Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 12, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | SECOND SIGHT MEDICAL PRODUCTS INC | ||
Entity Central Index Key | 0001266806 | ||
Trading Symbol | eyes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 59 | ||
Entity Common Stock, Shares Outstanding (in shares) | 124,197,961 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 4,471 | $ 7,839 |
Accounts receivable, net | 504 | 1,831 |
Inventories, net | 3,250 | 2,700 |
Prepaid expenses and other current assets | 1,395 | 795 |
Total current assets | 9,620 | 13,165 |
Property and equipment, net | 1,025 | 1,299 |
Deposits and other assets | 37 | 33 |
Total assets | 10,682 | 14,497 |
Current liabilities: | ||
Accounts payable | 1,305 | 752 |
Accrued expenses | 2,503 | 2,425 |
Accrued compensation expense | 2,690 | 2,611 |
Accrued clinical trial expenses | 933 | 779 |
Contract liabilities | 167 | 48 |
Total current liabilities | 7,598 | 6,615 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, no par value, 10,000 shares authorized; none outstanding | ||
Common stock, no par value; 200,000 shares authorized; shares issued and outstanding: 76,336 and 57,630 at December 31, 2018 and December 31, 2017, respectively | 229,019 | 202,156 |
Common stock issuable | 153 | |
Additional paid-in capital | 44,111 | 40,522 |
Accumulated other comprehensive loss | (575) | (572) |
Accumulated deficit | (269,471) | (234,377) |
Total stockholders’ equity | 3,084 | 7,882 |
Total liabilities and stockholders’ equity | $ 10,682 | $ 14,497 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, no par value (in dollars per share) | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, no par value (in dollars per share) | ||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 76,336,000 | 57,630,000 |
Common stock, shares outstanding (in shares) | 76,336,000 | 57,630,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 6,896 | $ 7,964 | $ 3,985 |
Cost of sales | 4,888 | 5,117 | 10,076 |
Gross profit (loss) | 2,008 | 2,847 | (6,091) |
Operating expenses: | |||
Research and development, net of grants | 10,005 | 7,893 | 5,347 |
Clinical and regulatory | 4,600 | 3,062 | 2,703 |
Selling and marketing | 11,336 | 9,569 | 8,989 |
General and administrative | 10,692 | 10,932 | 10,080 |
Restructuring charges | 555 | ||
Total operating expenses | 37,188 | 31,456 | 27,119 |
Loss from operations | (35,180) | (28,609) | (33,210) |
Interest income | 86 | 93 | 31 |
Net loss | $ (35,094) | $ (28,516) | $ (33,179) |
Net loss per common share – basic and diluted | $ (0.53) | $ (0.53) | $ (0.84) |
Weighted average shares outstanding – basic and diluted | 66,378 | 54,152 | 39,554 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||
Net loss | $ (8,858) | $ (8,522) | $ (7,961) | $ (9,753) | $ (7,409) | $ (6,716) | $ (6,843) | $ (7,548) | $ (35,094) | $ (28,516) | $ (33,179) |
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | (3) | 36 | (27) | ||||||||
Comprehensive loss | $ (35,097) | $ (28,480) | $ (33,206) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Common Stock Issuable [Member] | Additional Paid-in Capital [Member] | Notes Receivable for Stock Option Exercises [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Balance beginning at Dec. 31, 2015 | $ 20,263 | $ 166,049 | $ 205 | $ 27,277 | $ (5) | $ (581) | $ (172,682) |
Balance beginning (in shares) at Dec. 31, 2015 | 35,942,000 | 33,000 | |||||
Issuance of common stock and options in connection with rights offering, net of issuance costs | 19,483 | $ 19,430 | 53 | ||||
Issuance of common stock and options in connection with rights offering net of issuance costs (in shares) | 5,978,000 | ||||||
Issuance of shares under Long-Term Investor Right (in shares) | 355,000 | ||||||
Issuance of common stock in connection with employee stock purchase plan | 488 | $ 488 | |||||
Issuance of common stock in connection with Employee Stock Purchase Plan (in shares) | 189,000 | ||||||
Exercise of stock options | 481 | $ 478 | 3 | ||||
Exercise of stock options (in shares) | 96,000 | ||||||
Stock-based compensation expense | 3,367 | 3,367 | |||||
Common stock issuance for services | $ 272 | $ 324 | $ (52) | ||||
Common stock issuance for services (in shares) | 82,000 | 82,000 | 44,000 | ||||
Release of restricted stock units (in shares) | 59,000 | ||||||
Comprehensive loss: | |||||||
Net loss | $ (33,179) | (33,179) | |||||
Foreign currency translation adjustments | (27) | (27) | |||||
Comprehensive loss | (33,206) | (27) | (33,179) | ||||
Balance ending at Dec. 31, 2016 | 11,148 | $ 186,769 | $ 153 | 30,697 | (2) | (608) | (205,861) |
Balance ending (in shares) at Dec. 31, 2016 | 42,701,000 | 77,000 | |||||
Issuance of common stock and options in connection with rights offering, net of issuance costs | 19,668 | $ 13,647 | 6,021 | ||||
