Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NEPHROS INC | |
Entity Central Index Key | 1,196,298 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 48,825,461 | |
Trading Symbol | NEPH | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 701 | $ 1,248 |
Accounts receivable, net | 569 | $ 397 |
Investment in lease, net – current portion | 22 | |
Inventory, net | 476 | $ 591 |
Prepaid expenses and other current assets | 105 | 228 |
Total current assets | 1,873 | 2,464 |
Property and equipment, net | 41 | $ 12 |
Investment in lease, net – less current portion | 71 | |
Other assets, net | 1,442 | $ 1,494 |
Total assets | 3,427 | 3,970 |
Current liabilities: | ||
Accounts payable | 744 | 652 |
Accrued expenses | 290 | 237 |
Deferred revenue, current portion | 70 | 70 |
Total current liabilities | 1,104 | 959 |
Long-term portion of deferred revenue | 330 | 347 |
Total liabilities | $ 1,434 | $ 1,306 |
Commitments and Contingencies | ||
Stockholders’ equity | ||
Preferred stock, $.001 par value; 5,000,000 shares authorized at March 31, 2016 and December 31, 2015; no shares issued and outstanding at March 31, 2016 and December 31, 2015 | ||
Common stock, $.001 par value; 90,000,000 shares authorized at March 31, 2016 and December 31, 2015; 48,825,461 and 48,580,355 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively. | $ 49 | $ 49 |
Additional paid-in capital | 119,961 | 119,797 |
Accumulated other comprehensive income | 72 | 71 |
Accumulated deficit | (118,089) | (117,253) |
Total stockholders’ equity | 1,993 | 2,664 |
Total liabilities and stockholders’ equity | $ 3,427 | $ 3,970 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
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 | 48,825,461 | 48,580,355 |
Common stock, shares outstanding | 48,825,461 | 48,580,355 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net revenues: | ||
Product revenues | $ 545 | $ 527 |
License and royalty revenues | 45 | 17 |
Total net revenues | 590 | 544 |
Cost of goods sold | 295 | 262 |
Gross margin | 295 | 282 |
Operating expenses: | ||
Research and development | 269 | 192 |
Depreciation and amortization | 55 | 53 |
Selling, general and administrative | 777 | 843 |
Total operating expenses | 1,101 | 1,088 |
Loss from operations | $ (806) | (806) |
Change in fair value of warrant liability | 1,009 | |
Interest expense | $ (14) | $ (11) |
Interest income | 1 | |
Other income (expense) | (17) | $ 51 |
Net income (loss) | (836) | $ 243 |
Other comprehensive income, foreign currency translation adjustments | 1 | |
Total comprehensive income (loss) | $ (835) | $ 243 |
Net income (loss) per common share, basic | $ (0.02) | $ 0.01 |
Weighted average common shares outstanding, basic | 48,173,521 | 30,259,823 |
Net loss per common share, diluted | $ (0.02) | $ (0.02) |
Weighted average common shares outstanding, diluted | 48,173,521 | 37,082,499 |
Consolidated Statement of Chang
Consolidated Statement of Changes In Stockholders’ Equity (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2015 | $ 49 | $ 119,797 | $ 71 | $ (117,253) | $ 2,664 |
Balance, shares at Dec. 31, 2015 | 48,580,355 | ||||
Net loss | $ (836) | (836) | |||
Net unrealized gains on foreign currency translation, net of tax | $ 1 | 1 | |||
Issuance of restricted stock | $ 16 | 16 | |||
Issuance of restricted stock, shares | 244,200 | ||||
Exercise of warrants | 1 | 1 | |||
Exercise of warrants, Shares | 906 | ||||
Noncash stock-based compensation | 147 | 147 | |||
Balance at Mar. 31, 2016 | $ 49 | $ 119,961 | $ 72 | $ (118,089) | $ 1,993 |
Balance, shares at Mar. 31, 2016 | 48,825,461 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net income (loss) | $ (836) | $ 243 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation of property and equipment | 3 | 1 |
Amortization of other assets | 52 | 52 |
Non-cash stock-based compensation, including stock options and restricted stock | 127 | 26 |
Non-employee stock-based compensation | $ 20 | |
Change in fair value of warrant liability | $ (1,009) | |
Inventory reserve | $ 27 | |
Allowance for doubtful accounts reserve | 9 | |
(Gain)/loss on foreign currency transactions | 14 | $ (40) |
(Increase) decrease in operating assets: | ||
Accounts receivable | (181) | (224) |
Inventory | 106 | (22) |
Prepaid expenses and other current assets | 7 | 22 |
Increase (decrease) in operating liabilities: | ||
Accounts payable | 78 | (39) |
Accrued expenses | 69 | 90 |
Deferred revenue | (17) | (17) |
Net cash used in operating activities | (522) | $ (917) |
Investing activities: | ||
Purchase of property, plant and equipment | (26) | |
Net cash used in investing activities | (26) | |
Financing activities: | ||
Proceeds from exercise of warrants | 1 | $ 1 |
Net cash provided by financing activities | $ 1 | 1 |
Effect of exchange rates on cash | (1) | |
Net decrease in cash | $ (547) | (917) |
Cash, beginning of period | 1,248 | 1,284 |
Cash, end of period | 701 | 367 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 12 | $ 14 |
Cash paid for income taxes | 2 | |
Supplemental disclosure of noncash investing and financing activities | ||
Investment in lease receivable, net | 92 | |
Cost of equipment in direct financing lease | 92 | |
Restricted stock issued to settle liability | 16 | |
Reclassification of inventory from prepaid and other current assets | 18 | |
Reclassification of property, plant and equipment from prepaid and other current assets | $ 98 |
Organization and Nature of Oper
Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Note 1 - Organization and Nature of Operations Nephros, Inc. (collectively with subsidiary, 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 (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 Companys ESRD therapy business. The DSU incorporates the Companys 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 Nephros, Inc. 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 Companys corporate headquarters and research facilities. |
