Nephros (NEPH) 10-Q 8 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 03, 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	Jun. 30, 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	Q2
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash	$ 1,602	$ 1,248
Accounts receivable, net	346	397
Investment in lease, net-current portion	26
Inventory, net	413	591
Prepaid expenses and other current assets	67	228
Total current assets	2,454	2,464
Property and equipment, net	84	12
Investment in lease, net-less current portion	68
Other assets, net	1,389	1,494
Total assets	3,995	3,970
Current liabilities:
Accounts payable	838	652
Accrued expenses	310	237
Deferred revenue, current portion	70	70
Total current liabilities	1,218	959
Unsecured long-term note payable, net of debt issuance costs and debt discount of $396	791
Long-term portion of deferred revenue	313	347
Total liabilities	2,322	1,306
Commitments and Contingencies
Stockholders' equity
Preferred stock, $.001 par value; 5,000,000 shares authorized at June 30, 2016 and December 31, 2015; no shares issued and outstanding at June 30, 2016 and December 31, 2015
Common stock, $.001 par value; 90,000,000 shares authorized at June 30, 2016 and December 31, 2015; 48,825,461 and 48,580,355 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	49	49
Additional paid-in capital	120,477	119,797
Accumulated other comprehensive income	71	71
Accumulated deficit	(118,924)	(117,253)
Total stockholders' equity	1,673	2,664
Total liabilities and stockholders' equity	$ 3,995	$ 3,970

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Debt discount	$ 396
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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net revenues:
Product revenues	$ 452	$ 521	$ 997	$ 1,049
License, royalty and other revenues	57	46	102	63
Total net revenues	509	567	1,099	1,112
Cost of goods sold	212	209	507	471
Gross margin	297	358	592	641
Operating expenses:
Research and development	254	164	523	355
Depreciation and amortization	56	53	111	106
Selling, general and administrative	804	735	1,582	1,578
Total operating expenses	1,114	952	2,216	2,039
Loss from operations	(817)	(594)	(1,624)	(1,398)
Change in fair value of warrant liability		(1,196)		(188)
Interest expense	(30)	(9)	(44)	(21)
Interest income	1		3
Other income (expense)	11	(16)	(6)	35
Net loss	(835)	(1,815)	(1,671)	(1,572)
Other comprehensive loss, foreign currency translation adjustments	(1)	(1)		(1)
Total comprehensive loss	$ (836)	$ (1,816)	$ (1,671)	$ (1,573)
Net loss per common share, basic and diluted	$ (0.02)	$ (0.06)	$ (0.03)	$ (0.05)
Weighted average common shares outstanding, basic and diluted	48,545,720	31,190,714	48,359,620	30,727,840

Consolidated Statement of Chang

Consolidated Statement of Changes In Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 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				(1,671)	(1,671)
Issuance of restricted stock		16			16
Issuance of restricted stock, shares	244,200
Issuance of warrants, net of issuance costs of $4		389			389
Exercise of warrants		1			1
Exercise of warrants, Shares	906
Noncash stock-based compensation		274			274
Balance at Jun. 30, 2016	$ 49	$ 120,477	$ 71	$ (118,901)	$ 1,673
Balance, shares at Jun. 30, 2016	48,825,461

Consolidated Statement of Chan6

Consolidated Statement of Changes In Stockholders' Equity (Parenthetical) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Statement of Stockholders' Equity [Abstract]
Warrants issuance cost	$ 4

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities:
Net loss	$ (1,671)	$ (1,572)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment	6	1
Amortization of other assets	105	105
Noncash stock-based compensation, including stock options and restricted stock	233	119
Non-employee stock-based compensation	41
Amortization of debt discount	6
Change in fair value of warrant liability		188
Inventory reserve	27
Allowance for doubtful accounts reserve	15
Loss on foreign currency transactions	3	1
(Increase) decrease in operating assets:
Accounts receivable	36	(185)
Inventory	169	(233)
Prepaid expenses and other current assets	17	43
Increase (decrease) in operating liabilities:
Accounts payable	178	153
Accrued expenses	75	(36)
Deferred revenue	(34)	(35)
Net cash used in operating activities	(794)	(1,451)
Investing activities:
Purchase of property and equipment	(40)
Net cash used in investing activities	(40)
Financing activities:
Proceeds from issuance of unsecured note	1,187
Proceeds from issuance of common stock		1,205
Proceeds from exercise of warrants	1	1
Net cash provided by financing activities	1,188	1,206
Effect of exchange rates on cash		(2)
Net increase (decrease) in cash	354	(247)
Cash, beginning of period	1,248	1,284
Cash, end of period	1,602	1,037
Supplemental disclosure of cash flow information
Cash paid for interest	26	25
Cash paid for income taxes	2	2
Supplemental disclosure of noncash investing and financing activities
Value of warrants issued with unsecured note payable	393
Investment in lease receivable, net	92
Cost of equipment in sales-type-lease	92
Restricted stock issued to settle liability	16
Reclassification of inventory from prepaid expenses and other current assets	18
Reclassification of property and equipment from prepaid expenses and other current assets	124
Purchase of property and equipment in accounts payable	$ 5

Organization and Nature of Oper

Organization and Nature of Operations	6 Months Ended
	Jun. 30, 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 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 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 Company’s corporate headquarters and research facilities.

