, shares at Dec. 31, 2014 | 30,391,513 | ||||
Net loss | (2,153) | (2,153) | |||
Issuance of common stock, net of equity issuance costs of $24 | 1,205 | $ 2 | 1,203 | ||
Issuance of common stock, net of equity issuance costs of $24 (in Shares) | 1,834,299 | ||||
Issuance of common stock, net of commitment fee of $135 | 163 | $ 1 | 162 | ||
Issuance of common stock, net of commitment fee of $135 (in shares) | 550,000 | ||||
Issuance of restricted stock | 174 | 174 | |||
Issuance of restricted stock (in shares) | 389,151 | ||||
Issuance of restricted stock to vendor | $ 57 | 57 | |||
Issuance of restricted stock to vendor (in shares) | 47,382 | 116,613 | |||
Exercise of warrants | $ 8,811 | $ 12 | 8,799 | ||
Exercise of warrants, shares | 11,744,227 | ||||
Noncash stock-based compensation | 216 | 216 | |||
Balance at Sep. 30, 2015 | $ 2,792 | $ 45 | $ 118,993 | $ 72 | $ (116,318) |
Balance, shares at Sep. 30, 2015 | 45,025,803 |
CONSOLIDATED STATEMENT OF CHAN6
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Payments of Stock Issuance Costs | $ 24 |
Commitment Fee | $ 135 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities: | ||
Net loss | $ (2,153) | $ (6,127) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation of property and equipment | 1 | 6 |
Amortization of other assets | 158 | 158 |
Noncash stock-based compensation, including stock options and restricted stock | 216 | 321 |
Shares issued for services rendered to vendors | 47 | 0 |
Change in fair value of warrant liability | (2,099) | 4,007 |
Warrant Modification | 1,761 | 0 |
Amortization of debt discount | 0 | 173 |
Allowance for doubtful accounts | 13 | |
Inventory reserve | 0 | 31 |
(Gain)/loss on foreign currency transactions | 3 | (40) |
(Increase) decrease in operating assets: | ||
Accounts receivable | (119) | (57) |
Inventory | (479) | 24 |
Prepaid expenses and other current assets | 56 | 92 |
Increase (decrease) in operating liabilities: | ||
Accounts payable | 86 | (125) |
Accrued expenses | (14) | (104) |
Deferred revenue | (52) | (23) |
Net cash used in operating activities | (2,575) | (1,664) |
Financing activities: | ||
Proceeds from issuance of common stock | 1,340 | 2,013 |
Proceeds from senior secured note | 0 | 1,610 |
Proceeds from exercise of warrants | 1,762 | 11 |
Payment of senior secured note | 0 | (1,500) |
Net cash provided by financing activities | 3,102 | 2,134 |
Effect of exchange rates on cash and cash equivalents | 2 | (2) |
Net increase in cash | 529 | 468 |
Cash, beginning of period | 1,284 | 579 |
Cash, end of period | 1,813 | 1,047 |
Supplemental disclosure of cash flow information | ||
Cash paid for income taxes | 3 | 6 |
Cash paid for interest | 34 | 70 |
Supplemental disclosure of noncash financing activity | ||
Issuance of common stock as commitment fee, net of amortization | 27 | 0 |
Issuance of restricted stock for future services to be provided | 10 | 0 |
Restricted stock issued to settle liability | $ 174 | $ 0 |
Organization and Nature of Oper
Organization and Nature of Operations | 9 Months Ended |
Sep. 30, 2015 | |
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 OLpūr mid-dilution HDF filter or “dialyzer,” designed expressly for HDF therapy, and the OLpūr H2H HDF module, an add-on module designed to allow the most common types of hemodialysis machines to be used for HDF therapy. In 2009, the Company introduced its Dual Stage Ultrafilter (“DSU”) water filter, which represented a new and complementary product line to the Company’s ESRD therapy business. The DSU incorporates the Company’s unique and proprietary dual stage filter architecture. On June 4, 2003, Nephros International Limited was incorporated under the laws of Ireland as a wholly-owned subsidiary of the Company. In August 2003, the Company established a European Customer Service and financial operations center in Dublin, Ireland. |
Basis of Presentation and Going
