Nephros (NEPH) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 05, 2017
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	Sep. 30, 2017
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		54,327,213
Trading Symbol	NEPH
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash	$ 150	$ 275
Accounts receivable, net	751	388
Investment in lease, net-current portion	20	27
Inventory, net	581	479
Prepaid expenses and other current assets	107	95
Total current assets	1,609	1,264
Property and equipment, net	49	70
Investment in lease, net-less current portion	50	61
License and supply agreement, net	1,105	1,262
Other asset	11	21
Total assets	2,824	2,678
Current liabilities:
Secured revolving credit facility	563
Accounts payable	436	585
Accrued expenses	343	240
Deferred revenue, current portion	70	70
Total current liabilities	1,412	895
Unsecured long-term note payable, net of debt issuance costs and debt discount of $265 and $349, respectively	922	838
Long-term portion of deferred revenue	225	278
Total liabilities	2,559	2,011
Commitments and Contingencies (Note 14)
Stockholders’ equity:
Preferred stock, $.001 par value; 5,000,000 shares authorized at September 30, 2017 and December 31, 2016; no shares issued and outstanding at September 30, 2017 and December 31, 2016
Common stock, $.001 par value; 90,000,000 shares authorized at September 30, 2017 and December 31, 2016; 54,160,547 and 49,782,797 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	54	50
Additional paid-in capital	122,530	120,835
Accumulated other comprehensive income	76	67
Accumulated deficit	(122,395)	(120,285)
Total stockholders’ equity	265	667
Total liabilities and stockholders’ equity	$ 2,824	$ 2,678

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Debt discount	$ 265	$ 349
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	54,160,547	49,782,797
Common stock, shares outstanding	54,160,547	49,782,797

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net revenues:
Product revenues	$ 841	$ 407	$ 2,316	$ 1,405
License, royalty and other revenues	75	68	193	170
Total net revenues	916	475	2,509	1,575
Cost of goods sold	384	159	1,005	667
Gross margin	532	316	1,504	908
Operating expenses:
Research and development	237	241	744	763
Depreciation and amortization	60	60	178	171
Selling, general and administrative	753	652	2,405	2,234
Total operating expenses	1,050	953	3,327	3,168
Loss from operations	(518)	(637)	(1,823)	(2,260)
Interest expense	(88)	(65)	(218)	(109)
Interest income	1	1	3	4
Other expense	(27)	(5)	(60)	(12)
Net loss	(632)	(706)	(2,098)	(2,377)
Other comprehensive income, foreign currency translation adjustments	1	1	9	1
Total comprehensive loss	$ (631)	$ (705)	$ (2,089)	$ (2,376)
Net loss per common share, basic and diluted	$ (0.01)	$ (0.01)	$ (0.04)	$ (0.05)
Weighted average common shares outstanding, basic and diluted	54,142,791	48,783,097	52,473,518	48,501,810

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2016	$ 50	$ 120,835	$ 67	$ (120,285)	$ 667
Balance, shares at Dec. 31, 2016	49,782,797
Net loss				(2,098)	(2,098)
Cumulative effect of change in accounting principle		12		(12)
Net unrealized gains on foreign currency translation, net of tax			9		9
Issuance of common stock, net of equity issuance costs of $152	$ 4	1,062			1,066
Issuance of common stock, net of equity issuance costs of $152, shares	4,059,994
Issuance of common stock		113			113
Issuance of common stock, shares	300,000
Issuance of restricted stock
Issuance of restricted stock, shares	17,756
Noncash stock-based compensation		508			508
Balance at Sep. 30, 2017	$ 54	$ 122,530	$ 76	$ (122,395)	$ 265
Balance, shares at Sep. 30, 2017	54,160,547

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Statement of Stockholders' Equity [Abstract]
Equity issuance costs	$ 152

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net loss	$ (2,098)	$ (2,377)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment	21	13
Amortization of license and supply agreement, net	157	158
Non-cash stock-based compensation, including stock options and restricted stock	508	442
Non-employee stock-based compensation		46
Non-cash interest expense	84	29
Inventory reserve		27
Allowance for doubtful accounts reserve		33
Loss on foreign currency transactions	16	5
(Increase) decrease in operating assets:
Accounts receivable	(341)	62
Inventory	(102)	241
Prepaid expenses and other current assets	(12)	33
Other assets	10
Increase (decrease) in operating liabilities:
Accounts payable	(166)	(226)
Accrued expenses	105	(18)
Deferred revenue	(53)	(52)
Net cash used in operating activities	(1,871)	(1,584)
Investing activities:
Purchase of property and equipment		(45)
Net cash used in investing activities		(45)
Financing activities:
Proceeds from issuance of common stock, net of equity issuance costs	1,179
Net proceeds from secured revolving credit facility	563
Proceeds from issuance of unsecured note		1,187
Proceeds from exercise of warrants		1
Net cash provided by financing activities	1,742	1,188
Effect of exchange rates on cash	4
Net decrease in cash	(125)	(441)
Cash, beginning of period	275	1,248
Cash, end of period	150	807
Supplemental disclosure of cash flow information
Cash paid for interest	79	39
Cash paid for income taxes	6	2
Supplemental disclosure of noncash investing and financing activities
Fair 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		51
Deposit on inventory reclassified from prepaid expenses and other current assets to inventory		18
Deposit on property and equipment reclassified from prepaid expenses and other current assets to property and equipment		$ 124

Organization and Nature of Oper

Organization and Nature of Operations	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of Operations	Note 1 - Organization and Nature of Operations Nephros, Inc. (“Nephros” or the “Company”) was incorporated under the laws of the State of Delaware on April 3, 1997. Nephros was founded by health professionals, scientists and engineers affiliated with Columbia University to develop advanced End Stage Renal Disease (“ESRD”) therapy technology and products. The Company has two products in the hemodiafiltration (“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 expanded into ultrapure water filtration products as a complement to the ESRD therapy business, introducing its proprietary dual stage ultrafilter architecture. The company has since introduced a variety of ultrafiltration and microfiltration products that address water quality and infection control in both medical and commercial applications. The Company is currently headquartered at 41 Grand Avenue, River Edge, New Jersey 07661, which houses the Company’s executive offices and research facilities, and has a subsidiary, Nephros International Limited, in Dublin, Ireland.