Basis of Presentation and Going
Basis of Presentation and Going Concern | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Going Concern | Note 2 - Basis of Presentation and Going Concern Interim Financial Information The accompanying unaudited condensed consolidated interim financial statements of Nephros, Inc. and its wholly owned subsidiary, Nephros International Limited should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Companys 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the SEC) on March 30, 2016. 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, 2015 was derived from the Companys 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. 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, assumptions used in determining stock compensation such as expected volatility and risk-free interest rate and the ability of the Company to continue as a going concern. Reclassifications Certain reclassifications were made to the prior years amounts to conform to the 2016 presentation. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Companys 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 Companys consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company has incurred significant losses in operations in each quarter and has not generated positive cash flow from operations since inception. To become profitable, the Company must increase revenue substantially and achieve and maintain income from operations. If the Company is not able to increase revenue and generate income from operations sufficiently to achieve profitability, its results from operations and its financial condition will be materially and adversely affected. Based on current cash flow projections, the Company expects that the proceeds from the Lambda Class D warrant exercise and the additional warrant exercises that resulted from the tender offer and the projected increases in product sales will allow the Company to fund its operations at least into the third quarter of 2016, depending on the timing and market up-take of the Companys new products. This assumption excludes the impact of future cash receipts from recurring operations. There can be no assurance that the Companys 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. |
Major Customers and Concentrati
Major Customers and Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Major Customers and Concentration of Credit Risk | Note 3 Major Customers and Concentration of Credit Risk For the three months ended March 31, 2016 and 2015, the following customers accounted for the following percentages of the Companys sales, respectively. Customer 2016 2015 A 42 % 28 % B 17 % 18 % C 11 % - % D 2 % 30 % As of March 31, 2016 and December 31, 2015, the following customers accounted for the following percentages of the Companys accounts receivable, respectively. Customer 2016 2015 A 51 % 37 % B 12 % 3 % C 11 % 11 % D 2 % 23 % The Company provides credit terms to customers in connection with purchases of the Companys products. Management periodically reviews customer account activity in order to assess the adequacy of the allowances provided for potential collection issues and returns. Adjustments, if any, are made to reserve balances following the completion of these reviews to reflect managements best estimate of potential losses. The allowance for doubtful accounts was approximately $24,000 and $15,000 as of March 31, 2016 and December 31, 2015, respectively. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2016 | |
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 Companys customers. Deferred revenue on the accompanying March 31, 2016 condensed consolidated balance sheet is approximately $400,000 and is related to the License Agreement with Bellco, which is being deferred over the remainder of the expected obligation period. The Company has recognized approximately $2,623,000 of license revenue related to the License Agreement to date and approximately $17,000 for the three months ended March 31, 2016. The Company recognized approximately $17,000 of license revenue related to this License Agreement for the three months ended March 31, 2015. Approximately $52,000 of revenue will be recognized in the remaining nine months of fiscal year 2016 and approximately $69,000 of revenue will be recognized in each of the years ended December 31, 2017 through 2021. Beginning on January 1, 2015, Bellco pays the Company a royalty based on the number of units of certain products sold per year due one fiscal quarter in arrears. For the three months ended March 31, 2016, the Company recognized royalty revenue of approximately $28,000. See Note 11, Commitments and Contingencies, for further discussion of the Bellco License Agreement. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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). Fair Value of Investment in Lease, net The carrying value of the investment in lease, net, approximates fair value as of March 31, 2016. Warrant Liability The Company had outstanding warrants originally issued in 2007 (the 2007 Warrants) that were accounted for as a derivative liability until they were fully exercised on September 29, 2015. 