Basis of Presentation and Going Concern | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Going Concern | Note 2 - Basis of Presentation and Going Concern 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 Annual Report on Form 10-K for the year ended December 31, 2014 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 lives of fixed assets and intangible assets, and assumptions used in determining stock compensation such as expected volatility and risk-free interest rate. 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. On September 29, 2015, the Company issued 11,742,100 1.76 0.15 On July 24, 2015, the Company entered into a purchase agreement (the “Purchase Agreement”), together with a registration rights agreement (the “Registration Rights Agreement”), with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to which the Company has the right to sell to Lincoln Park up to $ 5 250,000 300,000 0.45 135,000 On May 18, 2015, the Company raised gross proceeds of $ 1.23 1,834,299 0.67 0.85 There can be no assurance that the Company’s future cash flow will be sufficient to meet its obligations and commitments. If the Company is unable to generate sufficient cash flow from operations in the future to service its commitments, the Company will be required to adopt alternatives, such as seeking to raise debt or equity capital, curtailing its planned activities or ceasing its operations. There can be no assurance that any such actions could be effected on a timely basis or on satisfactory terms or at all, or that these actions would enable the Company to continue to satisfy its capital requirements. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2015 | |
Concentration Of Credit Risk [Abstract] | |
Concentration of Credit Risk | Note 3 - Concentration of Credit Risk Customer 2015 2014 A 25 % 25 % B 21 % - % C 13 % 9 % D 4 % 46 % Customer 2015 2014 A 44 % 22 % B 13 % 25 % C 1 % 35 % |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 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 September 30, 2015 condensed consolidated balance sheet is approximately $435,000 and is related to the Company’s License Agreement with Bellco (see Note 11), which is being deferred over the remainder of the expected obligation period. The Company has recognized approximately $ 2,641,000 641,000 Approximately $17,000 of revenue will be recognized in the remaining three months of fiscal year 2015 and approximately $70,000 of revenue will be recognized in each of the years ended December 31, 2016 through 2021. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
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 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 Company had outstanding warrants originally issued in 2007 (the “2007 Warrants”) that were accounted for as a derivative liability until September 29, 2015 as they were fully exercised on this date. The 2007 warrants were classified as a liability because the transactions that would trigger the anti-dilution adjustment provision in the 2007 Warrants were not inputs to the fair value of the warrants. The 2007 Warrants were 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 utilized a binomial options pricing model to value the 2007 Warrants at each reporting period. The estimated fair value of the 2007 Warrants as of September 29, 2015 and December 31, 2014 was 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. On the condensed consolidated statement of operations for the three month periods ended September 30, 2015 and 2014, the Company recorded income of approximately approximately approximately approximately September 29, December 31, 2015 2014 Calculated aggregate value $ 5,287 $ 7,386 Weighted average exercise price $ 0.30 $ 0.30 Closing price per share of common stock $ 0.40 $ 0.79 Volatility 137 % 136.9 % Weighted average remaining expected life (years) 4.2 5.0 Risk-free interest rate 1.4 % 1.6 % Dividend yield - - On September 29, 2015, the Company entered into a Warrant Amendment and Exercise Agreement (the “Amendment”) with Lambda Investors, LLC (“Lambda”). Pursuant to the Amendment, the Company agreed to reduce the current exercise price of the 2007 Warrants by 50 0.15 11,742,100 1.76 7,048,000 1,761,000 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