Issuance of common stock and options in connection with rights offering net of issuance costs (in shares) | 13,653,000 | ||||||
Issuance of common stock, net of issuance costs | 1,084 | $ 1,084 | |||||
Issuance of shares common stock, net of issuance costs (in shares) | 598,000 | ||||||
Issuance of common stock in connection with employee stock purchase plan | 394 | $ 394 | |||||
Issuance of common stock in connection with Employee Stock Purchase Plan (in shares) | 407,000 | ||||||
Repayment of notes receivable for stock option exercises, net | 2 | $ 2 | |||||
Stock-based compensation expense | 3,784 | 3,784 | |||||
Fair value of stock options issuedfor services | 20 | 20 | |||||
Common stock issuance for services | $ 262 | $ 262 | |||||
Common stock issuance for services (in shares) | 223,000 | 223,000 | 5,000 | ||||
Release of restricted stock units (in shares) | 48,000 | ||||||
Comprehensive loss: | |||||||
Net loss | $ (28,516) | (28,516) | |||||
Foreign currency translation adjustments | 36 | 36 | |||||
Comprehensive loss | (28,480) | 36 | (28,516) | ||||
Balance ending at Dec. 31, 2017 | $ 7,882 | $ 202,156 | $ 153 | 40,522 | (572) | (234,377) | |
Balance ending (in shares) at Dec. 31, 2017 | 57,630,000 | 57,630,000 | 82,000 | ||||
Issuance of common stock, net of issuance costs | $ 25,936 | $ 25,936 | |||||
Issuance of shares common stock, net of issuance costs (in shares) | 17,949,000 | ||||||
Issuance of common stock in connection with employee stock purchase plan | 508 | $ 508 | |||||
Issuance of common stock in connection with Employee Stock Purchase Plan (in shares) | 494,000 | ||||||
Exercise of stock options | 149 | $ 149 | |||||
Exercise of stock options (in shares) | 76,000 | ||||||
Stock-based compensation expense | 3,589 | 3,589 | |||||
Issuance of common stock in connection with warrant exercise | 8 | $ 8 | |||||
Issuance of common stock in connection with warrant exercise (in shares) | 6,000 | ||||||
Common stock issuance for services | 109 | $ 262 | $ (153) | ||||
Common stock issuance for services (in shares) | 132,996 | (82,000) | |||||
Release of restricted stock units (in shares) | 48,000 | ||||||
Comprehensive loss: | |||||||
Net loss | (35,094) | (35,094) | |||||
Foreign currency translation adjustments | (3) | (3) | |||||
Comprehensive loss | (35,097) | (3) | (35,094) | ||||
Balance ending at Dec. 31, 2018 | $ 3,084 | $ 229,019 | $ 44,111 | $ (575) | $ (269,471) | ||
Balance ending (in shares) at Dec. 31, 2018 | 76,336,000 | 76,336,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (35,094) | $ (28,516) | $ (33,179) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization of property and equipment | 435 | 457 | 432 |
Loss on disposal of property and equipment | 2 | ||
Stock-based compensation | 3,589 | 3,784 | 3,367 |
Bad debt (recovery) expense | 107 | (142) | 258 |
Excess inventory (recovery) reserve | 619 | (3,106) | 4,728 |
Common stock issued for services | 109 | 262 | 272 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,220 | (1,413) | 955 |
Inventories | (1,178) | 3,868 | 10 |
Prepaid expenses and other assets | (605) | (71) | 378 |
Accounts payable | 554 | (419) | 446 |
Accrued expenses | 80 | 331 | 44 |
Accrued compensation expenses | 80 | 1,013 | (469) |
Accrued clinical trial expenses | 153 | 150 | 13 |
Contract liabilities | 121 | (41) | (234) |
Deferred grant revenue | (104) | (2,093) | |
Net cash used in operating activities | (29,810) | (23,947) | (25,070) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (163) | (265) | (490) |
Net cash used in investing activities | (163) | (265) | (490) |
Cash flows from financing activities: | |||
Net proceeds from sale of common stock | 25,936 | 20,772 | 19,483 |
Proceeds from exercise of options, warrants and employee stock purchase plan options | 665 | 396 | 969 |
Net cash provided by financing activities | 26,601 | 21,168 | 20,452 |
Effect of exchange rate changes on cash and cash equivalents | 4 | 8 | 23 |
Cash and cash equivalents: | |||
Net decrease | (3,368) | (3,036) | (5,085) |
Balance at beginning of year | 7,839 | 10,875 | 15,960 |
Balance at end of year | $ 4,471 | 7,839 | 10,875 |
Non-cash financing and investing activities: | |||
Fair value of stock options issued for services rendered in connection with rights offering | $ 20 | $ 53 |
Organization and Business Opera