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 2007 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 Companys 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 March 31, 2015 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 estimated the volatility of its common stock based on historical volatility that matched the expected remaining life of the 2007 Warrants. The risk-free interest rate was 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 2007 Warrants. The expected life of the 2007 Warrants was assumed to be equivalent to their remaining contractual term. The dividend rate was based on the historical rate, which the Company anticipated to remain at zero. On the condensed consolidated statement of operations and comprehensive income (loss) for the three-month period ended March 31, 2015, the Company recorded income of $1,009,000 as a result of the change in fair value of the warrant liability. A reconciliation of the warrant liability is as follows: 2007 Warrants Balance at December 31, 2014 $ 7,386,000 Decrease in fair value of warrant liability (1,009,000 ) Balance at March 31, 2015 $ 6,377,000 The following table summarizes the calculated aggregate fair value of the 2007 Warrants, along with the assumptions utilized in each calculation: March 31, 2015 Calculated aggregate value $ 6,377,000 Weighted average exercise price $ 0.30 Closing price per share of common stock $ 0.60 Volatility 138 % Weighted average remaining expected life (years) 4.7 Risk-free interest rate 1.4 % Dividend yield - On September 29, 2015, the Company entered into a Warrant Amendment and Exercise Agreement (the Amendment) with Lambda Investors, LLC (Lambda), the Companys largest stockholder who owns approximately 62% of the Companys outstanding common stock. Pursuant to the Amendment, the Company agreed to reduce the current exercise price of the 2007 Warrants by 50%, to $0.15 per share, in exchange for Lambdas agreement to exercise the 2007 Warrants in their entirety immediately following the modification. |
Stock Plans and Share-Based Pay
Stock Plans and Share-Based Payments | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans and Share-Based Payments | Note 6 Stock Plans and Share-Based Payments 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, 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 $102,000 and $20,000 for the three months ended March 31, 2016 and 2015, respectively. For the three months ended March 31, 2016, approximately $7,000 and approximately $95,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statement of operations and comprehensive income (loss). For the three months ended March 31, 2015, approximately $16,000 and approximately $4,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statement of operations and comprehensive income (loss). There was no tax benefit related to expense recognized in the three months ended March 31, 2016 and 2015, as the Company is in a net operating loss position. As of March 31, 2016, there was approximately $1,096,000 of total unrecognized compensation cost related to unvested share-based compensation awards granted under the equity compensation plans. Approximately $158,000 of the $1,096,000 total unrecognized compensation will be recognized at the time that certain performance conditions are met. The remaining approximately $938,000 will be amortized over the weighted average remaining requisite service period of 2.9 years. Such amount does not include the effect of future grants of equity compensation, if any. Restricted Stock On January 1, 2016, the Company issued 89,773 shares of restricted stock as compensation for services previously rendered by a non-employee director. The grant date fair value of the outstanding restricted stock awards was approximately $16,000. During the three months ended March 31, 2016, the Company issued 154,427 shares of restricted stock as payment for non-employee services to be rendered. The grant date fair value of the outstanding restricted stock awards was approximately $46,000 and was based on the fair value of the common stock on the date of grant. Of the total grant date fair value of approximately $46,000, approximately $20,000 was recorded during the three months ended March 31, 2016. Additionally, restricted stock expense of approximately $25,000 was recorded during the three months ended March 31, 2016 related to shares of restricted stock issued to employees during the year ended December 31, 2015. Total stock based compensation for the restricted stock grants was approximately $45,000 and $6,000 for the three months ended March 31, 2016 and 2015, respectively, and is included in Selling, General and Administrative expenses on the accompanying condensed consolidated statement of operations and comprehensive income (loss). As of March 31, 2016, there was approximately $41,000 of unrecognized compensation expense related to the restricted stock awards, which is expected to be recognized over the next three or six months, dependent upon the respective restricted stock agreements. |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2016 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Note 7 - Warrants For the three months ended March 31, 2016, 19,621 warrants were exercised, resulting in proceeds of approximately $1,000 and the issuance of 906 shares of the Companys common stock. For the three months ended March 31, 2015, 20,927 warrants were exercised, resulting in proceeds of approximately $1,000 and the issuance of 967 shares of the Companys common stock. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
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. 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, 2016 March 31, 2015 Income (loss) per share - Basic: Numerator for basic income (loss) per share $ (836,000 ) $ 243,000 Denominator for basic income (loss) per share 48,173,521 30,259,823 Basic income (loss) per common share $ (0.02 ) $ 0.01 Income (loss) per share - Diluted: Numerator for diluted income (loss) per share $ (836,000 ) $ 243,000 Adjust: Change in fair value of dilutive warrants outstanding - (1,009,000 ) Numerator for diluted income (loss) per share $ (836,000 ) $ (766,000 ) Denominator for basic income (loss) per share 48,173,521 30,259,823 Plus: Incremental shares underlying warrants outstanding - 6,822,676 Denominator for diluted income (loss) per share 48,173,521 37,082,499 Diluted income (loss) per common share $ (0.02 ) $ (0.02 ) 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, 2016 2015 Shares underlying warrants outstanding 917,149 5,009,848 Shares underlying options outstanding 4,192,640 2,094,562 Unvested restricted stock 356,231 132,077 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