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 that vest upon service conditions is amortized over the vesting period of the award using the straight-line method. For stock awards that vest based on performance conditions (e.g. achievement of certain milestones), expense is recognized when it is probable that the condition will be met. The Company granted stock options 2,496,848 shares of common stock 1,310,000 Assumptions for Option Grants Nine Months Stock Price Volatility 122.8 % Risk-Free Interest Rates 1.55 % Expected Life (in years) 6.15 Expected Dividend Yield - % 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 $ 205,000 318,000 189,000 15,000 302,000 16,000 There was no tax benefit related to expense recognized in the nine months ended September 30, 2015 and 2014, as the Company is in a net operating loss position. As of September 30, 2015, there was approximately $ 1,166,000 Approximately $ 158,000 1,008,000 3.7 9 32 24 23 8 4 Restricted Stock On September 9, 2015, the Company issued 389,151 195,000 174 21 On September 25, 2015, the Company issued 47,382 22,000 12,000 On July 9, 2015, the Company issued 69,231 with a grant date fair value of 45,000 10,000 Total stock-based compensation expense for the restricted stock grants was approximately $ 11,000 3,000 9,000 19,000 |
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2015 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Note 7 - Warrants In addition to the Lambda warrants exercised and discussed in Note 5, for the nine months ended September 30, 2015, 2,127 851 |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 9 Months Ended |
Sep. 30, 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 stockholders stockholders For the three months For the nine months September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Income (Loss) per share - Basic: Numerator for basic income (loss) per share $ (581,000) $ 2,723,000 $ (2,153,000) $ (6,127,000) Denominator for basic income (loss) per share 32,622,377 25,238,412 31,366,292 23,094,457 Basic income (loss) per common share $ (0.02) $ 0.11 $ (0.07) $ (0.27) Income (Loss) per share - Diluted: Numerator for diluted income (loss) per share $ (581,000) $ 2,723,000 $ (2,153,000) $ (6,127,000) Adjust: Change in fair value of dilutive warrants outstanding - (3,428,000) - - Numerator for diluted income (loss) per share $ (581,000) $ (705,000) $ (2,153,000) $ (6,127,000) Denominator for basic income (loss) per share 32,622,377 25,238,412 31,366,292 23,094,457 Plus: Incremental shares underlying warrants outstanding - 8,252,777 - - Denominator for diluted income (loss) per share 32,622,377 33,491,189 31,366,292 23,094,457 Diluted income (loss) per common share $ (0.02) $ (0.02) $ (0.07) $ (0.27) September 30, 2015 2014 Shares underlying warrants outstanding 5,925,836 16,793,301 Shares underlying options outstanding 3,888,657 2,424,612 Unvested restricted stock 436,333 - In addition, pursuant to the Amendment with Lambda (see Note 5), the Company committed to initiating tender offers to the holders of all of its remaining outstanding warrants pursuant to which it would offer such holders the right to exercise their respective warrants at a 50% 0.40 0.85 1.39 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 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. In July 2015, the FASB approved a one-year deferral of the effective date of the new standard, making it effective for annual and interim reporting periods beginning January 1, 2018. Early adoption is permitted, but not before the original effective date for public companies (annual reporting periods beginning after December 15, 2016). 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 has not yet determined the impact, if any, of the adoption of ASU 2014-15 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. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory (Subtopic 2015-11).” ASU 2015-11 requires inventory be measured at the lower of cost and net realizable value, and methods for valuing inventory that consider market value will be eliminated. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for reporting periods beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. ASU 2015-11 should be applied prospectively. The Company has not yet determined the impact, if any, the adoption of ASU 2015-11 might have on its consolidated financial statements. |
Inventory, net
Inventory, net | 9 Months Ended |
Sep. 30, 2015 | |