Basis of Presentation and Going

Basis of Presentation and Going Concern	6 Months Ended
	Jun. 30, 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 Company’s 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 Company’s audited consolidated financial statements but does not include all disclosures required by GAAP. In the opinion of management, the condensed consolidated interim financial statements reflect all adjustments consisting of normal, recurring adjustments that are necessary for a fair presentation of the financial position, results of operations and cash flows for the condensed consolidated interim periods presented. Interim results are not necessarily indicative of results for a full year. 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 lives of fixed assets and intangible assets, and 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. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company’s recurring losses and difficulty in generating sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. The Company’s consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company has incurred significant losses in operations in each quarter 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 of operations and financial condition will be materially and adversely affected. Based on the Company’s current projections, the Company expects that its existing cash balances and projected increase in product sales from the launch of new products, will allow the Company to fund its operations at least into the first quarter of 2017, if not longer, depending on the timing and market uptake of our new products. This assumption excludes the impact of future cash receipts from recurring operations. 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. Recently Adopted Accounting Pronouncement In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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 annual and interim periods beginning after December 15, 2015. The Company adopted ASU 2015-03 during the three months ended June 30, 2016.

Major Customers and Concentrati

Major Customers and Concentration of Credit Risk	6 Months Ended
	Jun. 30, 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 June 30, 2016 and 2015, the following customers accounted for the following percentages of the Company’s revenues, respectively. Customer 2016 2015 A 19 % 3 % B 10 % 31 % C 2 % 23 % For the six months ended June 30, 2016 and 2015, the following customers accounted for the following percentages of the Company’s revenues, respectively. Customer 2016 2015 A 24 % 26 % B 14 % 25 % C 10 % 16 % As of June 30, 2016 and December 31, 2015, the following customers accounted for the following percentages of the Company’s accounts receivable, respectively. Customer 2016 2015 A 35 % 37 % B 12 % 11 % C 10 % - % D 4 % 23 % The Company provides credit terms to customers in connection with purchases of the Company’s products. Management periodically reviews customer account activity in order to assess the adequacy of the allowances provided for potential collection issues and returns. Adjustments, if any, are made to reserve balances following the completion of these reviews to reflect management’s best estimate of potential losses. The allowance for doubtful accounts was approximately $30,000 and $15,000 as of June 30, 2016 and December 31, 2015, respectively.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 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 Company’s customers. Deferred revenue on the accompanying June 30, 2016 condensed consolidated balance sheet is approximately $383,000 and is related to the Company’s License Agreement with Bellco (see Note 12), which is being deferred over the remainder of the expected obligation period. The Company has recognized approximately $2,640,000 of revenue related to the Bellco License Agreement to date and approximately $17,000 and $34,000, respectively, for the three and six months ended June 30, 2016. The Company recognized approximately $17,000 and $35,000, respectively, of revenue related to this License Agreement for the three and six months ended June 30, 2015. Revenue recognized in the three and six months ended June 30, 2015 and 2016 relates to the upfront payment received in February 2014. Approximately $35,000 of revenue will be recognized in the remaining six 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. In addition, 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 and six months ended June 30, 2016, the Company recognized approximately $29,000 and $57,000, respectively. For the three months ended June 30, 2015, the Company recognized approximately $28,000. See Note 12, Commitments and Contingencies, for further discussion of the Bellco License Agreement.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 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, and Unsecured Long-Term Note Payable The amounts the investment in lease, net, and the unsecured long-term note payable as of June 30, 2016 those instruments similar with similar 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 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 June 30, 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 loss for the three month period ended June 30, 2015, the Company recorded expense of $1,196,000 as a result of the change in fair value of the warrant liability. On the condensed consolidated statement of operations and comprehensive loss for the six month period ended June 30, 2015, the Company recorded expense of $188,000 as a result of the change in fair value of the warrant liability. A reconciliation of the warrant liability for the three and six month periods ended June 30, 2015 is as follows: 2007 Warrants Balance at March 31, 2015 $ 6,378,000 Increase in fair value of warrant liability 1,196,000 Balance at June 30, 2015 $ 7,574,000 2007 Warrants Balance at December 31, 2014 $ 7,386,000 Increase in fair value of warrant liability 188,000 Balance at June 30, 2015 $ 7,574,000 The following table summarizes the calculated aggregate fair value of the 2007 Warrants, along with the assumptions utilized in each calculation: June 30, 2015 Calculated aggregate value $ 7,574,000 Weighted average exercise price $ 0.30 Closing price per share of common stock $ 0.71 Volatility 135.0 % Weighted average remaining expected life (years) 4.5 Risk-free interest rate 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”), the Company’s largest stockholder who owns approximately 62% of the Company’s 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 Lambda’s 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	6 Months Ended