Basis of Presentation and Going

Basis of Presentation and Going Concern	9 Months Ended
	Sep. 30, 2017
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 financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for annual financial statements. Results for the period ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K. Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“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 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. 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 inability to generate 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. To support the Company’s cash needs, management entered into a $1,000,000 secured revolving credit facility with a commercial lender. In addition, the Company has received approval to sell a portion of its New Jersey net operating loss and research and development tax credits through a program administered by the New Jersey Economic Development Authority (“NJEDA”), which the Company anticipates will result in cash proceeds of over $1.75 million during the fourth quarter of 2017. Based on the Company’s existing cash balances, its current cash flow projections, including projected increases in product sales from the launch of new products, and the anticipated proceeds from the NJEDA tax credit program, the Company believes it will have sufficient cash resources to fund its operations through the first half of 2018, if not longer. The Company’s financial projections are subject to a number of uncertainties, including the timing and market acceptance of the Company’s new products and the Company’s ability to obtain the planned proceeds from the NJEDA tax credit program. There can be no assurance that any of such events will occur, or 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 meet its operating requirements and other commitments or obtain the anticipated proceeds from the NJEDA tax credit program, 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	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and 2016, the following customers accounted for the following percentages of the Company’s revenues, respectively: Customer 2017 2016 A 14 % 11 % B 14 % 11 % C 12 % 17 % D 8 % 16 % For the nine months ended September 30, 2017 and 2016, the following customers accounted for the following percentages of the Company’s revenues, respectively: Customer 2017 2016 A 18 % 14 % B 13 % 20 % C 12 % 9 % As of September 30, 2017 and December 31, 2016, the following customers accounted for the following percentages of the Company’s accounts receivable, respectively: Customer 2017 2016 A 16 % 6 % B 13 % 36 % C 1 % 12 % 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 $2,000 and $50,000 as of September 30, 2017 and December 31, 2016, respectively.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2017
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 product is shipped via external logistics provider and the other criteria of ASC Topic 605 are met. Product revenue is recorded net of returns and allowances. Shipments for all products are currently received directly by the Company’s customers. License Agreement Revenue Deferred revenue was approximately $295,000 and $348,000 on the accompanying condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016, respectively, and is related to the Company’s License Agreement with Bellco (see Note 14, below), which is being deferred over the remainder of the expected obligation period. The Company has recognized approximately $2,781,000 of revenue related to the Bellco License Agreement to date and approximately $18,000 and $53,000 for the three and nine months ended September 30, 2017, respectively. The Company recognized approximately $17,000 and $52,000 of revenue related to this License Agreement for the three and nine months ended September 30, 2016, respectively. Approximately $17,000 of revenue will be recognized in the remaining three months of fiscal 2017 and approximately $69,500 of revenue will be recognized in each of the years ended December 31, 2018 through 2021. For the three months ended September 30, 2017 and 2016, the Company recognized royalty revenue from Bellco of approximately $57,000 and $27,000, respectively. For the nine months ended September 30, 2017 and 2016, the Company recognized royalty revenue from Bellco of approximately $115,000 and $84,000, respectively. See Note 14, Commitments and Contingencies, for further discussion of the Bellco License Agreement.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
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 carrying value of the investment in lease, net, approximates fair value as of September 30, 2017.

Stock Plans and Share-Based Pay

Stock Plans and Share-Based Payments	9 Months Ended
	Sep. 30, 2017
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. During the three and nine months ended September 30, 2017, the Company granted stock options to purchase 90,000 shares and 1,088,280 shares, respectively, of common stock to employees. These stock options will be expensed over their respective applicable vesting periods, which are based on service conditions and, for one grant, on performance conditions. The fair value of all stock-based awards granted during the three months ended September 30, 2017 was approximately $20,000. The fair value of all stock-based awards granted during the nine months ended September 30, 2017 was approximately $341,000. The fair value of stock-based awards is amortized over the vesting period of the award. For stock-based awards that vest based on performance conditions (e.g., achievement of certain milestones), expense is recognized when it is probable that the condition will be met. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The below weighted average assumptions for the risk-free interest rates, expected dividend yield, expected lives and expected stock price volatility were used for the awards granted during the nine months ended September 30, 2017. Assumptions for Option Grants Nine Months Ended September 30, 2017 Stock Price Volatility 107.7 % Risk-Free Interest Rates 2.04 % Expected Life (in years) 6.03 Expected Dividend Yield - % The Company calculates expected volatility for a stock-based grant based on historic monthly common stock price observations during the period immediately preceding the grant that is equal in length to the expected term of the grant. 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. As a result of adopting ASU 2016-09, the Company has elected to recognize forfeitures as they occur. Stock-Based Compensation Stock-based compensation expense was approximately $110,000 and $104,000 for the three months ended September 30, 2017 and 2016, respectively. For the three months ended September 30, 2017, approximately $103,000 and approximately $7,000 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 September 30, 2016, approximately $97,000 and approximately $7,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statements of operations and comprehensive loss. Stock-based compensation expense was approximately $323,000 and $299,000 for the nine months ended September 30, 2017 and 2016, respectively. For the nine months ended September 30, 2017, approximately $299,000 and approximately $24,000 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 nine months ended September 30, 2016, approximately $277,000 and approximately $22,000 are included in Selling, General and Administrative expenses and Research and Development expenses, respectively, on the accompanying condensed consolidated statements of operations and comprehensive loss. There was no tax benefit related to expense recognized in the nine months ended September 30, 2017 and 2016, as the Company is in a net operating loss position. As of September 30, 2017, there was approximately $997,000 of total unrecognized compensation cost related to unvested share-based compensation awards granted under the equity compensation plans. Approximately $230,000 of the $997,000 total unrecognized compensation will be recognized at the time that certain performance conditions are met. The remaining unrecognized compensation expense of approximately $767,000 will be amortized over the weighted average remaining requisite service period of 1.8 years. Such amount does not include the effect of future grants of equity compensation, if any. Restricted Stock During the nine months ended September 30, 2017, the Company issued 17,756 shares of restricted stock as compensation for services to its Chief Executive Officer in consideration of deferred cash salary of $7,000. The grant date fair value of the outstanding restricted stock awards was approximately $7,000. Total stock-based compensation expense for restricted stock grants was approximately $3,000 and $110,000 for the three months ended September 30, 2017 and 2016, respectively, and is included in Selling, General and Administrative expenses on the accompanying condensed consolidated statements of operations and comprehensive loss. Total stock-based compensation expense for restricted stock grants was approximately $185,000 and $189,000 for the nine months ended September 30, 2017 and 2016, respectively, and is included in Selling, General and Administrative expenses on the accompanying condensed consolidated statements of operations and comprehensive loss. For the three and nine months ended September 30, 2016, approximately $46,000 of the total stock-based compensation expense recognized for restricted stock grants was related to payment for non-employee services rendered during the respective periods. As of September 30, 2017, there was no unrecognized compensation expense related to the restricted stock awards.