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 to be entitled to 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 was to be effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption was not permitted. In August, 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. The amendment in this ASU defers the effective date of ASU No. 2014-09 for all entities for one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to fiscal years beginning after December 15, 2017, including interim reporting periods within that fiscal year. Earlier application is permitted only as of fiscal years beginning after December 31, 2016, including interim reporting periods with that fiscal year. 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 Entitys Ability to Continue as a Going Concern. ASU 2014-15 provides guidance about managements responsibility to evaluate whether there is substantial doubt about an entitys 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 July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, that requires inventory be measured at the lower of cost and net realizable value and options that currently exist for market value be eliminated. The standard defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation and is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. The guidance should be applied prospectively. The Company does not believe that the adoption of ASU 2015-11 will have a significant impact on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, that requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this amendment. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company does not believe that the adoption of ASU 2015-17 will have a significant impact on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, that modifies certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The accounting standard update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, that discusses how an entity should account for lease assets and lease liabilities. The guidance specifies that an entity that is a lessee under lease agreements should recognize lease assets and lease liabilities for those leases classified as operating leases under previous FASB guidance. Accounting for leases by lessors is largely unchanged under the new guidance. The guidance is effective for the Company beginning in the first quarter of fiscal year 2019. Early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the impact of adopting this guidance on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations. The amendments in this update do not change the core principle of ASU 2014-09. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of ASU 2014-09. As discussed above, ASU 2015-14 defers the effective date of ASU 2014-09 by one year. The Company is currently assessing the impact that adopting this new accounting guidance will have on its financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for the Company beginning in the first quarter of fiscal year 2017. Early adoption is permitted. The Company is evaluating the impact of adopting this guidance on its consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing, which clarifies the implementation guidance performance obligations and licensing. The amendments in this update do not change the core principle of ASU 2014-09. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of ASU 2014-09. As discussed above, ASU 2015-14 defers the effective date of ASU 2014-09 by one year. The Company is currently assessing the impact that adopting this new accounting guidance will have on its financial statements. |
Inventory, Net
Inventory, Net | 3 Months Ended |
Mar. 31, 2016 | |
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. The Companys inventory as of March 31, 2016 and December 31, 2015 was as follows: March 31, 2016 December 31, 2015 (Unaudited) (Audited) Total Gross Inventory, Finished Goods $ 536,000 $ 634,000 Less: Inventory reserve (60,000 ) (43,000 ) Total Inventory, net $ 476,000 $ 591,000 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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 foreseeable 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 (the 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 License 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, on an exclusive basis, Sweden, Denmark, Norway and Finland, and, on a non-exclusive basis, Korea, Mexico, Brazil, China and the Netherlands. The First Amendment further provides new minimum sales targets which, if not satisfied, will, at the discretion of the Company, result in conversion of the license to non-exclusive status. The Company has agreed to reduce the fixed royalty payment payable to the Company for the period beginning on January 1, 2015 through and including December 31, 2021. Beginning on January 1, 2015 through and including December 31, 2021, Bellco will pay the Company a royalty based on the number of units of Products sold per year in the Territory as follows: for the first 125,000 units sold in total, 1.75 (approximately $1.91) per unit; thereafter, 1.25 (approximately $1.36) per unit. In addition, the Company received a total of 450,000 (approximately $612,000) in upfront fees in connection with the First Amendment, half of which was received on February 19, 2014 and the remaining half was received on April 4, 2014. In addition, the First Amendment provides that, in the event that the Company pursues a transaction to sell, assign or transfer all right, title and interest to the licensed patents to a third party, the Company will provide Bellco with written notice thereof and a right of first offer with respect to the contemplated transaction for a period of thirty (30) days. 