	Jun. 30, 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 that vest upon service conditions is amortized over the vesting period of the award using the straight-line method. The Company granted 30,000 stock options to a consultant during the three and six months ended June 30, 2016. The fair value of the stock options will be expensed over the one year vesting period. The grant date fair value of the stock options as of June 30, 2016 was approximately $7,000. In accordance with ASC 505-50, the stock options granted to the consultant will be remeasured at each reporting period until vested. 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 $194,000 and $110,000 for the six months ended June 30, 2016 and 2015, respectively. For the six months ended June 30, 2016, approximately $179,000 and approximately $15,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statement of operations and comprehensive loss. For the six months ended June 30, 2015, approximately $100,000 and approximately $10,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statements of operations and comprehensive income (loss). Stock-based compensation expense was approximately $92,000 and $90,000 for the three months ended June 30, 2016 and 2015, respectively. For the three months ended June 30, 2016, approximately $84,000 and approximately $8,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statement of operations and comprehensive loss. For the three months ended June 30, 2015, approximately $84,000 and approximately $6,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statements of operations and comprehensive income (loss). There was no tax benefit related to expense recognized in the six months ended June 30, 2016 and 2015, as the Company is in a net operating loss position. As of June 30, 2016, there was approximately $1,003,000 of total unrecognized compensation cost related to unvested share-based compensation awards granted under the equity compensation plans. Approximately $158,000 of the $1,003,000 total unrecognized compensation will be recognized at the time that certain performance conditions are met. The remaining approximately $845,000 will be amortized over the weighted average remaining requisite service period of 2.6 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 nonemployee director. The grant date fair value of the outstanding restricted stock awards was approximately $16,000. During the six months ended June 30, 2016, the Company issued 154,527 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 $21,000 and $41,000, respectively, was recorded during the three and six months ended June 30, 2016. Additionally, stock-based compensation expense of approximately $14,000 and $38,000, respectively, was recorded during the three and six months ended June 30, 2016 related to shares of restricted stock issued to employees during the year ended December 31, 2015. Total stock-based compensation expense for the restricted stock grants was approximately $79,000 and $9,000 for the six months ended June 30, 2016 and 2015, respectively, and is included in Selling, General and Administrative expenses on the accompanying condensed consolidated statements of operations and comprehensive income (loss). Total stock-based compensation expense for the restricted stock grants was approximately $35,000 and $3,000 for the three months ended June 30, 2016 and 2015, respectively, and is included in Selling, General and Administrative expenses on the accompanying condensed consolidated statements of operations and comprehensive income (loss). As of June 30, 2016, there was approximately $5,000 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	6 Months Ended
	Jun. 30, 2016
Warrants and Rights Note Disclosure [Abstract]
Warrants	Note 7 - Warrants During the six months ended June 30, 2016, 19,621 warrants were exercised, resulting in proceeds of approximately $1,000 and the issuance of 906 shares of the Company’s common stock. There were no warrants exercised during the three months ended June 30, 2016. During the three months ended June 30, 2015, 25,112 warrants were exercised, resulting in proceeds of approximately $500 and the issuance of 1,160 shares of common stock. During the six months ended June 30, 2015, 46,039 warrants were exercised, resulting in proceeds of approximately $1,000 and the issuance of 2,127 shares of common stock.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	6 Months Ended
	Jun. 30, 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. If applicable for a given period, 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 six months June 30, June 30, June 30, June 30, 2016 2015 2016 2015 Income (loss) per share - Basic: Numerator for basic income (loss) per share $ (835,000 ) $ (1,815,000 ) $ (1,671,000 ) $ (1,572,000 ) Denominator for basic income (loss) per share 48,545,720 31,190,714 48,359,620 30,727,840 Basic income (loss) per common share $ (0.02 ) $ (0.06 ) $ (0.03 ) $ (0.05 ) Income (loss) per share - Diluted: Numerator for diluted income (loss) per share $ (835,000 ) $ (1,815,000 ) $ (1,671,000 ) $ (1,572,000 ) Adjust: Change in fair value of dilutive warrants outstanding - 1,196,000 - 188,000 Numerator for diluted income (loss) per share $ (835,000 ) $ (619,000 ) $ (1,671,000 ) $ (1,384,000 ) Denominator for basic income (loss) per share 48,545,720 31,190,714 48,359,620 30,727,840 Plus: Incremental shares underlying warrants outstanding - - - - Denominator for diluted income (loss) per share 48,545,720 31,190,714 48,359,620 30,727,840 Diluted income (loss) per common share $ (0.02 ) $ (0.06 ) $ (0.03 ) $ (0.05 ) The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: June 30, 2016 2015 Shares underlying warrants outstanding 3,291,149 17,667,937 Shares underlying options outstanding 4,222,640 3,634,502 Unvested restricted stock 128,234 -