Warrants

Warrants	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Warrants	Note 7 - Warrants There were no warrants exercised during the nine months ended September 30, 2017. For the nine months ended September 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.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	9 Months Ended
	Sep. 30, 2017
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. The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: September 30, 2017 2016 Shares underlying warrants outstanding 7,432,342 3,291,149 Shares underlying options outstanding 5,549,015 4,418,160 Unvested restricted stock - 390,625

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Note 9 – Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 adopted ASU 2015-11 during the three months ended March 31, 2017 and the adoption of this guidance did not have a significant impact on the Company’s 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 was permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company adopted ASU 2015-17 during the three months ended March 31, 2017 and the adoption of this guidance did not have a significant impact on the Company’s consolidated 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 was effective for the Company beginning in the first quarter of fiscal year 2017. Early adoption was permitted. The Company adopted ASU 2016-09 during the three months ended March 31, 2017 and elected to recognize forfeitures as they occur. Prior to the adoption of ASU 2016-09, the Company recognized stock-based compensation based on the estimated fair value of the award, net of expected forfeitures. As of January 1, 2017, a cumulative effect adjustment of approximately $12,000 was recognized to reflect the forfeiture rate that had been applied to unvested option awards prior to fiscal year 2017. Recent Accounting Pronouncements, Not Yet Effective 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 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 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 consolidated 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 who 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 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 assessing the impact of adopting this guidance on its 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 assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which clarifies the implementation guidance for 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 consolidated 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 consolidated 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 assessing the impact of adopting this guidance on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows in order to reduce diversity in practice. The guidance is effective for the Company beginning in the first quarter of fiscal year 2018. Early adoption is permitted. The Company is assessing the impact of adopting this guidance on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-17, “Restricted Cash,” which clarifies how restricted cash is presented and classified in the statement of cash flows. The guidance is effective for the Company beginning in the first quarter of fiscal year 2018. Early adoption is permitted. The Company is assessing the impact of adopting this guidance on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “Clarifying the Definition of a Business,” which clarifies the definition of a business in a business combination. The guidance is effective for the Company beginning in the first quarter of fiscal year 2018. Early adoption is permitted. The Company is assessing the impact of adopting this guidance on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” which simplifies the test for goodwill impairment. The guidance is effective for the Company beginning in the first quarter of fiscal year 2020. Early adoption is permitted for interim or annual goodwill impairments tests after January 1, 2017. The Company is assessing the impact of adopting this guidance on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, “Scope of Modification Accounting,” which clarifies the application of stock based accounting guidance when a change is made to the terms or conditions of a share-based payment award. The guidance is effective for the Company beginning in the first quarter of fiscal year 2018. Early adoption is permitted. The Company is assessing the impact of adopting this guidance on its consolidated financial statements.

Inventory, Net

Inventory, Net	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventory, Net	Note 10 - Inventory, net Inventory is stated at the lower of cost or net realizable value using the standard cost method and consists of raw materials and finished goods. The Company’s inventory as of September 30, 2017 and December 31, 2016 was as follows: September 30, 2017 December 31, 2016 (Unaudited) (Audited) Finished goods $ 559,000 $ 528,000 Raw materials 53,000 $ 0 Less: inventory reserve (31,000 ) (49,000 ) Total inventory, net $ 581,000 $ 479,000

Secured Revolving Credit Facili

Secured Revolving Credit Facility	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Secured Revolving Credit Facility	Note 11 – Secured Revolving Credit Facility On August 17, 2017, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Tech Capital, LLC (the “Lender”). The Loan Agreement provides for a secured asset-based revolving credit facility of up to $1,000,000, which the Company may draw upon and repay from time to time during the term of the Loan Agreement (the “Credit Facility”). As of September 30, 2017, the principal balance of the Credit Facility was approximately $563,000. The Company is using these proceeds for working capital and general corporate purposes. The Loan Agreement has a term of 12 months, which will automatically renew for successive 12-month periods unless cancelled. Availability under the Credit Facility will be based upon periodic borrowing base certifications valuing certain of the Company’s accounts receivable and inventory. Outstanding borrowings under the Credit Facility accrue interest, which shall be payable monthly based on the average daily outstanding balance, at a rate equal to 3.5% plus the prime rate per annum, provided that such prime rate shall not be less than 4.25% per annum. As of September 30, 2017, the current interest rate was 7.75% per annum. The Company also granted to the Lender a first priority security interest in its assets, including its accounts receivable and inventory, to secure all of its obligations under the Credit Facility. In addition, Nephros International Limited, the Company’s wholly-owned subsidiary, unconditionally guaranteed the Company’s obligations under the Credit Facility. In connection with the Loan Agreement, the Company incurred fees of approximately $12,000 related to the issuance of the revolving credit facility. For the three and nine months ended September 30, 2017, approximately $18,000 was recognized as interest expense on the condensed consolidated interim statement of operations and comprehensive loss, which includes the debt issuance costs of approximately $12,000 in addition to interest expense incurred of approximately $6,000 on the revolving facility. As of September 30, 2017, approximately $3,000 of the $6,000 of interest expense incurred is included in accrued expenses on the condensed consolidated interim balance sheet.