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 Medicas proprietary Medisulfone ultrafiltration technology in conjunction with the Companys 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 Companys 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, 2015, the Companys aggregate purchase commitments totaled approximately 999,000 (approximately $1,119,000). For calendar years 2016 through 2022, annual minimum amounts will be mutually agreed upon between Medica and the Company. In December 2015, the Company and Medica formalized the agreed upon minimum purchase level for 2016 of 1,200,000 (approximately $1,500,000). In exchange for the license, the Company paid Medica a total of 1,500,000 (approximately $2,000,000) in three installments: 500,000 (approximately $700,000) on April 23, 2012, 600,000 (approximately $800,000) on February 4, 2013, and 400,000 (approximately $500,000) on May 23, 2013. As further consideration for the license and other rights granted to the Company, the Company granted Medica options to purchase 300,000 shares of the Companys common stock. The fair market value of these stock options was approximately $273,000 at the time of their issuance, calculated as described in Note 6 under Stock-Based Compensation. Together with the total installment payments described above, the fair market value of the options has been capitalized as a long-term intangible asset. The gross value of the intangible asset capitalized was approximately $2,250,000. Included in other long-term assets on the consolidated balance sheet is approximately $1,421,000 and $1,473,000, as of March 31, 2016 and December 31, 2015, respectively, related to the License and Supply Agreement. Accumulated amortization is approximately $829,000 and $777,000 as of March 31, 2016 and December 31, 2015, respectively. The asset is being amortized as an expense over the life of the License and Supply Agreement. Approximately $52,000 has been charged to amortization expense for the three months ended March 31, 2016 and 2015 on the condensed consolidated statement of operations and comprehensive loss. Approximately $158,000 of amortization expense will be recognized in the remainder of 2016 and approximately $210,000 will be recognized in each of the years ended December 31, 2017 through 2022. In addition, for the period beginning April 23, 2014 through December 31, 2022, the Company will pay Medica a royalty rate of 3% of net sales of the Filtration Products sold, subject to reduction as a result of a supply interruption pursuant to the terms of the License and Supply Agreement. Approximately $15,000 and $14,000 is included in accrued expenses as of March 31, 2016 and December 31, 2015, respectively. The term of the License and Supply Agreement commenced on April 23, 2012 and continues in effect through December 31, 2022, unless earlier terminated by either party in accordance with the terms of the License and Supply Agreement. As of September 2013, 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. Contractual Obligations The Company has an operating lease that expires on November 30, 2018 for the rental of its U.S. office and research and development facilities with a monthly cost of approximately $9,000. Included in other assets, net, on the condensed consolidated balance sheet as of March 31, 2016 is approximately $21,000 related to a security deposit for the U.S. office facility. Rent expense was approximately $29,000 and $38,000 for the three months ended March 31, 2016 and 2015, respectively. Investment in Lease, net On October 8, 2015, the Company entered into an equipment lease agreement with Biocon 1, LLC. The lease commenced on January 1, 2016 with a term of 60 months and monthly rental payments of approximately $1,800 will be paid to the Company. At the completion of the lease term, Biocon 1, LLC will own the equipment provided under the agreement. An investment in lease was established for the direct financing lease receivable at the present value of the future minimum lease payments. Interest income will be recognized monthly over the lease term using the effective-interest method. Cash received will be applied against the direct financing lease receivable and will be presented within changes in operating assets and liabilities in the operating section of the Companys consolidated statement of cash flows. At lease inception, an investment in the lease of approximately $92,000 was recorded, net of unearned interest of approximately $14,000. During the three months ended March 31, 2016, approximately $1,000 was recognized in interest income. As of March 31, 2016, investment in lease, current is approximately $22,000, net of unearned interest of $5,000. As of March 31, 2016, investment in lease, noncurrent, is approximately $71, 000, net of unearned interest of $8,000. As of March 31, 2016, scheduled maturities of minimum lease payments receivable were as follows: 2016 $ 18,000 2017 17,000 2018 18,000 2019 19,000 2020 21,000 93,000 Less: Current portion (22,000 ) Investment in sales-type lease, noncurrent $ 71,000 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 - Subsequent Events In April 2016, the Company filed for 510(k) clearance of an endotoxin cartridge filter. The endotoxin cartridge filter, EndoPur, is designed to provide hemodialysis quality water through ultrafiltration of the water in a dialysis clinics reverse osmosis loop. The EndoPur filter retains particles as small as 0.005 microns, is designed to handle higher flowrates and will be offered in 10, 20, 30 or 40 sizes. Because the EndoPur conforms to the design controls of the SSU-D, and has the same intended use, the