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Note 9 - Recent Accounting Pronouncements In May 2014, the FASB issued 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 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date”. The amendment in this ASU defers the effective date of ASU 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. Early adoption is permitted only for fiscal years beginning after December 31, 2016, including interim reporting periods within 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 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and sets rules for how this information should be disclosed in the financial statements. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company is currently evaluating any impact the adoption of ASU 2014-15 might have on its consolidated financial statements. In July 2015, the FASB issued ASU 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 to 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 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 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 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 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 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 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. In May 2016, the FASB issued ASU 2016-12, “Narrow Scope Improvements and Practical Expedients,” which clarifies the accounting for certain aspects of guidance issued in ASU 2014-09, including assessing collectability and noncash consideration. The clarifications 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 June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020. Early adoption is permitted beginning in the first quarter of fiscal year 2019. The Company is evaluating the impact of adopting this guidance on its consolidated financial statements.

Inventory, Net

Inventory, Net	6 Months Ended
	Jun. 30, 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 Company’s inventory as of June 30, 2016 and December 31, 2015 was as follows: June 30, 2016 December 31, 2015 (Unaudited) (Audited) Total Gross Inventory, Finished Goods $ 469,000 $ 634,000 Less: Inventory reserve (56,000 ) (43,000 ) Total Inventory $ 413,000 $ 591,000