Unsecured Promissory Notes and

Unsecured Promissory Notes and Warrants	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Unsecured Promissory Notes and Warrants	Note 12 – Unsecured Promissory Notes and Warrants On June 7, 2016, the Company entered into a Note and Warrant Purchase Agreement (the “2016 Purchase Agreement”) with certain accredited investors identified therein under which the Company issued and sold unsecured promissory notes (“Notes”) and common stock warrants (“Warrants”) resulting in total gross proceeds to the Company of approximately $1,187,000 over multiple closings under the 2016 Purchase Agreement during June 2016. 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 in June 2019, the third anniversary of the date of issuance. In connection with the transactions contemplated by the 2016 Purchase Agreement, the Company incurred approximately $13,000 in legal fees. In addition to the Notes, the Company issued Warrants to purchase approximately 2.4 million shares of the Company’s common stock to the Note investors. The Warrants are exercisable at $0.30 per share for a period of 5 years from the issuance date. The Warrants issued under the 2016 Purchase Agreement are indexed to the Company’s common stock, therefore, the Company is accounting for the Warrants as a component of equity. The approximately $1,187,000 in gross proceeds from the 2016 Purchase 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 gross proceeds 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 gross proceeds of approximately $794,000, net of the remainder of the fees of approximately $9,000, 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 2016 Purchase Agreement. For the three and nine months ended September 30, 2017, approximately $30,000 and $84,000, respectively, was recognized as amortization of debt discount and is included in interest expense on the condensed consolidated interim statement of operations and comprehensive loss. Approximately $23,000 and $29,000 was recognized as amortization of debt discount during the three and nine months ended September 30, 2016, respectively, and is included in interest expense on the condensed consolidated interim statement of operations and comprehensive loss. For the three and nine months ended September 30, 2017, approximately $33,000 and $99,000, respectively, of interest expense has been incurred related to the Notes. For the three and nine months ended September 30, 2016, approximately $33,000 and $43,000, respectively, of interest expense has been incurred related to the Notes. As of September 30, 2017, approximately $45,000 is included in accrued expenses on the condensed consolidated interim balance sheet. As of September 30, 2017 and December 31, 2016, the portion of the outstanding Notes due to entities controlled by a member of management and to the majority shareholder amounted to $30,000 and $300,000, respectively.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Stockholders' Equity	Note 13 – Stockholders’ Equity March 2017 Private Placement On March 22, 2017, the Company entered into a Securities Purchase Agreement with certain accredited investors identified therein pursuant to which the Company issued and sold in a private placement 4,059,994 units of its securities resulting in gross proceeds to the Company of approximately $1,218,000. Each unit consisted of one share of the Company’s common stock and a five-year warrant to purchase one additional share of common stock. The purchase price for each unit was $0.30. The warrants are exercisable at a price of $0.30 per share and are indexed to the Company’s common stock; therefore, the Company is accounting for the warrants as a component of equity. The portion of the gross proceeds received from certain members of management and existing shareholders amounted to $315,000. Proceeds, net of equity issuance costs of $152,000, recorded as a result of the private placement were approximately $1,066,000. In addition to the equity issuance costs incurred as a result of the private placement, the Company also issued a warrant to purchase 81,199 shares of its common stock to the placement agent engaged in connection with the private placement. The form and terms of the placement agent warrant is substantially the same as the form of warrants issued to the investors under the Securities Purchase Agreement, except that the exercise price is $0.33 per share. July 2015 Purchase Agreement and Registration Rights Agreement On July 24, 2015, the Company entered into both a securities purchase agreement and registration rights agreement with Lincoln Park Capital Fund, LLC (“Lincoln Park”), an Illinois limited liability company. Under the terms and subject to the conditions of the securities purchase agreement, the Company has the right to sell to Lincoln Park, and Lincoln Park is obligated to purchase, up to $10.0 million in shares of the Company’s common stock, subject to certain limitations, from time to time, over the 36-month period commencing on September 4, 2015. Pursuant to the securities purchase agreement, in January 2017, the Company issued and sold 300,000 shares of common stock to Lincoln Park resulting in gross proceeds of $113,000.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 14 – 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. 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 the Company’s patented mid-dilution dialysis filters, the OLpur MD 190 and MD 220 (the “Products”). Under the License Agreement, the Company 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 the Company’s 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”) with Bellco. Pursuant to the First Amendment, the Company and Bellco agreed to extend the term of the License Agreement from December 31, 2016 to December 31, 2021. The First Amendment also expands the Territory covered by the License Agreement to include, 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 $1.87 using current exchange rates) per unit; thereafter, €1.25 (approximately $1.34 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. 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, 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. The Company’s aggregate purchase commitments totaled approximately €1,200,000 (approximately $1,300,000) and €999,000 (approximately $1,119,000) for the years ended December 31, 2016 and 2015, respectively. 