Organization and Business Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business Operations | 1. Organization and Business Operations Second Sight Medical Products, Inc. (“Second Sight” or “the Company”), was incorporated in the State of California in 2003. We develop, manufacture and market implantable visual prosthetics that are intended to deliver useful artificial vision to blind individuals. We are a recognized global leader in neuromodulation devices for blindness, and are committed to developing new technologies to treat the broadest population of sight-impaired In 2007, Second Sight formed Second Sight (Switzerland) Sàrl, initially to manage clinical trials for its products in Europe, and later to manage sales and marketing in Europe, the Middle East and Asia Pacific. As the laws of Switzerland require at least two corporate stockholders, Second Sight (Switzerland) Sàrl is 99.5% owned directly by us and 0.5% owned by an executive of Second Sight, who is acting as our nominee. Accordingly, Second Sight (Switzerland) Sàrl, is considered 100% owned for financial statement purposes and is consolidated with Second Sight for all periods presented. Our current product, the Argus II system, entered clinical trials in 2006, received CE Mark approval for marketing and sales in the European Union (“EU”) in 2011, and approval by the United States Food and Drug Administration (“FDA”) for marketing and sales in the United States in 2013. We began selling the Argus II system in Europe at the end of 2011, Saudi Arabia in 2012, the United States and Canada in 2014, Turkey in 2015, Iran, Taiwan, South Korea and Russia in 2017, and Singapore in 2018. Capital Funding From inception, our operations have been funded primarily through the sales of our common stock and warrants, as well as from the issuance of convertible debt, research and clinical grants, and limited product revenue generated from the sale of our Argus II product. During 2016 and 2017 and 2018, we funded our business primarily through: ● Issuance of common stock in our rights offering in June 2016, which provided net cash proceeds of $19.5 million. ● Issuance of common stock and warrants in our rights offering in March 2017, which provided net cash proceeds of $19.7 million. ● Issuance of common stock through our At Market Issuance Sales Agreement during the fourth quarter of 2017 and first quarter of 2018, which provided $5.1 million of net cash proceeds. ● Issuance of common stock in a stock purchase agreement in May, August, October and December 2018, which provided net cash proceeds of $22.0 million. ● Revenue of $6.9 million, $8.0 million and $4.0 million, for the years ended December 31, 2018, 2017 and 2016, respectively, generated by sales of our Argus II product. We entered into stock purchase agreements on December 12, 2018, October 18, 2018, August 14, 2018 and May 3, 2018 with entities beneficially owned by Gregg Williams for the purchase of 3,275,100, 2,467,727, 3,225,807 and 6,756,757 shares respectively of common stock priced at $0.916, $1.62, $1.55 and $1.48 per share respectively, the last reported sale price of the common stock on each purchase date. Gregg Williams is Chairman of the Board of Directors of Second Sight. These placements of common stock provided net proceeds of $3.0 million, $4.0 million, $5.0 million and $10.0 million, respectively. No warrants or discounts were provided and no placement agent or investment banking fees were incurred in connection with these transactions. The shares issuable to the purchasers under the Securities Purchase Agreements were issued pursuant to an exemption from registration under Rule 506 of Regulation D, which is promulgated under the Securities Act of 1933. We relied on this exemption from registration based in part on representations made by the purchasers. In a Rights Offering completed on February 22, 2019 we sold approximately 47.8 million units, each priced at $0.724 for gross proceeds of approximately $34.6 million. Each unit consisted of one share and one immediately exercisable warrant having a strike price of $1.47 per share. Entities controlled by Gregg Williams, our Chairman of the Board of Directors, acquired approximately 41.4 million units in the offering for an aggregate investment of approximately $30 million. In November 2017, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley FBR Inc. and H.C. Wainwright & Co., LLC, as agents (“Agents”) pursuant to which we may offer and sell, from time to time through either of the Agents, shares of our common stock having an aggregate offering price as set forth in the Sales Agreement and a related prospectus supplement filed with the SEC. We agreed to pay the Agents a cash commission of 3.0% of the aggregate gross proceeds from each sale of shares under the Sales Agreement. During December 2017, we issued 598,276 shares of common stock for gross proceeds of approximately $1.2 million as part of our At Market Issuance Sales Agreement. During January and February 2018, we sold 2.2 million shares of common stock which provided net proceeds of $4.0 million under the Sales Agreement. No shares have been sold since February 2018 under the Sales Agreement. We are subject to the risks and uncertainties