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. September 30, 2015 December 31, 2014 (Unaudited) (Audited) Total Gross Inventory, Finished Goods $ 717,000 $ 297,000 Less: Inventory reserve (52,000) (111,000) Total Inventory $ 665,000 $ 186,000 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 - Commitments and Contingencies Manufacturing and Suppliers The Company does not 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. (“Bellco”), 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 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 pays 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 1.25 58,000 29,000 29,000 450,000 612,000 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, 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 € 300,000 500,000 750,000 973,000 1,000,000 1,500,000 500,000 700,000 600,000 800,000 400,000 500,000 As further consideration for the license and other rights granted to the Company, the Company granted Medica options to purchase 300,000 273,000 1,526,000 724,000 53,000 210,000 3 The Company has an understanding with Medica whereby the Company has agreed to pay interest to Medica at a 12% annual rate calculated on the principal amount of any outstanding invoices that are not paid pursuant to the original payment terms. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | July 2015 Purchase Agreement and Registration Rights Agreement On July 24, 2015, the Company entered into a Purchase Agreement, together with a Registration Rights Agreement, with Lincoln Park, an Illinois limited liability company. Under the terms and subject to the conditions of the Purchase Agreement, the Company has the right to sell to and Lincoln Park is obligated to purchase up to $ 10.0 9.99 In connection with the Purchase Agreement, the Company issued to Lincoln Park 250,000 163,000 300,000 0.45 135,000 135,000 163,000 The Purchase Agreement and the Registration Rights Agreement contain customary representations, warranties, agreements and conditions to completing future sale transactions, indemnification rights and obligations of the parties. The Company has the right to terminate the Purchase Agreement at any time, at no cost or penalty. Actual sales of shares of common stock to Lincoln Park under the Purchase Agreement will depend on a variety of factors to be determined by the Company from time to time, including, among others, market conditions, the trading price of the common stock and determinations by the Company as to the appropriate sources of funding for the Company and its operations. There are no trading volume requirements or restrictions under the Purchase Agreement. Lincoln Park has no right to require any sales by the Company, but is obligated to make purchases from the Company as it directs in accordance with the Purchase Agreement. Lincoln Park has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of Company shares. Proactive Capital Resources Group In July 2015, 69,231 shares of restricted stock, with a fair value of approximately $ 45,000 35,000 10,000 May 2015 Private Placement On May 18, 2015, the Company raised gross proceeds of $ 1.23 1,834,299 0.67 0.85 1,205,000 |
Basis of Presentation and Goi20
Basis of Presentation and Going Concern (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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 Annual Report on Form 10-K for the year ended December 31, 2014 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. 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 lives 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 | 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. On September 29, 2015, the Company issued 11,742,100 1.76 0.15 On July 24, 2015, the Company entered into a purchase agreement (the “Purchase Agreement”), together with a registration rights agreement (the “Registration Rights Agreement”), with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to which the Company has the right to sell to Lincoln Park up to $ 5 250,000 300,000 0.45 135,000 On May 18, 2015, the Company raised gross proceeds of $ 1.23 1,834,299 0.67 0.85 There can be no assurance that the Company’s future cash flow will be sufficient to meet its obligations and commitments. If the Company is unable to generate sufficient cash flow from operations in the future to service its commitments, the Company will be required to adopt alternatives, such as seeking to raise debt or equity capital, curtailing its planned activities or ceasing its operations. There can be no assurance that any such actions could be effected on a timely basis or on satisfactory terms or at all, or that these actions would enable the Company to continue to satisfy its capital requirements. |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Sales Revenue [Member] | |