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 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 value of the options has been capitalized as license and supply agreement, net. The gross value of the intangible asset capitalized was approximately $2,250,000. License and supply agreement, net, on the consolidated balance sheet is approximately $1,105,000 and $1,262,000 as of September 30, 2017 and December 31, 2016, respectively. Accumulated amortization is approximately $1,145,000 and $988,000 as of September 30, 2017 and December 31, 2016, respectively. The asset is being amortized as an expense over the life of the License and Supply Agreement. Approximately $53,000 has been charged to amortization expense for each of the three-month periods ended September 30, 2017 and 2016 on the condensed consolidated statement of operations and comprehensive loss. Approximately $157,000 and $158,000 has been charged to amortization expense for the nine months ended September 30, 2017 and 2016, respectively, on the condensed consolidated statement of operations and comprehensive loss. 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 nine months ended September 30, 2017, approximately $7,000 and $17,000 of interest, respectively, was recognized as interest expense. For the three and nine months ended September 30, 2016, approximately $9,000 and $37,000 of interest, respectively, was recognized as interest expense. On May 5, 2017, the Company entered into a Third Amendment to License and Supply Agreement (the “Third Amendment”) with Medica. Pursuant to the Third Amendment, Medica expanded the products covered by the original License and Supply Agreement to include both certain filtration products based on Medica’s proprietary Versatile microfiber technology and certain filtration products based on Medica’s proprietary Medisulfone ultrafiltration technology (collectively, the “Filtration Products”). The Third Amendment also limits the territory in which Medica granted the Company an exclusive license, with right of sublicense, to market, promote, distribute, offer for sale, and sell the Filtration Products to North America, Central America, Columbia, Venezuela, Chile, Ecuador, Peru, Ireland, the United Kingdom, Australia and New Zealand. The Company’s multinational distributors retain the right to market certain of the products worldwide, other than in Italy, on a non-exclusive basis. In exchange for the rights granted, the Company has agreed to make minimum annual aggregate purchases from Medica of €1,600,000 (approximately $1,700,000 using current exchange rates), €2,500,000 (approximately $2,700,000 using current exchange rates), €3,000,000 (approximately $3,300,000 using current exchange rates), €3,150,000 (approximately $3,400,000 using current exchange rates), €3,300,000 (approximately $3,600,000 using current exchange rates), and €3,475,000 (approximately $3,800,000 using current exchange rates) in each of calendar years 2017, 2018, 2019, 2020, 2021 and 2022, respectively. For the nine months ended September 30, 2017, the Company’s purchase commitments totaled €1,400,000 (approximately $1,650,000 using current exchange rates). On September 26, 2017, the Company entered into a Fourth Amendment to the License and Supply Agreement with Medica which extended the term of the License and Supply Agreement from December 31, 2022 to December 31, 2025, unless earlier terminated by either party in accordance with the terms of the License and Supply Agreement. As a result of the amendment, approximately $33,000 of amortization expense will be recognized in the remainder of 2017 and approximately $134,000 will be recognized in each of the years ended December 31, 2018 through 2025. In exchange for the rights granted, the Company has agreed to make minimum annual aggregate purchases from Medica of €3,625,000 (approximately $4,300,000 using current exchange rates), €3,825,000 (approximately $4,500,000 using current exchange rates), and €4,000,000 (approximately $4,700,000 using current exchange rates) in each of calendar years 2023, 2024, and 2025, respectively. In addition, for the period beginning April 23, 2014 through December 31, 2025, 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 $7,000 and $18,000 in royalties are included in accrued expenses as of September 30, 2017 and December 31, 2016, respectively. 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. The Company intends to terminate this lease on or about December 15, 2017, and to pay an early termination fee of approximately $5,000 during the fourth quarter of 2017. Included in prepaid expenses and other current assets on the condensed consolidated balance sheet as of September 30, 2017 and in other assets as of December 31, 2016 is approximately $21,000 related to a security deposit for the U.S. office facility. Rent expense was approximately $32,000 and $31,000 for the three months ended September 30, 2017 and 2016, respectively. Rent expense was approximately $91,000 and $98,000 for the nine months ended September 30, 2017 and 2016, respectively. The Company has entered into a five-year lease that will commence on or about December 15, 2017 for a new headquarters facility in South Orange, New Jersey, with a monthly cost of $11,000. Included in other assets on the condensed consolidated balance sheet as of September 30, 2017 is $11,000 for a security deposit on this lease. Included in prepaid expenses and other current assets on the condensed consolidated balance sheet as of September 30, 2017 is $11,000 for prepaid rent for this lease. 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 Company’s consolidated statement of cash flows. At lease inception, an investment in lease of approximately $92,000 was recorded, net of unearned interest of approximately $14,000. During the three and nine months ended September 30, 2017, approximately $1,000 and $3,000, respectively, was recognized in interest income. During the three and nine months ended September 30, 2016, approximately $1,000 and $4,000, respectively, was recognized in interest income. As of September 30, 2017, investment in lease, current is approximately $20,000, net of unearned interest of $3,000. As of September 30, 2017, investment in lease, noncurrent, is approximately $50,000, net of unearned interest of $3,000. As of September 30, 2017, scheduled maturities of minimum lease payments receivable were as follows: 2017 $ 11,000 2018 18,000 2019 19,000 2020 22,000 70,000 Less: Current portion (20,000 ) Investment in sales-type lease, noncurrent $ 50,000 Included in the above scheduled maturities of minimum lease payments receivable, approximately $7,000 was due as of September 30, 2017.