associated with a business with one product line and limited commercial product revenues, including limitations on our operating capital resources and uncertain demand for our products. We have incurred recurring operating losses and negative operating cash flows since inception, and we expect to continue to incur operating losses and negative operating cash flows for at least the next few years. On January 25, 2019, we received a letter from The Nasdaq Stock Market advising us that for 30 consecutive trading days preceding the date of the letter, the bid price of our common stock had closed below the $1.00 per share minimum required for continued listing on The Nasdaq Capital Market pursuant to listing rules, and therefore we could become subject to delisting if we did not regain compliance within the compliance period (or the compliance period as may be extended). Based on our current plans, we have sufficient funds to continue operating our business at current levels for at least twelve months from the date of issuance of these financial statements. However, our operating plan may change as a result of many factors currently unknown to us, and we may need to seek additional funds sooner than planned, through public or private equity offerings or debt financings, grants, collaborations, strategic partnerships or other sources. However, we may be unable to raise additional capital or enter into such other arrangements when needed on favorable terms or at all. If we are unable to obtain funding on a timely basis, we may be required to significantly curtail, delay or discontinue one or more of our research or development programs or the commercialization Argus II or any other approved product candidates, or we may be unable to expand our operations, maintain our current organization and employee base or otherwise capitalize on our business opportunities, as desired, which could materially affect our business, financial condition and results of operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and include the financial statements of Second Sight and Second Sight Switzerland. Intercompany balances and transactions 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 at the date of the financial statements and the reported amounts of expenses during the reporting period. We base our estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Significant estimates include those related to assumptions used in accruals for potential liabilities, valuing equity instruments issued for services, and the realization of deferred tax assets. Actual results could differ from those estimates Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. Cash is carried at cost, which approximates fair value, and cash equivalents are carried at fair value. We generally invests funds that are in excess of current needs in high credit quality instruments such as money market funds. Accounts receivable Trade accounts receivable are stated net of an allowance for doubtful accounts. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers or interest on past due amounts. We estimate the allowance for doubtful accounts based on review and analysis of specific customer balances that may not be collectible and how recently payments have been received. Accounts are considered for write-off when they become past due and when it is determined that the probability of collection is remote. Allowance for doubtful accounts amounted to approximately $0.2 million and $0.1 million at December 31, 2018 and 2017, respectively. Inventories Inventories are stated at the lower of cost or net realizable value determined by the first-in, first-out method. Inventories consist primarily of raw materials, work in progress and finished goods, which includes all direct material, labor and other overhead costs. We establish a reserve to mark down our inventory for estimated unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about the usability of the inventory, future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserve may be required. Property and Equipment Property and equipment are recorded at historical cost less accumulated depreciation and amortization. Improvements are capitalized, while expenditures for maintenance and repairs are charged to expense as incurred. Upon disposal of depreciable property, the appropriate property accounts are reduced by the related costs and accumulated depreciation. The resulting gains and losses are reflected in the consolidated statements of operations. Depreciation is provided for using the straight-line method in amounts sufficient to relate the cost of assets to operations over their estimated service lives. Leasehold improvements are amortized over the shorter of the life of the asset or the related lease term. Estimated useful lives of the principal classes of assets are as follows: Lab equipment 5 – 7 years Computer hardware and software 3 – 7 years Leasehold improvements 2 – 5 years or the term of the lease, if shorter Furniture, fixtures and equipment 5 – 10 years We review our property and equipment for impairment annually or whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. There were no impairment losses recognized in 2018, 2017, and 2016. Depreciation and amortization of property and equipment amounted to $0.4 million, $0.5 million and $0.