Unsecured Promissory Notes and

Unsecured Promissory Notes and Warrants	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Unsecured Promissory Notes and Warrants	Note 11 - Unsecured Promissory Notes and Warrants On June 7, 2016, the Company entered into a Note and Warrant Agreement (the “Agreement”) with new creditors as well as existing shareholders under which the Company issued unsecured promissory notes (“Notes”) and warrants (“Warrants”) resulting in total gross proceeds to the Company during June 2016 of approximately $1,187,000. The outstanding principal under the Notes accrues interest at a rate of 11% per annum. The Company is required to make interest only payments on a semi-annual basis, and all outstanding principal under the Notes is repayable in cash on June 7, 2019, the third anniversary of the date of issuance. In addition to the Notes, the Company issued Warrants to purchase approximately 2.4 million shares of the Company’s common stock to the investors in the Agreement. The warrants have an exercise price of $0.30 per share and are exercisable for 5 years from the issuance date. The Warrants issued under the Agreement are indexed to the Company’s common stock, therefore, the Company is accounting for the Warrants as a component of equity. In connection with the Agreement, the Company incurred approximately $13,000 in legal fees. The approximately $1,187,000 in gross proceeds from the Agreement, along with the legal fees of approximately $13,000 were allocated between the Notes and Warrants based on their relative fair values. The portion of the proceeds, including fees, allocated to the Warrants of approximately $393,000 was accounted for as additional paid-in capital. Approximately $4,000 of the legal fees were allocated to the Warrants and recorded as a reduction to additional paid-in capital. The remainder of the proceeds of approximately $794,000, including fees, was allocated to the Notes with the fair value of the Warrants resulting in a debt discount. The debt discount is being amortized to interest expense using the effective interest method in accordance with ASC 835 over the term of the Agreement. As of June 30, 2016, approximately $6,000 was recognized as amortization of debt discount and is included in interest expense on the condensed consolidated interim statement of operations and comprehensive loss. As of June 30, 2016, approximately $10,000 of interest expense has been accrued. As of June 30, 2016, the portion of the outstanding unsecured promissory notes due to entities controlled by a member of management and to the majority shareholder amounted to $30,000 and $300,000, respectively. There were no unsecured long-term notes payable outstanding as of December 31, 2015.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 12 - Commitments and Contingencies Manufacturing and Suppliers The Company has not and does not intend in the near future to manufacture any of its products and components. With regard to the OLpur MD190 and MD220, on June 27, 2011, the Company entered into a license agreement (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 Sweden, Denmark, Norway, Finland, Korea, Mexico, Brazil, China and the Netherlands. The First Amendment further provides new minimum sales targets which, if not satisfied, will, at the discretion of the Company, result in conversion of the license to non-exclusive status. The Company has agreed to reduce the fixed royalty payment payable to the Company for the period beginning on January 1, 2015 through and including December 31, 2021. Beginning on January 1, 2015 through and including December 31, 2021, Bellco will pay the Company a royalty based on the number of units of Products sold per year in the Territory as follows: for the first 125,000 units sold in total, €1.75 (estimated at approximately $1.95 using current exchange rates) per unit; thereafter, €1.25 (estimated at approximately $1.40 using current exchange rates) 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. See Note 4 for further discussion of the licensing revenue recognized by the Company related to the upfront fees. In addition to the licensing revenue, the Company recognized royalty revenue related to the First Amendment with Bellco. For the three and six months ended June 30, 2016, the Company recognized approximately $29,000 and $57,000, respectively. For the three months ended June 30, 2015, the Company recognized approximately $28,000. License and Supply Agreement On April 23, 2012, the Company entered into a License and Supply Agreement (the “License and Supply Agreement”) with Medica S.p.A. (“Medica”), an Italy-based medical product manufacturing company, for the marketing and sale of certain filtration products based upon Medica’s proprietary Medisulfone ultrafiltration technology in conjunction with the Company’s filtration products (collectively, the “Filtration Products”), and to engage in an exclusive supply arrangement for the Filtration Products. Under the License and Supply Agreement, Medica granted to the Company an exclusive license, with right of sublicense, to market, promote, distribute, offer for sale and sell the Filtration Products worldwide, excluding Italy for the first three years, during the term of the License and Supply Agreement. In addition, the Company granted to Medica an exclusive license under the Company’s intellectual property to make the Filtration Products during the term of the License and Supply Agreement. In exchange for the rights granted, the Company agreed to make minimum annual aggregate purchases from Medica of €300,000 (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 Company’s 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 calendar year 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 Company’s common stock. The fair market value of these stock options was approximately $273,000 as of April 23, 2012, calculated as described in Note 6 under Stock Options. 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 $1,368,000 and $1,473,000, as of June 30, 2016 and December 31, 2015, respectively, related to the License and Supply Agreement. Accumulated amortization is approximately $882,000 and $777,000 as of June 30, 2016 and December 31, 2015, respectively. The asset is being amortized as an expense over the life of the License and Supply Agreement. Approximately $53,000 and $105,000 has been charged to amortization expense for the three and six months ended June 30, 2016 and 2015, respectively on the condensed consolidated statement of operations and comprehensive loss. Approximately $105,000 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. Royalty expense of approximately $14,000 was included in accrued expenses as of June 30, 2016 and December 31, 2015. 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. For the three and six months ended June 30, 2016, approximately $14,000 and $26,000 of interest, respectively, was paid to Medica. For the three and six months ended June 30, 2015, approximately $11,000 and $25,000 of interest, respectively, was paid to Medica. 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 June 30, 2016 is approximately $21,000 related to a security deposit for the U.S. office facility. Rent expense was approximately $38,000 and $28,000 for the three months ended June 30, 2016 and 2015, respectively. Rent expense was approximately $67,000 and $66,000 for the six months ended June 30, 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 sales-type 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 Company’s 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 and six months ended June 30, 2016, approximately $2,000 and $3,000, respectively, was recognized in interest income. As of June 30, 2016, investment in lease, current is approximately $26,000, net of unearned interest of $5,000. As of June 30, 2016, investment in lease, noncurrent, is approximately $68, 000, net of unearned interest of $7,000. As of June 30, 2016, scheduled maturities of minimum lease payments receivable were as follows: 2016 $ 19,000 2017 17,000 2018 18,000 2019 19,000 2020 21,000 94,000 Less: Current portion (26,000 ) Investment in sales-type lease, noncurrent $ 68,000 The Company also invoiced Biocon 1, LLC approximately $11,000 related to consulting services provided during the three and six months ended June 30, 2016 and is included in license, royalty and other revenue on the condensed consolidated statement of operations and comprehensive loss. Approximately $11,000 is also included in accounts receivable as of June 30, 2016.

Basis of Presentation and Goi20

Basis of Presentation and Going Concern (Policies)	6 Months Ended
	Jun. 30, 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 Company’s 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 Company’s audited consolidated financial statements but does not include all disclosures required by GAAP. In the opinion of management, the condensed consolidated interim financial statements reflect all adjustments consisting of normal, recurring adjustments that are necessary for a fair presentation of the financial position, results of operations and cash flows for the condensed consolidated interim periods presented. Interim results are not necessarily indicative of results for a full year. 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 lives of fixed assets and intangible assets, and 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.
Going Concern	Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company’s recurring losses and difficulty in generating sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. The Company’s consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company has incurred significant losses in operations in each quarter 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 of operations and financial condition will be materially and adversely affected. Based on the Company’s current projections, the Company expects that its existing cash balances and projected increase in product sales from the launch of new products, will allow the Company to fund its operations at least into the first quarter of 2017, if not longer, depending on the timing and market uptake of our new products. This assumption excludes the impact of future cash receipts from recurring operations. 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.
Recently Adopted Accounting Pronouncement	Recently Adopted Accounting Pronouncement In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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 annual and interim periods beginning after December 15, 2015. The Company adopted ASU 2015-03 during the three months ended June 30, 2016.