Basis of Presentation and Goi22

Basis of Presentation and Going Concern (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interim Financial Information	Interim Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for annual financial statements. Results for the period ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“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 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.
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 inability to generate 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. To support the Company’s cash needs, management entered into a $1,000,000 secured revolving credit facility with a commercial lender. In addition, the Company has received approval to sell a portion of its New Jersey net operating loss and research and development tax credits through a program administered by the New Jersey Economic Development Authority (“NJEDA”), which the Company anticipates will result in cash proceeds of over $1.75 million during the fourth quarter of 2017. Based on the Company’s existing cash balances, its current cash flow projections, including projected increases in product sales from the launch of new products, and the anticipated proceeds from the NJEDA tax credit program, the Company believes it will have sufficient cash resources to fund its operations through the first half of 2018, if not longer. The Company’s financial projections are subject to a number of uncertainties, including the timing and market acceptance of the Company’s new products and the Company’s ability to obtain the planned proceeds from the NJEDA tax credit program. There can be no assurance that any of such events will occur, or 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 meet its operating requirements and other commitments or obtain the anticipated proceeds from the NJEDA tax credit program, 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 Concentra23

Major Customers and Concentration of Credit Risk (Tables)	9 Months Ended
	Sep. 30, 2017
Sales Revenue Goods Net [Member]
Concentration Risk [Line Items]
Schedules of Concentration of Risk, by Risk Factor	For the three months ended September 30, 2017 and 2016, the following customers accounted for the following percentages of the Company’s revenues, respectively: Customer 2017 2016 A 14 % 11 % B 14 % 11 % C 12 % 17 % D 8 % 16 % For the nine months ended September 30, 2017 and 2016, the following customers accounted for the following percentages of the Company’s revenues, respectively: Customer 2017 2016 A 18 % 14 % B 13 % 20 % C 12 % 9 %
Accounts Receivable [Member]
Concentration Risk [Line Items]
Schedules of Concentration of Risk, by Risk Factor	As of September 30, 2017 and December 31, 2016, the following customers accounted for the following percentages of the Company’s accounts receivable, respectively: Customer 2017 2016 A 16 % 6 % B 13 % 36 % C 1 % 12 %

Stock Plans and Share-Based P24

Stock Plans and Share-Based Payments (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Fair Value Assumptions	The below weighted average assumptions for the risk-free interest rates, expected dividend yield, expected lives and expected stock price volatility were used for the awards granted during the nine months ended September 30, 2017. Assumptions for Option Grants Nine Months Ended September 30, 2017 Stock Price Volatility 107.7 % Risk-Free Interest Rates 2.04 % Expected Life (in years) 6.03 Expected Dividend Yield - %

Net Income (Loss) per Common 25

Net Income (Loss) per Common Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following potentially dilutive securities have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: September 30, 2017 2016 Shares underlying warrants outstanding 7,432,342 3,291,149 Shares underlying options outstanding 5,549,015 4,418,160 Unvested restricted stock - 390,625

Inventory, Net (Tables)

Inventory, Net (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Net	The Company’s inventory as of September 30, 2017 and December 31, 2016 was as follows: September 30, 2017 December 31, 2016 (Unaudited) (Audited) Finished goods $ 559,000 $ 528,000 Raw materials 53,000 $ 0 Less: inventory reserve (31,000 ) (49,000 ) Total inventory, net $ 581,000 $ 479,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Maturities Minimum Lease Payments Receivable	As of September 30, 2017, scheduled maturities of minimum lease payments receivable were as follows: 2017 $ 11,000 2018 18,000 2019 19,000 2020 22,000 70,000 Less: Current portion (20,000 ) Investment in sales-type lease, noncurrent $ 50,000

Basis of Presentation and Goi28

Basis of Presentation and Going Concern (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value Disclosures [Line Items]
Secured revolving credit facility	$ 563
Commercial Lender [Member]
Fair Value Disclosures [Line Items]
Secured revolving credit facility	1,000
Short Term Asset-based Credit Facility [Member]
Fair Value Disclosures [Line Items]
Proceeds from line of credit	$ 1,750

Major Customers and Concentra29

Major Customers and Concentration of Credit Risk (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Allowance for doubtful accounts current	$ 2	$ 50

Major Customers and Concentra30

Major Customers and Concentration of Credit Risk - Schedules of Concentration of Risk, by Risk Factor (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Sales Revenue Goods Net [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	14.00%	11.00%	18.00%	14.00%
Sales Revenue Goods Net [Member] | Customer B [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	14.00%	11.00%	13.00%	20.00%
Sales Revenue Goods Net [Member] | Customer C [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	12.00%	17.00%	12.00%	9.00%
Sales Revenue Goods Net [Member] | Customer D [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	8.00%	16.00%
Accounts Receivable [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			16.00%		6.00%
Accounts Receivable [Member] | Customer B [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			13.00%		36.00%
Accounts Receivable [Member] | Customer C [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage			1.00%		12.00%

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Royalty revenue	$ 57,000	$ 27,000	$ 115,000	$ 84,000
License Agreement [Member]
Deferred revenue	295,000		295,000		$ 348,000
Revenue recognized	$ 18,000	$ 17,000	$ 53,000	$ 52,000
Deferred Revenue, Description			Approximately $17,000 of revenue will be recognized in the remaining three months of fiscal year 2017 and approximately $69,500 of revenue will be recognized in each of the years ended December 31, 2018 through 2021.
License Agreement [Member] | Remaining Three Months of Fiscal 2017 [Member]
Revenue recognized			$ 17,000
License Agreement [Member] | December 31, 2018 through 2021 [Member]
Revenue recognized			69,500
Bellco License Agreement [Member]
Revenue recognized			$ 2,781,000

Stock Plans and Share-Based P32

Stock Plans and Share-Based Payments (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock options granted	90,000		1,088,280
Fair value of stock-based awards granted	$ 20		$ 341
Stock-based compensation expense	110	$ 104	323	$ 299
Tax benefit related to expense recognized
Total unrecognized compensation cost	997		997
Unrecognized compensation cost	230		230
Unrecognized compensation remaining amount			$ 767
Amortized over weighted average remaining requisite service period			1 year 9 months 18 days
Restricted Stock [Member]
Stock-based compensation expense	3	110	$ 185	189
Total unrecognized compensation cost
Restricted Stock [Member] | Non-Employee [Member]
Stock-based compensation expense		46		46
Restricted Stock [Member] | Chief Executive Officer [Member]
Number of shares issued for services, shares			17,756
Deferred salary	7		$ 7
Fair value grand data outstanding	7		7
Equity Compensation Plans [Member]
Unrecognized compensation remaining amount			997
Selling General and Administrative Expenses [Member]
Stock-based compensation expense	103	97	299	277
Research and Development Expenses [Member]
Stock-based compensation expense	$ 7	$ 7	$ 24	$ 22

Stock Plans and Share-Based P33

Stock Plans and Share-Based Payments - Schedule of Fair Value Assumptions (Details)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Price Volatility	107.70%
Risk-Free Interest Rates	2.04%
Expected Life (in years)	6 years 11 days
Expected Dividend Yield	0.00%

Warrants (Details Narrative)