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. Research and Development Research and development costs are charged to operations in the period incurred and amounted to $10.0 million, $7.9 million and $5.3 million net of grant revenue, for the years ended December 31, 2018, 2017 and 2016, respectively. Patent Costs Revenue Recognition We generate our revenue from the sale of our Argus II retinal prosthesis systems, which include the implant and external components. Our product sales generally consist of the implant and related surgical supplies and may include a performance obligation related to post-surgical support. We sell our products through two main sales channels: 1) directly to customers who use our products (the “Direct Channel”) and 2) to distribution partners who resell our products (the “Indirect Channel”). Under the Direct Channel, we sell our systems to and we receive payment directly from customers who implant our products. Under our Indirect Channel, we have entered into distribution agreements that allow the distributors to sell our systems and fulfill performance obligations for surgical support and post-surgical support. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Revenue is generally recognized upon surgical implant, unless we have a significant performance obligation for post-surgical support. We recognize revenue when a material reversal is no longer probable. Conditions that preclude us from recognizing revenue generally involve new customers with no reimbursement or reimbursement history, and depends on third-party behavior beyond our control, uncertain payment cycles over an extended period of time, and our limited historical experience with these arrangements. Grant Receipts and Liabilities From time to time, we receive grants that help fund specific development programs. Any amounts received pursuant to grants are offset against the related operating expenses as the costs are incurred. During the years ended December 31, 2018, 2017 and 2016 grants offset against operating expenses were $0.2 million, $0.4 million and $2.4 million, respectively. Concentration of Risk Credit Risk Financial instruments that subject us to concentrations of credit risk consist primarily of cash, money market funds, and trade accounts receivable. We maintain cash and money market funds with financial institutions that management deems reputable, and at times, cash balances may be in excess of FDIC and SIPC insurance limits of $250,000 and $500,000 (including cash of $250,000), respectively. We extend differing levels of credit to customers, and typically do not require collateral. We also maintain a cash balance at a bank in Switzerland. Accounts at such bank are insured up to an amount specified by the deposit insurance agency of Switzerland. Customer Concentration The following tables provide information about disaggregated revenue by service type, customer and geographical market. The following table shows our revenues by customer type during the years ended December 31, 2018, 2017 and 2016 (in thousands): 2018 2017 2016 Direct customers $ 5,694 $ 6,727 $ 3,822 Indirect channel 1,202 1,237 163 Total $ 6,896 $ 7,964 $ 3,985 During the year ended December 31, 2018 two customers represented 10% of revenue. During the years ended December 31, 2017 and 2016 one customer represented 10% and 13% of revenue respectively. No other customer represented 10% or more of revenue in any year. As of December 31, 2018 and 2017, the following customers comprised more than 10% accounts receivable: 2018 2017 Customer 1 55 % — % Customer 2 22 % 8 % Customer 3 21 % 8 % Customer 4 — % 17 % Customer 5 — % 16 % Customer 6 — % 11 % Geographic Concentration During the years ended December 31, 2018, 2017 and 2016, regional revenue, based on customer locations which comprised more than 10% of revenues, consisted of the following: 2018 2017 2016 United States 56 % 53 % 47 % Italy 10 % 13 % 17 % France 10 % 8 % 9 % Germany 4 % 3 % 12 % Sources of Supply Several of the components, materials and services used in our current Argus II product are available from only one supplier, and substitutes for these items cannot be obtained easily or would require substantial design or manufacturing modifications. Any significant problem experienced