Company believed that the cartridge qualified for the Special 510(k): Device Modification process, which has a 30 day FDA review timeline. On April 28, 2016, the Company received a response from FDA, in which FDA noted that it had determined that the Special 510(k) should be converted to a Traditional 510(k). FDA requested additional information on the 20, 30 and 40 filter sizes and on the reusable external filter housing. Following discussions with FDA, the Company converted the Special 510(k) submission to a Traditional 510(k) submission for the 20, 30 and 40 filter sizes. The Company filed a separate Special 510(k) for the EndoPur 10 filter size in May 2016. Due to the longer FDA review process associated with a Traditional 510(k) submission, the Company aims to launch the 20, 30 and 40 filter sizes early in the fourth quarter of 2016, subject to completion of the FDA clearance process. As the 10 filter size still qualifies for the Special 510(k) process, the Company aims to launch the 10 filter size early in the third quarter of 2016, subject to completion of the FDA clearance process. |
Basis of Presentation and Goi19
Basis of Presentation and Going Concern (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Basis Of Presentation And Going Concern Policies | |
Interim Financial Information | Interim Financial Information The accompanying unaudited condensed consolidated interim financial statements of Nephros, Inc. and its wholly owned subsidiary, Nephros International Limited should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Companys 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the SEC) on March 30, 2016. 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, 2015 was derived from the Companys 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. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. 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, assumptions used in determining stock compensation such as expected volatility and risk-free interest rate and the ability of the Company to continue as a going concern. |
Reclassifications | Reclassifications Certain reclassifications were made to the prior years amounts to conform to the 2016 presentation. |
Going Concern | Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Companys 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 Companys consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company has incurred significant losses in operations in each quarter and has not generated positive cash flow from operations since inception. To become profitable, the Company must increase revenue substantially and achieve and maintain income from operations. If the Company is not able to increase revenue and generate income from operations sufficiently to achieve profitability, its results from operations and its financial condition will be materially and adversely affected. Based on current cash flow projections, the Company expects that the proceeds from the Lambda Class D warrant exercise and the additional warrant exercises that resulted from the tender offer and the projected increases in product sales will allow the Company to fund its operations at least into the third quarter of 2016, depending on the timing and market up-take of the Companys new products. This assumption excludes the impact of future cash receipts from recurring operations. There can be no assurance that the Companys 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. |
Major Customers and Concentra20
Major Customers and Concentration of Credit Risk (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Sales Revenue Goods Net [Member] | |
Concentration Risk [Line Items] | |
Schedules Of Concentration Of Risk, By Risk Factor | For the three months ended March 31, 2016 and 2015, the following customers accounted for the following percentages of the Companys sales, respectively. Customer 2016 2015 A 42 % 28 % B 17 % 18 % C 11 % - % D 2 % 30 % |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Schedules Of Concentration Of Risk, By Risk Factor | As of March 31, 2016 and December 31, 2015, the following customers accounted for the following percentages of the Companys accounts receivable, respectively. Customer 2016 2015 A 51 % 37 % B 12 % 3 % C 11 % 11 % D 2 % 23 % |
Fair Value of Financial Instr21
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Reconciliation of Warrant Liability | A reconciliation of the warrant liability is as follows: 2007 Warrants Balance at December 31, 2014 $ 7,386,000 Decrease in fair value of warrant liability (1,009,000 ) Balance at March 31, 2015 $ 6,377,000 |
Schedule of Calculated Aggregate Fair Values of Warrants | The following table summarizes the calculated aggregate fair value of the 2007 Warrants, along with the assumptions utilized in each calculation: March 31, 2015 Calculated aggregate value $ 6,377,000 Weighted average exercise price $ 0.30 Closing price per share of common stock $ 0.60 Volatility 138 % Weighted average remaining expected life (years) 4.7 Risk-free interest rate 1.4 % Dividend yield - |
Net Income (Loss) per Common 22
Net Income (Loss) per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 March 31, 2015 Income (loss) per share - Basic: Numerator for basic income (loss) per share $ (836,000 ) $ 243,000 Denominator for basic income (loss) per share 48,173,521 30,259,823 Basic income (loss) per common share $ (0.02 ) $ 0.01 Income (loss) per share - Diluted: Numerator for diluted income (loss) per share $ (836,000 ) $ 243,000 Adjust: Change in fair value of dilutive warrants outstanding - (1,009,000 ) Numerator for diluted income (loss) per share $ (836,000 ) $ (766,000 ) Denominator for basic income (loss) per share 48,173,521 30,259,823 Plus: Incremental shares underlying warrants outstanding - 6,822,676 Denominator for diluted income (loss) per share 48,173,521 37,082,499 Diluted income (loss) per common share $ (0.02 ) $ (0.02 ) |