Major Customers and Concentra21

Major Customers and Concentration of Credit Risk (Tables)	6 Months Ended
	Jun. 30, 2016
Sales Revenue Goods Net [Member]
Concentration Risk [Line Items]
Schedules of Concentration of Risk, By Risk Factor	For the three months ended June 30, 2016 and 2015, the following customers accounted for the following percentages of the Company’s revenues, respectively. Customer 2016 2015 A 19 % 3 % B 10 % 31 % C 2 % 23 % For the six months ended June 30, 2016 and 2015, the following customers accounted for the following percentages of the Company’s revenues, respectively. Customer 2016 2015 A 24 % 26 % B 14 % 25 % C 10 % 16 %
Accounts Receivable [Member]
Concentration Risk [Line Items]
Schedules of Concentration of Risk, By Risk Factor	As of June 30, 2016 and December 31, 2015, the following customers accounted for the following percentages of the Company’s accounts receivable, respectively. Customer 2016 2015 A 35 % 37 % B 12 % 11 % C 10 % - % D 4 % 23 %

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Reconciliation of Warrant Liability	A reconciliation of the warrant liability for the three and six month periods ended June 30, 2015 is as follows: 2007 Warrants Balance at March 31, 2015 $ 6,378,000 Increase in fair value of warrant liability 1,196,000 Balance at June 30, 2015 $ 7,574,000 2007 Warrants Balance at December 31, 2014 $ 7,386,000 Increase in fair value of warrant liability 188,000 Balance at June 30, 2015 $ 7,574,000
Fair Value Inputs, Liabilities, Quantitative Information	The following table summarizes the calculated aggregate fair value of the 2007 Warrants, along with the assumptions utilized in each calculation: June 30, 2015 Calculated aggregate value $ 7,574,000 Weighted average exercise price $ 0.30 Closing price per share of common stock $ 0.71 Volatility 135.0 % Weighted average remaining expected life (years) 4.5 Risk-free interest rate 1.6 % Dividend yield -

Net Income (Loss) per Common 23

Net Income (Loss) per Common Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	If applicable for a given period, 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 six months June 30, June 30, June 30, June 30, 2016 2015 2016 2015 Income (loss) per share - Basic: Numerator for basic income (loss) per share $ (835,000 ) $ (1,815,000 ) $ (1,671,000 ) $ (1,572,000 ) Denominator for basic income (loss) per share 48,545,720 31,190,714 48,359,620 30,727,840 Basic income (loss) per common share $ (0.02 ) $ (0.06 ) $ (0.03 ) $ (0.05 ) Income (loss) per share - Diluted: Numerator for diluted income (loss) per share $ (835,000 ) $ (1,815,000 ) $ (1,671,000 ) $ (1,572,000 ) Adjust: Change in fair value of dilutive warrants outstanding - 1,196,000 - 188,000 Numerator for diluted income (loss) per share $ (835,000 ) $ (619,000 ) $ (1,671,000 ) $ (1,384,000 ) Denominator for basic income (loss) per share 48,545,720 31,190,714 48,359,620 30,727,840 Plus: Incremental shares underlying warrants outstanding - - - - Denominator for diluted income (loss) per share 48,545,720 31,190,714 48,359,620 30,727,840 Diluted income (loss) per common share $ (0.02 ) $ (0.06 ) $ (0.03 ) $ (0.05 )
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: June 30, 2016 2015 Shares underlying warrants outstanding 3,291,149 17,667,937 Shares underlying options outstanding 4,222,640 3,634,502 Unvested restricted stock 128,234 -

Inventory, Net (Tables)

Inventory, Net (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory is stated at the lower of cost or market using the first-in first-out method and consists entirely of finished goods. The Company’s inventory as of June 30, 2016 and December 31, 2015 was as follows: June 30, 2016 December 31, 2015 (Unaudited) (Audited) Total Gross Inventory, Finished Goods $ 469,000 $ 634,000 Less: Inventory reserve (56,000 ) (43,000 ) Total Inventory $ 413,000 $ 591,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Maturities Minimum Lease Payments Receivable	As of June 30, 2016, scheduled maturities of minimum lease payments receivable were as follows: 2016 $ 19,000 2017 17,000 2018 18,000 2019 19,000 2020 21,000 94,000 Less: Current portion (26,000 ) Investment in sales-type lease, noncurrent $ 68,000

Organization and Nature of Op26

Organization and Nature of Operations (Details Narrative)	6 Months Ended
	Jun. 30, 2016Products
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of products in development	2

Major Customers and Concentra27

Major Customers and Concentration of Credit Risk (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Risks and Uncertainties [Abstract]
Allowance for doubtful accounts	$ 30	$ 15

Major Customers and Concentra28

Major Customers and Concentration of Credit Risk - Schedules of Concentration of Risk, by Risk Factor (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Customer A [Member] | Sales Revenue Goods Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	19.00%	3.00%	24.00%	26.00%
Customer A [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			35.00%		37.00%
Customer B [Member] | Sales Revenue Goods Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.00%	31.00%	14.00%	25.00%
Customer B [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			12.00%		11.00%
Customer C [Member] | Sales Revenue Goods Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	2.00%	23.00%	10.00%	16.00%
Customer C [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			10.00%		0.00%
Customer D [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			4.00%		23.00%