Concentration Risk [Line Items] | |
Schedules Of Concentration Of Risk, By Risk Factor | For the nine months ended September 30, 2015 and 2014, the following customers accounted for the following percentages of the Company’s revenues, respectively. Customer 2015 2014 A 25 % 25 % B 21 % - % C 13 % 9 % D 4 % 46 % |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Schedules Of Concentration Of Risk, By Risk Factor | As of September 30, 2015 and December 31, 2014, the following customers accounted for the following percentages of the Company’s accounts receivable, respectively. Customer 2015 2014 A 44 % 22 % B 13 % 25 % C 1 % 35 % |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Inputs, Liabilities, Quantitative Information | September 29, December 31, 2015 2014 Calculated aggregate value $ 5,287 $ 7,386 Weighted average exercise price $ 0.30 $ 0.30 Closing price per share of common stock $ 0.40 $ 0.79 Volatility 137 % 136.9 % Weighted average remaining expected life (years) 4.2 5.0 Risk-free interest rate 1.4 % 1.6 % Dividend yield - - |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Share-based Compensation [Abstract] | |
Schedule Of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following assumptions were used for options granted for the nine months ended September 30, 2015: Assumptions for Option Grants Nine Months Stock Price Volatility 122.8 % Risk-Free Interest Rates 1.55 % Expected Life (in years) 6.15 Expected Dividend Yield - % |
Net Income (Loss) per Common 24
Net Income (Loss) per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 For the nine months September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Income (Loss) per share - Basic: Numerator for basic income (loss) per share $ (581,000) $ 2,723,000 $ (2,153,000) $ (6,127,000) Denominator for basic income (loss) per share 32,622,377 25,238,412 31,366,292 23,094,457 Basic income (loss) per common share $ (0.02) $ 0.11 $ (0.07) $ (0.27) Income (Loss) per share - Diluted: Numerator for diluted income (loss) per share $ (581,000) $ 2,723,000 $ (2,153,000) $ (6,127,000) Adjust: Change in fair value of dilutive warrants outstanding - (3,428,000) - - Numerator for diluted income (loss) per share $ (581,000) $ (705,000) $ (2,153,000) $ (6,127,000) Denominator for basic income (loss) per share 32,622,377 25,238,412 31,366,292 23,094,457 Plus: Incremental shares underlying warrants outstanding - 8,252,777 - - Denominator for diluted income (loss) per share 32,622,377 33,491,189 31,366,292 23,094,457 Diluted income (loss) per common share $ (0.02) $ (0.02) $ (0.07) $ (0.27) |
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: September 30, 2015 2014 Shares underlying warrants outstanding 5,925,836 16,793,301 Shares underlying options outstanding 3,888,657 2,424,612 Unvested restricted stock 436,333 - |
Inventory, net (Tables)
Inventory, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The Company’s inventory as of September 30, 2015 and December 31, 2014 was as follows: September 30, 2015 December 31, 2014 (Unaudited) (Audited) Total Gross Inventory, Finished Goods $ 717,000 $ 297,000 Less: Inventory reserve (52,000) (111,000) Total Inventory $ 665,000 $ 186,000 |
Basis of Presentation and Goi26
Basis of Presentation and Going Concern (Details Textual) - USD ($) | Jul. 09, 2015 | Sep. 30, 2015 | Sep. 29, 2015 | Jul. 24, 2015 | May. 18, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Basis Of Presentation And Going Concern [Line Items] | |||||||
Proceeds from Issuance of Common Stock | $ 1,230,000 | $ 1,340,000 | $ 2,013,000 | ||||
Sale of Stock, Description of Transaction | 0.67 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.85 | ||||||
Proceeds from Warrant Exercises | $ 1,762,000 | $ 11,000 | |||||
Lincoln Park Capital Fund Llc [Member] | |||||||
Basis Of Presentation And Going Concern [Line Items] | |||||||
Proceeds from Issuance of Common Stock | $ 135,000 | ||||||
Stock Issued During Period, Shares, New Issues | 300,000 | ||||||
Stock Issued During Period, Shares, Other | 250,000 | 250,000 | |||||
Registration Rights Agreement Maximum SharesAvailable For Grant Value | $ 5,000,000 | ||||||
Share Price | $ 0.45 | $ 0.45 | |||||
Warrant [Member] | |||||||
Basis Of Presentation And Going Concern [Line Items] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.15 | ||||||