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, 2016 2015 Shares underlying warrants outstanding 917,149 5,009,848 Shares underlying options outstanding 4,192,640 2,094,562 Unvested restricted stock 356,231 132,077 |
Inventory, Net (Tables)
Inventory, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The Companys inventory as of March 31, 2016 and December 31, 2015 was as follows: March 31, 2016 December 31, 2015 (Unaudited) (Audited) Total Gross Inventory, Finished Goods $ 536,000 $ 634,000 Less: Inventory reserve (60,000 ) (43,000 ) Total Inventory, net $ 476,000 $ 591,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturitie Minimum Lease Payments Receivable | As of March 31, 2016, scheduled maturities of minimum lease payments receivable were as follows: 2016 $ 18,000 2017 17,000 2018 18,000 2019 19,000 2020 21,000 93,000 Less: Current portion (22,000 ) Investment in sales-type lease, noncurrent $ 71,000 |
Organization and Nature of Op25
Organization and Nature of Operations (Details Narrative) | 3 Months Ended |
Mar. 31, 2016Products | |
Organization and Nature of Operations [Abstract] | |
Number of products in development | 2 |
Major Customers and Concentra26
Major Customers and Concentration of Credit Risk (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Major Customers And Concentration Of Credit Risk Details Narrative | ||
Allowance for doubtful accounts | $ 24 | $ 15 |
Major Customers and Concentra27
Major Customers and Concentration of Credit Risk - Schedules of Concentration of Risk, by Risk Factor (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Sales Revenue Goods Net [Member] | Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 42.00% | 28.00% |
Sales Revenue Goods Net [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 17.00% | 18.00% |
Sales Revenue Goods Net [Member] | Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 0.00% |
Sales Revenue Goods Net [Member] | Customer D [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 2.00% | 30.00% |
Accounts Receivable [Member] | Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 51.00% | 37.00% |
Accounts Receivable [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 3.00% |
Accounts Receivable [Member] | Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 11.00% |
Accounts Receivable [Member] | Customer D [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 2.00% | 23.00% |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Deferred revenue | $ 400 | ||
Royalty revenue | 28,000 | ||
License Agreement [Member] | |||
Revenue recognized | $ 17 | $ 17 | $ 2,623 |
Deferred Revenue, Description | Approximately $52,000 of revenue will be recognized in the remaining nine months of fiscal year 2016 and approximately $69,000 of revenue will be recognized in each of the years ended December 31, 2017 through 2021. | ||
License Agreement [Member] | Remaining Nine Months of Fiscal Year 2016 [Member] | |||
Revenue recognized | $ 52 | ||
License Agreement [Member] | December 31, 2017 through 2021 [Member] | |||
Revenue recognized | $ 69 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Sep. 29, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value Disclosures [Line Items] | |||
Change in fair value of warrant liability | $ 1,009 | ||
Warrant [Member] | |||
Fair Value Disclosures [Line Items] | |||
Reduced percentage of warrant excersize price | 50.00% | ||
Class of warrant or right exercise price | $ 0.15 | ||
Warrant [Member] | Lambda Investors, LLC [Member] | |||
Fair Value Disclosures [Line Items] | |||
Owns approximately Percentage | 62.00% |
Financial Instruments - Schedul
Financial Instruments - Schedule of Reconciliation of Warrant Liability (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Fair Value Disclosures [Abstract] | |
Warrant liability, Beginning balance | $ 7,386 |
Decrease in fair value of warrant liability | (1,009) |
Warrant liability, ending balance | $ 6,377 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Inputs, Liabilities, Quantitative Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($)$ / shares | |
Fair Value Disclosures [Abstract] | |
Calculated aggregate value | $ | $ 6,377 |
Weighted average exercise price | $ .30 |
Closing price per share of common stock | $ .60 |
Volatility | 138.00% |
Weighted average remaining expected life (years) | 4 years 8 months 12 days |
Risk-free interest rate | 1.40% |
Dividend yield | 0.00% |
Stock Plans and Share-Based P32
Stock Plans and Share-Based Payments (Details Narrative) - USD ($) $ in Thousands | Jan. 02, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Stock-based compensation expense | $ 102 | $ 20 | ||
Selling, general and administrative | 777 | 843 | ||
Research and development | 269 | 192 | ||
Tax benefit related to expense recognized | 0 | 0 | ||
Total unrecognized compensation cost | 1,096 | |||
Unrecognized compensation cost | 158 | 1,096 | ||
Unrecognized compensation remaining amount | $ 938 | |||
Amortized over weighted average remaining requisite service period | 2 years 10 months 24 days | |||
Fair value grand data outstanding | $ 20 | |||
Restricted stock expense | 25 | |||
Stock Based Compensation [Member] | ||||
Selling, general and administrative | 7 | 16 | ||
Research and development | 95 | 4 | ||
Restricted Stock [Member] | ||||
Stock-based compensation expense | 45 | $ 6 | ||
Total unrecognized compensation cost | $ 41 | |||
Fair value grand data outstanding | $ 46 | |||
Restricted Stock [Member] | Non Employee Director [Member] | ||||
Number of shares issued for services, shares | 89,773 | |||
Fair value grand data outstanding | $ 16 | |||
Restricted Stock [Member] | Non Employee Services [Member] | ||||
Number of shares issued for services, shares | 154,427 | |||
Fair value grand data outstanding | $ 46 |