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Deferred revenue	$ 383		$ 383
Royalty revenue	29	$ 28	57
License Agreement [Member]
Revenue recognized	$ 17	$ 17	$ 34	$ 35
Deferred Revenue, Description			Approximately $35,000 of revenue will be recognized in the remaining six 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 Six Months of Fiscal Year 2016 [Member]
Revenue recognized			$ 35
License Agreement [Member] | December 31, 2017 through 2021 [Member]
Revenue recognized			69
License Agreement [Member] | Bellco [Member]
Revenue recognized			$ 2,640

Fair Value of Financial Instr30

Fair Value of Financial Instruments (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 29, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value Disclosures [Line Items]
Change in fair value of warrant liability			$ 1,196		$ 188
Warrant [Member]
Fair Value Disclosures [Line Items]
Reduced percentage of warrant exercise 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%

Fair Value of Financial Instr31

Fair Value of Financial Instruments - Schedule of Reconciliation of Warrant Liability (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Warrant liability, beginning balance	$ 6,378	$ 7,386
Increase in fair value of warrant liability	1,196	188
Warrant liability, ending balance	$ 7,574	$ 7,574

Fair Value of Financial Instr32

Fair Value of Financial Instruments - Fair Value Inputs, Liabilities, Quantitative Information (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)$ / shares
Fair Value Disclosures [Abstract]
Calculated aggregate value | $	$ 7,574
Weighted average exercise price	$ 0.30
Closing price per share of common stock	$ 0.71
Volatility	135.00%
Weighted average remaining expected life (years)	4 years 6 months
Risk-free interest rate	1.60%
Dividend yield	0.00%

Stock Plans and Share-Based P33

Stock Plans and Share-Based Payments (Details Narrative) - USD ($) $ in Thousands	Jan. 02, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock-based compensation expense		$ 92	$ 90	$ 194	$ 110
Selling, general and administrative		804	735	1,582	1,578
Research and development		254	164	523	355
Total unrecognized compensation cost		1,003		1,003
Unrecognized compensation cost		158		158
Unrecognized compensation remaining amount				$ 845
Amortized over weighted average remaining requisite service period				2 years 7 months 6 days
Fair value of grant data outstanding		41		$ 41
Restricted stock expense		$ 14		$ 38
Consultant [Member]
Number of stock options granted to consultant during period		30,000		30,000
Stock option vesting period		1 year
Fair value of stock options		$ 7
Stock Based Compensation [Member]
Selling, general and administrative		84	84	$ 179	100
Research and development		8	6	15	10
Restricted Stock [Member]
Stock-based compensation expense		35	$ 3	79	$ 9
Total unrecognized compensation cost		5		5
Fair value of grant data outstanding		46		46
Restricted stock expense		21		$ 41
Restricted Stock [Member] | Non Employee Director [Member]
Number of shares issued for services, shares	89,773
Fair value of grant data outstanding	$ 16
Restricted Stock [Member] | Non Employee Services [Member]
Number of shares issued for services, shares				154,527
Fair value of grant data outstanding		$ 46		$ 46

Warrants (Details Narrative)

Warrants (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Warrants [Line Items]
Proceeds from warrant exercises		$ 1	$ 1
Warrant [Member]
Warrants [Line Items]
Issuance of common stock shares for additional warrants exercised	25,112	19,621	46,039
Proceeds from warrant exercises	$ 500	$ 1	$ 1,000
Issuance of common stock	1,160	906	2,127

Net Income (Loss) per Common 35

Net Income (Loss) per Common Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Numerator for basic income (loss) per share	$ (835)	$ (1,815)	$ (1,671)	$ (1,572)
Denominator for basic income (loss) per share	48,545,720	31,190,714	48,359,620	30,727,840
Basic income (loss) per common share	$ (0.02)	$ (0.06)	$ (0.03)	$ (0.05)
Numerator for diluted income (loss) per share	$ (835)	$ (1,815)	$ (1,671)	$ (1,572)
Adjust: Change in fair value of dilutive warrants outstanding		1,196		188
Numerator for diluted income (loss) per share	$ (835)	$ (619)	$ (1,671)	$ (1,384)
Denominator for basic income (loss) per share	48,545,720	31,190,714	48,359,620	30,727,840
Plus: Incremental shares underlying warrants outstanding
Denominator for diluted income (loss) per share	48,545,720	31,190,714	48,359,620	30,727,840
Diluted income (loss) per common share	$ (0.02)	$ (0.06)	$ (0.03)	$ (0.05)

Net Income (Loss) per Common 36

Net Income (Loss) per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded anti-dilutive stock options and warrants	3,291,149	17,667,937
Unvested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded anti-dilutive stock options and warrants	128,234
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded anti-dilutive stock options and warrants	4,222,640	3,634,502