Stock Issued During Period, Shares, Other | 11,742,100 | ||||||
Proceeds from Warrant Exercises | $ 1,760,000 | ||||||
Private Placement [Member] | |||||||
Basis Of Presentation And Going Concern [Line Items] | |||||||
Proceeds from Issuance of Common Stock | $ 1,230,000 | ||||||
Stock Issued During Period, Shares, New Issues | 1,834,299 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.85 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Sales Revenue [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 25.00% | 25.00% | |
Sales Revenue [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 21.00% | 0.00% | |
Sales Revenue [Member] | Customer C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 9.00% | |
Sales Revenue [Member] | Customer D [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 4.00% | 46.00% | |
Accounts Receivable [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 44.00% | 22.00% | |
Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 25.00% | |
Accounts Receivable [Member] | Customer C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 1.00% | 35.00% |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Bellco [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Revenue recognized | $ 2,641,000 | |
License Agreement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | $ 435,000 | |
Deferred Revenue, Description | Approximately $17,000 of revenue will be recognized in the remaining three months of fiscal year 2015 and approximately $70,000 of revenue will be recognized in each of the years ended December 31, 2016 through 2021. | |
License Agreement [Member] | Bellco [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Revenue recognized | $ 641,000 | |
Deferred Revenue | $ 52,000 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 29, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Calculated aggregate value | $ 5,287 | $ 7,386 |
Weighted average exercise price | $ 0.30 | $ 0.3 |
Closing price per share of common stock | $ 0.40 | $ 0.79 |
Volatility | 137.00% | 136.90% |
Weighted average remaining expected life (years) | 4 years 2 months 12 days | 5 years |
Risk-free interest rate | 1.40% | 1.60% |
Dividend yield | 0.00% | 0.00% |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | May. 18, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Line Items] | |||||||
Amount of dilutive securities effect on earnings per share warrants | $ 2,287,000 | $ 3,428,000 | $ (2,099,000) | $ 4,007,000 | |||
Warrant Liability | $ 5,287,000 | 0 | 0 | $ 7,386,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.85 | ||||||
Proceeds from Warrant Exercises | 1,762,000 | $ 11,000 | |||||
2007 Warrant [Member] | |||||||
Fair Value Disclosures [Line Items] | |||||||
Reduced Percentage of Warrant Excersize Price | 50.00% | ||||||
Warrant Inducement | $ 1,761,000 | $ 1,761,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.15 | ||||||
Stock Issued During Period, Shares, Other | 11,742,100 | ||||||
Proceeds from Warrant Exercises | $ 1,760,000 | ||||||
Warrants and Rights Outstanding | $ 7,048,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Price Volatility | 122.80% |
Risk-Free Interest Rates | 1.55% |
Expected Life (in years) | 6 years 1 month 24 days |
Expected Dividend Yield | 0.00% |
Stock-Based Compensation (Det32
Stock-Based Compensation (Details Textual) - USD ($) | Sep. 09, 2015 | Jul. 09, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 205,000 | $ 318,000 | |||
Shares, Options granted | 195,000 | 2,496,848 | |||
Stock Granted, Value, Share-based Compensation, Gross | $ 1,310,000 | ||||
Unrecognized compensation cost related to non-vested options | $ 1,166,000 | $ 1,166,000 | |||
Weighted average remaining requisite service period for unrecognized compensation cost | 3 years 8 months 12 days | ||||
Noncash stock-based compensation, including stock options and restricted stock | $ 216,000 | 321,000 | |||
Share-based Compensation, Total | $ 11,000 | 3,000 | |||
Expected recognition of unrecognized compensation costs due in current year | 9.00% | ||||
Expected recognition of unrecognized compensation costs due in one year | 32.00% | ||||
Expected recognition of unrecognized compensation costs due in two years | 24.00% | ||||
Expected recognition of unrecognized compensation costs due in three years | 23.00% | ||||
Expected recognition of unrecognized compensation costs due in fourth years | 8.00% | ||||