Warrants (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Warrants [Line Items]
Proceeds from warrant exercises		$ 1
Warrant [Member]
Warrants [Line Items]
Issuance of common stock shares for additional warrants exercised		19,621
Proceeds from warrant exercises		$ 1
Issuance of common stock		906

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	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded anti-dilutive stock options and warrants	7,432,342	3,291,149
Unvested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded anti-dilutive stock options and warrants		390,625
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded anti-dilutive stock options and warrants	5,549,015	4,418,160

Recent Accounting Pronounceme36

Recent Accounting Pronouncements (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Cumulative effect adjustment
January 1, 2017 [Member]
Cumulative effect adjustment	$ 12

Inventory, Net - Schedule of In

Inventory, Net - Schedule of Inventory, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Finished goods	$ 559	$ 528
Raw materials	53	0
Less: Inventory reserve	(31)	(49)
Total Inventory, net	$ 581	$ 479

Secured Revolving Credit Faci38

Secured Revolving Credit Facility (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Aug. 17, 2017	Dec. 31, 2016
Interest expense	$ 88	$ 65	$ 218	$ 109
Interest expense included in accrued expenses	343		343			$ 240
Loan and Security Agreement [Member] | Tech Capital, LLC [Member]
Secured asset based revolving credit facility, amount	563		$ 563		$ 1,000
Loan agreement, term			12 months
Revolving credit facility insurance fees			$ 12
Interest expense	18		18
Debt issuance costs	12		12
Interest expense included in accrued expenses	$ 3		3
Loan and Security Agreement [Member] | Tech Capital, LLC [Member] | Revolving Credit Facility [Member]
Interest expense			$ 6
Loan and Security Agreement [Member] | Tech Capital, LLC [Member] | Prime Rate [Member]
Line of credit interest rate			3.50%
Loan and Security Agreement [Member] | Tech Capital, LLC [Member] | Prime Rate [Member] | Maximum [Member]
Line of credit interest rate			4.25%

Unsecured Promissory Notes an39

Unsecured Promissory Notes and Warrants (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jun. 07, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Legal fees	$ 9
Interest expense		$ 88	$ 65	$ 218	$ 109
Accrued expenses		343		343		$ 240
Note Holders [Member]
Interest expense		33	33	99	43
Accrued expenses		45		45
Entities Controlled By Member Of Management and Majority Shareholder [Member]
Unsecured promissory note amount		30		30		$ 300
Note and Warrant Purchase Agreement [Member]
Gross proceeds from unsecured promissory notes and warrants	$ 1,187
Percentage of accrues interest rate per annum	11.00%
Note repayable date	Jun. 7, 2019
Legal fees	$ 13
Proceeds from warrant agreement	1,187
Proceeds from warrants	393
Unsecured promissory notes	$ 794
Amortization of debt discount		$ 30	$ 23	$ 84	$ 29
Note and Warrant Purchase Agreement [Member] | Investors [Member]
Number of warrants issued to purchase of shares of common stock	2,400,000
Exercise price per share	$ 0.30
Warrants exercisable term	5 years
2016 Purchase Agreement [Member]
Legal fees	$ 4

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Mar. 22, 2017	Jul. 24, 2015	Sep. 30, 2017
Class of Stock [Line Items]
Stock issued during period, value, new issues			$ 1,066
Lincoln Park Capital Fund LLC [Member]
Class of Stock [Line Items]
Number of common stock shares sold during the period			300,000
Gross proceeds from issuance of private placement			$ 113
Stock issued during period, value, new issues		$ 10,000
Limited liability company description for purchase shares level		Under the terms and subject to the conditions of the securities purchase agreement, the Company has the right to sell to Lincoln Park, and Lincoln Park is obligated to purchase, up to $10.0 million in shares of the Company’s common stock, subject to certain limitations, from time to time, over the 36-month period commencing on September 4, 2015.
Private Placement [Member]
Class of Stock [Line Items]
Number of common stock shares sold during the period	4,059,994
Gross proceeds from issuance of private placement	$ 1,218
Warrants description	Each unit consisted of one share of the Company’s common stock and a five-year warrant to purchase one additional share of common stock.
Shares issued price per share	$ 0.30
Proceeds received from certain members of management and existing shareholders	$ 315
Proceeds of equity issuance costs net	152
Proceeds from private placement	$ 1,066
Number of warrants to placement agent	81,199
Exercise price per share	$ 0.33

Commitments and Contingencies41

Commitments and Contingencies (Details Narrative)

Oct. 08, 2015USD ($)

May 23, 2013USD ($)

May 23, 2013EUR (€)

Feb. 04, 2013USD ($)

Feb. 04, 2013EUR (€)

Apr. 23, 2012USD ($)

Apr. 23, 2012EUR (€)

Sep. 30, 2017USD ($)Products$ / shares

Sep. 30, 2016USD ($)

Sep. 30, 2017USD ($)Products$ / sharesshares

Sep. 30, 2017EUR (€)shares

Sep. 30, 2016USD ($)

Dec. 31, 2016USD ($)

Dec. 31, 2016EUR (€)

Dec. 31, 2015USD ($)

Dec. 31, 2015EUR (€)

Dec. 31, 2014USD ($)

Dec. 31, 2014EUR (€)

Dec. 31, 2013USD ($)

Dec. 31, 2013EUR (€)

Dec. 31, 2012USD ($)

Dec. 31, 2012EUR (€)

Sep. 30, 2017EUR (€)Products€ / shares

Sep. 26, 2017USD ($)

Sep. 26, 2017EUR (€)

May 05, 2017USD ($)

May 05, 2017EUR (€)

Sep. 30, 2013

Commitments And Contingencies [Line Items]