Warrants (Details Narrative)
Warrants (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Warrants [Line Items] | ||
Proceeds from warrant exercises | $ 1 | $ 1 |
Warrants [Member] | ||
Warrants [Line Items] | ||
Issuance of common stock shares for additional warrants exercised | 19,621 | 20,927 |
Proceeds from warrant exercises | $ 1 | $ 1 |
Issuance of common stock | 906 | 967 |
Net Income (Loss) per Common 34
Net Income (Loss) per Common Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Numerator for basic income (loss) per share | $ (836) | $ 243 |
Denominator for basic income (loss) per share | 48,173,521 | 30,259,823 |
Basic income (loss) per common share | $ (0.02) | $ 0.01 |
Numerator for diluted income (loss) per share | $ (836) | $ 243 |
Adjust: Change in fair value of dilutive warrants outstanding | (1,009) | |
Numerator for diluted income (loss) per share | $ (836) | $ (766) |
Denominator for basic income (loss) per share | 48,173,521 | 30,259,823 |
Plus: Incremental shares underlying warrants outstanding | 6,822,676 | |
Denominator for diluted income (loss) per share | 48,173,521 | 37,082,499 |
Diluted income (loss) per common share | $ (0.02) | $ (0.02) |
Net Income (Loss) per Common 35
Net Income (Loss) per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 917,149 | 5,009,848 |
Unvested Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 356,231 | 132,077 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded anti-dilutive stock options and warrants | 4,192,640 | 2,094,562 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Total Gross Inventory, Finished Goods | $ 536 | $ 634 |
Less: Inventory reserve | (60) | (43) |
Total Inventory, net | $ 476 | $ 591 |
Commitments and Contingencies37
Commitments and Contingencies (Details Narrative) $ / shares in Units, € in Thousands | Oct. 08, 2015USD ($) | Feb. 04, 2013USD ($) | May. 23, 2013USD ($) | Apr. 23, 2012USD ($) | Apr. 23, 2012EUR (€) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015EUR (€)shares | Sep. 30, 2013 |
Commitments And Contingencies [Line Items] | ||||||||||
Gross value of the intangible asset capitalized | $ 2,250,000 | |||||||||
Intangible assets included in other long term assets | 1,421,000 | $ 1,473,000 | ||||||||
Accumulated amortization | 829,000 | 777,000 | ||||||||
Amortization of other deferred charges | 52,000 | $ 52,000 | ||||||||
Amortization expense, years two and three | $ 158,000 | 210,000 | ||||||||
Royalty rate | 3.00% | 3.00% | ||||||||
Accrued expenses | $ 15,000 | $ 14,000 | ||||||||
Operating lease expiration date | Nov. 30, 2018 | |||||||||
Research and development facilities with monthly cost | $ 9,000 | |||||||||
Security deposit | 21,000 | |||||||||
Rent expense | 29,000 | $ 38,000 | ||||||||
Investment lease | 92,000 | |||||||||
Unearned interest | 14,000 | |||||||||
Interest income | 1,000 | |||||||||
Investment in lease, net – current portion | 22,000 | |||||||||
Unearned interest current | 5,000 | |||||||||
Investment in lease, net – less current portion | 71,000 | |||||||||
Unearned interest noncurrent | $ 8,000 | |||||||||
Bellco [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Number of units under first tier royalty receivable | 125,000 | |||||||||
First tier royalty per unit | $ / shares | $ 1.91 | |||||||||
Second tier royalty per unit | $ / shares | $ 1.36 | |||||||||
Bellco [Member] | EUR [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Number of units under first tier royalty receivable | 125,000 | |||||||||
First tier royalty per unit | $ / shares | $ 1.75 | |||||||||
Second tier royalty per unit | $ / shares | $ 1.25 | |||||||||
Medica Spa [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Upfront fees and connection of first amendment | $ 612,000 | |||||||||
License agreement product purchases in year one | 400,000 | |||||||||
License agreement product purchases in year two | 700,000 | |||||||||
License agreement product purchases in year three | 880,000 | |||||||||
Purchase commitment | 1,119,000 | |||||||||
License agreement payment | $ 2,000,000 | |||||||||
License agreement first installment payment | $ 700,000 | |||||||||
License agreement second installment payment | $ 800,000 | |||||||||
License agreement final installment payment | $ 500,000 | |||||||||
License agreement options to purchase shares | shares | 300,000 | 300,000 | ||||||||
Fair value of stock options granted to medica | $ 273,000 | |||||||||
Debt instrument, interest rate, stated percentage | 12.00% | |||||||||
Medica Spa [Member] | 2016 [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Purchase commitment | 1,500,000 | |||||||||
Medica Spa [Member] | EUR [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Upfront fees and connection of first amendment | 450,000 | |||||||||
License agreement product purchases in year one | 300,000 | |||||||||
License agreement product purchases in year two | 500,000 | |||||||||
License agreement product purchases in year three | 750,000 | |||||||||
Purchase commitment | 999,000 | |||||||||
License agreement payment | $ 1,500,000 | |||||||||
License agreement first installment payment | € | € 500 | |||||||||
License agreement second installment payment | $ 600,000 | |||||||||
License agreement final installment payment | $ 400,000 | |||||||||
Medica Spa [Member] | EUR [Member] | 2016 [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Purchase commitment | € | € 1,200 | |||||||||
Biocon 1 Llc [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Rent expense | $ 1,800,000 | |||||||||
Lease term | 60 months |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Maturitie Minimum Lease Payments Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
2,016 | $ 18 | |
2,017 | 17 | |
2,018 | 18 | |
2,019 | 19 | |
2,020 | 21 | |
Total | 93 | |
Less: Current portion | (22) | |
Investment in sales-type lease, noncurrent | $ 71 |