Expected recognition of unrecognized compensation costs due in fifth years | 4.00% | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 158,000 | ||||
Stock Based Compensation Recognized Amortization Cost | $ 1,008,000 | ||||
Stock Issued During Period, Shares, Acquisitions | 69,231 | 69,231 | |||
Stock Issued During Period, Value, Acquisitions | $ 45,000 | $ 45,000 | |||
Restricted Stock Fair Value | 45,000 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 389,151 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 2,000 | $ 174,000 | |||
Stock Issued During Period Share Restricted Stock To Vendor | 47,382 | ||||
Scenario, Forecast [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 21,000 | ||||
Lincoln Park Capital Fund Llc [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock Fair Value | $ 45,000 | ||||
Prepaid Expense, Current, Total | 10,000 | $ 10,000 | |||
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 | 189,000 | 302,000 | |||
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 | 15,000 | $ 16,000 | |||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 0 | ||||
Shares, Options granted | 9,000 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 19,000 | ||||
Restricted Stock Grand Date Fair Value | 22,000 | ||||
Restricted Stock [Member] | Selling, General and Administrative Expenses [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 12,000 |
Warrants (Details Textual)
Warrants (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Warrants [Line Items] | ||
Proceeds from Warrant Exercises | $ 1,762,000 | $ 11,000 |
Lambda Investors LLC [Member] | ||
Warrants [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,127 | |
Proceeds from Warrant Exercises | $ 851 |
Net Income (Loss) per Common 34
Net Income (Loss) per Common Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income (Loss) per share - Basic: | ||||
Numerator for basic income (loss) per share | $ (581,000) | $ 2,723,000 | $ (2,153,000) | $ (6,127,000) |
Denominator for basic income (loss) per share | 32,622,377 | 25,238,412 | 31,366,292 | 23,094,457 |
Basic income (loss) per common share | $ (0.02) | $ 0.11 | $ (0.07) | $ (0.27) |
Income (Loss) per share - Diluted: | ||||
Numerator for diluted income (loss) per share | $ (581,000) | $ 2,723,000 | $ (2,153,000) | $ (6,127,000) |
Adjust: Change in fair value of dilutive warrants outstanding | 0 | (3,428,000) | 0 | 0 |
Numerator for diluted income (loss) per share | $ (581,000) | $ (705,000) | $ (2,153,000) | $ (6,127,000) |
Denominator for basic income (loss) per share | 32,622,377 | 25,238,412 | 31,366,292 | 23,094,457 |
Plus: Incremental shares underlying warrants outstanding | 0 | 8,252,777 | 0 | 0 |
Denominator for diluted income (loss) per share | 32,622,377 | 33,491,189 | 31,366,292 | 23,094,457 |
Diluted income (loss) per common share | $ (0.02) | $ (0.02) | $ (0.07) | $ (0.27) |
Net Income (Loss) per Common 35
Net Income (Loss) per Common Share (Details 1) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 5,925,836 | 16,793,301 |
Unvested restricted stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 436,333 | 0 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 3,888,657 | 2,424,612 |
Net Income (Loss) per Common 36
Net Income (Loss) per Common Share (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 29, 2015 | May. 18, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.85 | ||
Proceeds from Issuance of Warrants | $ 1,390 | ||
Maximum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.85 | ||
Minimum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.40 | ||
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common Stock, Voting Rights | 50% | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.15 |
Inventory, net (Details)
Inventory, net (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Total Gross Inventory, Finished Goods | $ 717,000 | $ 297,000 |
Less: Inventory reserve | (52,000) | (111,000) |
Total Inventory | $ 665,000 | $ 186,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) | Sep. 09, 2015shares | Feb. 04, 2013USD ($) | Feb. 04, 2013EUR (€) | May. 23, 2013USD ($) | May. 23, 2013EUR (€) | Apr. 23, 2012USD ($) | Apr. 23, 2012EUR (€) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)shares | Sep. 30, 2015EUR (€)shares | Sep. 30, 2014USD ($) | Sep. 30, 2015EUR (€) | Sep. 30, 2015€ / Product | Sep. 30, 2015$ / Product | Sep. 30, 2015 | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) | Dec. 31, 2013USD ($) | Dec. 31, 2013EUR (€) | Dec. 31, 2012USD ($) | Dec. 31, 2012EUR (€) |