Long-term intangible asset

$ 2,250,000

$ 2,250,000

Other long-term assets

1,105,000

1,105,000

$ 1,262,000

Accumulated amortization

1,145,000

1,145,000

988,000

Amortization of other deferred charges

53,000

$ 53,000

157,000

$ 158,000

Interest expense

7,000

9,000

17,000

37,000

Accrued expenses

7,000

$ 7,000

18,000

Lease expiration date

expires on November 30, 2018

expires on November 30, 2018

Monthly rent expense

$ 9,000

Security deposit

21,000

21,000

21,000

Rent expense

32,000

31,000

$ 91,000

98,000

Lease term

5 years

5 years

Lease monthly cost

$ 11,000

Interest income

1,000

$ 1,000

3,000

$ 4,000

Investment in lease, net - current portion

20,000

20,000

Unearned interest current

3,000

3,000

Investment in lease, net - less current portion

50,000

50,000

Unearned interest noncurrent

3,000

3,000

Minimum lease payments receivable

70,000

70,000

Minimum [Member]

Commitments And Contingencies [Line Items]

Minimum lease payments receivable

7,000

7,000

Equipment Lease Agreement [Member]

Commitments And Contingencies [Line Items]

Investment lease

$ 92,000

Unearned interest

14,000

Equipment Lease Agreement [Member] | Biocon 1, LLC [Member]

Commitments And Contingencies [Line Items]

Monthly rent expense

$ 1,800

Lease term

60 months

License and Supply Agreement [Member]

Commitments And Contingencies [Line Items]

Amortization expense remainder fiscal year

$ 33,000

December 15, 2017 [Member]

Commitments And Contingencies [Line Items]

Security deposit

11,000

11,000

Prepaid rent

$ 11,000

11,000

Fourth Quarter of 2017 [Member]

Commitments And Contingencies [Line Items]

Termination Fees

$ 5,000

December 31, 2018 through 2025 [Member] | License and Supply Agreement [Member]

Commitments And Contingencies [Line Items]

Amortization expense remainder fiscal year

134,000

Bellco [Member]

Commitments And Contingencies [Line Items]

Number of units under first tier royalty receivable | Products

125,000

125,000

125,000

First tier royalty per unit | $ / shares

$ 1.87

$ 1.87

Second tier royalty per unit | $ / shares

$ 1.34

$ 1.34

Bellco [Member] | EUR [Member]

Commitments And Contingencies [Line Items]

Number of units under first tier royalty receivable | Products

125,000

125,000

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

$ 880,000

$ 700,000

$ 400,000

Purchase commitment

$ 1,300,000

$ 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] | 2023 [Member]

Commitments And Contingencies [Line Items]

Foreign currency current exchange rates translation

4,300,000

Medica Spa [Member] | 2024 [Member]

Commitments And Contingencies [Line Items]

Foreign currency current exchange rates translation

4,500,000

Medica Spa [Member] | 2025 [Member]

Commitments And Contingencies [Line Items]

Foreign currency current exchange rates translation

$ 4,700,000

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 | €

€ 750,000

€ 500,000

€ 300,000

Purchase commitment | €

€ 1,200,000

€ 999,000

License agreement payment | €

€ 1,500,000

License agreement first installment payment | €

€ 500,000

License agreement second installment payment | €

€ 600,000

License agreement final installment payment | €

€ 400,000

Medica Spa [Member] | EUR [Member] | 2023 [Member]

Commitments And Contingencies [Line Items]

Aggregate purchase price | €

€ 3,625,000

Medica Spa [Member] | EUR [Member] | 2024 [Member]

Commitments And Contingencies [Line Items]

Aggregate purchase price | €

3,825,000

Medica Spa [Member] | EUR [Member] | 2025 [Member]

Commitments And Contingencies [Line Items]

Aggregate purchase price | €

€ 4,000,000

Medica [Member]

Commitments And Contingencies [Line Items]

Foreign currency current exchange rates translation

$ 1,650,000

$ 1,650,000

Medica [Member] | 2018 [Member]

Commitments And Contingencies [Line Items]

Foreign currency current exchange rates translation

$ 2,700,000

Medica [Member] | 2019 [Member]

Commitments And Contingencies [Line Items]

Foreign currency current exchange rates translation

3,300,000

Medica [Member] | 2017 [Member]

Commitments And Contingencies [Line Items]

Foreign currency current exchange rates translation

1,700,000

Medica [Member] | 2020 [Member]

Commitments And Contingencies [Line Items]

Foreign currency current exchange rates translation

3,400,000

Medica [Member] | 2021 [Member]

Commitments And Contingencies [Line Items]

Foreign currency current exchange rates translation

3,600,000

Medica [Member] | 2022 [Member]

Commitments And Contingencies [Line Items]

Foreign currency current exchange rates translation

$ 3,800,000

Medica [Member] | April 23, 2014 through December 31, 2025 [Member]

Commitments And Contingencies [Line Items]

Royalty rate

3.00%

3.00%

Medica [Member] | EUR [Member]

Commitments And Contingencies [Line Items]

Aggregate purchase price | €

€ 1,400,000

Medica [Member] | EUR [Member] | 2018 [Member]

Commitments And Contingencies [Line Items]

Aggregate purchase price | €

€ 2,500,000

Medica [Member] | EUR [Member] | 2019 [Member]

Commitments And Contingencies [Line Items]

Aggregate purchase price | €

3,000,000

Medica [Member] | EUR [Member] | 2020 [Member]

Commitments And Contingencies [Line Items]

Aggregate purchase price | €

3,150,000

Medica [Member] | EUR [Member] | 2017 [Member]

Commitments And Contingencies [Line Items]

Aggregate purchase price | €

1,600,000

Medica [Member] | EUR [Member] | 2021 [Member]

Commitments And Contingencies [Line Items]

Aggregate purchase price | €

3,300,000

Medica [Member] | EUR [Member] | 2022 [Member]

Commitments And Contingencies [Line Items]

Aggregate purchase price | €

€ 3,475,000

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Maturities Minimum Lease Payments Receivable (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 11,000
2,018	18,000
2,019	19,000
2,020	22,000
Total	70,000
Less: Current portion	(20,000)	$ (27,000)
Investment in sales-type lease, noncurrent	$ 50,000	$ 61,000