Inventory, Net - Schedule of In

Inventory, Net - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Total Gross Inventory, Finished Goods	$ 469	$ 634
Less: Inventory reserve	(56)	(43)
Total Inventory, net	$ 413	$ 591

Unsecured Promissory Notes an38

Unsecured Promissory Notes and Warrants (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jun. 07, 2016	Jun. 30, 2016	Jun. 30, 2015
Amortization of debt discount		$ 6
Accrued interest expense		10
Entities Controlled By Member Of Management [Member]
Due to related party		30
Majority Shareholder [Member]
Due to related party		$ 300
Note And Warrant Agreement [Member]
Gross proceeds from unsecured promissory notes and warrants	$ 1,187
Percentage of accrues interest rate per annaum	11.00%
Note repayable date	Jun. 7, 2019
Legal fees	$ 13
Proceeds from warrants	393
Unsecured promissory notes	$ 794
Note And Warrant Agreement [Member] | Investors [Member]
Number of warrants issued to purchase of shares of common stock	2,400,000
Warrant exercise price	$ 0.30
Warrants exercisable term	5 years
Warrant Agreement [Member]
Legal fees	$ 4

Commitments and Contingencies39

Commitments and Contingencies (Details Narrative) $ / shares in Units, € in Thousands, $ in Thousands	Oct. 08, 2015USD ($)	Feb. 04, 2013USD ($)	Feb. 04, 2013EUR (€)	May 23, 2013USD ($)	May 23, 2013EUR (€)	Apr. 23, 2012USD ($)	Apr. 23, 2012EUR (€)	Jun. 30, 2016USD ($)Products$ / shares	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Products$ / sharesshares	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2015EUR (€)	Sep. 30, 2013
Commitments And Contingencies [Line Items]
Gross value of the intangible asset capitalized								$ 2,250		$ 2,250
Intangible assets included in other long term assets								1,368		1,368		$ 1,473
Accumulated amortization								882		882		777
Amortization of other deferred charges								53	$ 53	105	$ 105
Amortization expense, years two and three								105		105
Accrued expenses								14		14		14
Interest paid								14	11	$ 26	25
Operating lease expiration date										Nov. 30, 2018
Research and development facilities with monthly cost										$ 9
Security deposit								21		21
Rent expense								38	28	67	66
Investment lease								92		92
Unearned interest								14		14
Interest income								2		3
Investment in lease, net – current portion								26		26
Unearned interest current								5		5
Investment in lease, net – less current portion								68		68
Unearned interest noncurrent								7		7
Consulting services amount								11		11
Accounts receivable								11		11
December 31, 2017 through 2022 [Member]
Commitments And Contingencies [Line Items]
Amortization expense, years two and three								$ 210		$ 210
April 23, 2014 through December 31, 2022 [Member]
Commitments And Contingencies [Line Items]
Royalty rate										3.00%
Bellco [Member]
Commitments And Contingencies [Line Items]
Number of units under first tier royalty receivable | Products								125,000		125,000
First tier royalty per unit | $ / shares								$ 1.95		$ 1.95
Second tier royalty per unit | $ / shares								$ 1.40		$ 1.40
Royalty payable								$ 29	$ 28	$ 57
Bellco [Member] | EUR [Member]
Commitments And Contingencies [Line Items]
Number of units under first tier royalty receivable | Products								125,000		125,000
First tier royalty per unit | $ / shares								$ 1.75		$ 1.75
Second tier royalty per unit | $ / shares								$ 1.25		$ 1.25
Medica Spa [Member]
Commitments And Contingencies [Line Items]
Upfront fees and connection of first amendment												612
License agreement product purchases in year one												400
License agreement product purchases in year two												700
License agreement product purchases in year three												880
Purchase commitment												1,119
License agreement payment												2,000
License agreement first installment payment						$ 700
License agreement second installment payment		$ 800
License agreement final installment payment				$ 500
License agreement options to purchase shares | shares										300,000
Fair value of stock options granted to medica										$ 273
Debt instrument, interest rate, stated percentage														12.00%
Medica Spa [Member] | 2016 [Member]
Commitments And Contingencies [Line Items]
Purchase commitment												$ 1,500
Medica Spa [Member] | EUR [Member]
Commitments And Contingencies [Line Items]
Upfront fees and connection of first amendment | €													€ 450
License agreement product purchases in year one | €													300
License agreement product purchases in year two | €													500
License agreement product purchases in year three | €													750
Purchase commitment | €													999
License agreement payment | €													1,500
License agreement first installment payment | €							€ 500
License agreement second installment payment | €			€ 600
License agreement final installment payment | €					€ 400
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
Lease term	60 months

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Maturities Minimum Lease Payments Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
2,016	$ 19
2,017	17
2,018	18
2,019	19
2,020	21
Total	94
Less: Current portion	(26)
Investment in sales-type lease, noncurrent	$ 68