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Finite Lived Intangible Assets Amortization Expense Years Two And Three | $ 210,000 | $ 210,000 | |||||||||||||||||||
Other Assets, Noncurrent | 1,526,000 | 1,526,000 | $ 1,684,000 | ||||||||||||||||||
Accumulated Amortization of Other Deferred Costs | 724,000 | $ 724,000 | |||||||||||||||||||
Amortization of Other Deferred Charges | 53,000 | $ 158,000 | |||||||||||||||||||
Royalty rate | 3.00% | 3.00% | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 195,000 | 2,496,848 | 2,496,848 | ||||||||||||||||||
Annual Minimum Amount | 1,120,000 | $ 1,120,000 | € 1,000,000 | ||||||||||||||||||
Royalty Receivable | $ 29,000 | 29,000 | |||||||||||||||||||
Cash Received Fom Royalty | 29,000 | ||||||||||||||||||||
Royalty Revenue, Total | $ 58,000 | ||||||||||||||||||||
Bellco [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Number of units under first tier royalty receivable | 125,000 | 125,000 | |||||||||||||||||||
First tier royalty per unit | 1.75 | 1.95 | |||||||||||||||||||
Second tier royalty per unit | 1.25 | 1.40 | |||||||||||||||||||
Upfront Fees And Connection Of First Amendment | $ 612,000 | € 450,000 | |||||||||||||||||||
Medica Spa [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
License Agreement Payment | 2,000,000 | 1,500,000 | |||||||||||||||||||
Long-term Purchase Commitment, Amount | 1,089,000 | € 973,000 | |||||||||||||||||||
Payments for Royalties | $ 800,000 | € 600,000 | $ 500,000 | € 400,000 | $ 700,000 | € 500,000 | |||||||||||||||
Share Based Goods And Nonemployee Services Transaction Fair Market Value Of Options Granted | $ 273,000 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 300,000 | 300,000 | |||||||||||||||||||
Purchase Obligation, Total | $ 880,000 | € 750,000 | $ 700,000 | € 500,000 | $ 400,000 | € 300,000 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Details Textual) - USD ($) | Jul. 09, 2015 | Sep. 30, 2015 | Jul. 24, 2015 | May. 18, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Class of Stock [Line Items] | |||||||
Proceeds from Issuance of Common Stock | $ 1,230,000 | $ 1,340,000 | $ 2,013,000 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.85 | ||||||
Stock Issued During Period, Value, New Issues | 1,205,000 | ||||||
Additional Paid in Capital, Total | $ 118,993,000 | 118,993,000 | $ 108,382,000 | ||||
Stock Issued During Period, Value, Acquisitions | $ 45,000 | $ 45,000 | |||||
Stock Issued During Period, Shares, Acquisitions | 69,231 | 69,231 | |||||
Payments of Stock Issuance Costs | $ 24,000 | ||||||
Restricted Stock Fair Value | $ 45,000 | ||||||
Private Placement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 1,834,299 | ||||||
Proceeds from Issuance of Common Stock | $ 1,230,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.85 | ||||||
Net Proceeds from Issuance Of Common Stock | $ 1,205,000 | ||||||
Shares Issued, Price Per Share | $ 0.67 | ||||||
Lincoln Park Capital Fund Llc [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 300,000 | ||||||
Proceeds from Issuance of Common Stock | $ 135,000 | ||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 9.99% | ||||||
Limited Liability Company Description For Purchase Shares Level | direct Lincoln Park, at its sole discretion and subject to certain conditions, to purchase up to 100,000 shares of common stock on any business day, provided that at least one business day has passed since the most recent purchase, increasing to up to 200,000 shares depending upon the closing sale price of the common stock | ||||||
Limited Liability Company Description For Regular Purchase | Regular Purchase be more than $500,000. | ||||||
Stock Issued During Period, Shares, Other | 250,000 | 250,000 | |||||
Stock Issued During Period, Value, New Issues | $ 10,000,000 | ||||||
Fair Value of Stock Issued as Commitment Fee | $ 163,000 | ||||||
Amortized Commitment Fee | 163,000 | ||||||
Additional Paid in Capital, Total | $ 135,000 | $ 135,000 | |||||
Share Price | $ 0.45 | $ 0.45 | |||||
Payments of Stock Issuance Costs | $ 35,000 | ||||||
Prepaid Expense, Current, Total | $ 10,000 | $ 10,000 | |||||
Restricted Stock Fair Value | $ 45,000 |