by one of our sole source suppliers could result in a delay or interruption in the supply of components to us until that supplier cures the problem or an alternative source of the component is located and qualified. Even where we could qualify alternative suppliers, the substitution of suppliers may be at a higher cost and cause time delays that impede the commercial production of the Argus II, reduce gross profit margins and impact our ability to deliver our products as may be timely required to meet demand. Foreign Operations The accompanying consolidated financial statements as of December 31, 2018 and 2017 include assets amounting to approximately $1.5 Fair Value of Financial Instruments The authoritative guidance with respect to fair value establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required. Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that we have the ability to access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active-exchange traded securities and exchange-based derivatives. Level 2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange based derivatives, mutual funds, and fair-value hedges. Level 3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently-traded non-exchange-based derivatives and commingled investment funds, and are measured using present value pricing models. We determine the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, we perform an analysis of the assets and liabilities at each reporting period end. Cash equivalents which includes money market funds are the only financial instrument measured and recorded at fair value in assets or liabilities on our consolidated balance sheet, and they are valued using Level 1 inputs. Stock-Based Compensation Pursuant to FASB ASC 718 Share-Based Payment (“ASC 718”), we record stock-based compensation expense for all stock-based awards. Under ASC 718, we estimate the fair value of stock options granted using the Black-Scholes option pricing model. The fair value for awards that are expected to vest is then amortized on a straight-line basis over the requisite service period of the award, which is generally the option vesting term. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option valuation model. The assumptions used in the Black-Scholes valuation model are as follows: • The grant price of the issuances, is determined based on the fair value of the shares at the date of grant. • The risk free interest rate for periods within the contractual life of the option is based on the US treasury yield in effect at the time of grant. • We calculate the expected term of options using a weighted average of option vesting periods and an estimate of one-half of the period between vesting and expiration of the option. • Volatility is determined based on our average historical volatilities supplemented with average historical volatilities of comparable companies in similar industry. • Expected dividend yield is based on current yield at the grant date or the average dividend yield over the historical period. We have never declared or paid dividends and have no plans to do so in the foreseeable future. Comprehensive Income or Loss We comply with provisions of FASB ASC 220, Comprehensive Income, which requires companies to report all changes in equity during a period, except those resulting from investment by owners and distributions to owners, for the period in which they are recognized. Comprehensive income is defined as the change in equity during a period from transactions and other events from non-owner sources. Comprehensive and other comprehensive income (loss) is reported on the face of the financial statements. For the years ended December 31, 2018, 2017 and 2016 comprehensive income (loss) is the total of net income (loss) and other comprehensive income (loss) which, for us, consists entirely of foreign currency translation adjustments and there were no material reclassifications from other comprehensive loss to net loss during the years ended December 31, 2018, 2017 and 2016. Foreign Currency Translation and Transactions The financial statements and transactions of the subsidiary’s operations are reported in the local (functional) currency of Swiss francs (CHF) and translated into US dollars in accordance with US GAAP. Assets and liabilities of those operations are translated at exchange rates in effect at the balance sheet date. The resulting gains and losses from translating foreign currency financial statements are recorded as other comprehensive income (loss). Revenues and expenses are translated at the average exchange rate for the reporting period. Foreign currency transaction gains (losses) resulting from exchange rate fluctuations on transactions denominated in a currency other than the foreign operations’ functional currencies are included in expenses in the consolidated statements of operations. Income Taxes We account for income taxes under an asset and liability approach for financial accounting and reporting for income taxes. Accordingly, we recognize deferred tax assets and liabilities for the expected impact of differences between the financial statements and the tax basis of assets and liabilities. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. In the event we were to determine that we would be able to realize our deferred tax assets in the future in excess of our recorded amount, an adjustment to the deferred tax assets would be credited to operations in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to operations in the period such determination was made. We have incurred losses for tax purposes since inception and have significant tax losses and tax credit carryforwards. As of December 31, 2018, we had federal and state of California income tax net operating loss carryforwards, which may be applied to future taxable income, of approximately $69.4 million and $42.5 million, respectively. To the extent that we continue to generate taxable losses, unused losses will carry forward to offset future taxable income, if any, until these unused losses expire. However, we may be unable to use these losses to offset taxable income before our unused losses expire at various dates that range from 2035 through 2038 for federal net operating losses and from 2033 through 2038 for state net operating losses. Under Section 382 of the Internal Revenue Code of 1986, as amended, or the Code, if a corporation undergoes an “ownership change,” generally defined as a greater than 50 percentage point change (by value) in its equity ownership over a three-year period, the corporation’s ability to use its pre-change net operating loss, or NOL, carryforwards to offset its post-change taxable income may be limited. Limitations may also apply to the utilization of other pre-change tax attributes as a result of an ownership change. We experienced an “ownership change” within the meaning of Section 382(g) of the Internal Revenue Code of 1986, as amended, during the second quarter of 2017. The ownership change will subject our net operating loss carryforwards to an annual limitation, which will significantly restrict our ability to use them to offset taxable income in periods following the ownership change. In general, the annual use limitation equals the aggregate value of our stock at the time of the ownership change multiplied by a tax-exempt interest rate specified by the Internal Revenue Service. We have analyzed the available information to determine the amount of the annual limitation. Based on information available us, the 2017 limitation is estimated to range between be $1.4 million and $3.7 million annually. In total, we estimate that the 2017 ownership change will result in approximately $120 million and $56 million of federal and state net operating loss carryforwards expiring unused. On December 22, 2017, the United States government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act significantly revises the existing tax law by, among other things, lowering the United States corporate income tax rate from 35% to 21% beginning in 2018. We reviewed and incorporated the impact of the Tax Act in our tax calculations and disclosures. The primary impact stems from the re-measurement of our deferred taxes at the new corporate tax rate of 21%, which reduced the our net deferred tax assets, before valuation allowance, by $7.5 million at December 31, 2017. Due to the full valuation allowance, the change in deferred taxes was fully offset by the change in valuation allowance. The Tax Act did not have a significant impact on our consolidated financial statements for the year ended December 31, 2018. Product Warranties Our policy is to warrant all shipped products against defects in materials and workmanship for up to two years by replacing failed parts. We also provide a three-year manufacturer’s warranty covering implant failure by providing a functionally-equivalent replacement implant. Accruals for product warranties are estimated based on historical warranty experience and current product performance trends and are recorded at the time revenue is recognized as a component of cost of sales. The warranty liabilities are reduced by material and labor costs used to replace parts over the warranty period in the periods in which the costs are incurred. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. Although any such adjustments were not material in the years ended December 31, 2018, 2017 and 2016, any such adjustments could be material in the future if estimates differ significantly from actual warranty expense. The warranty liabilities are included in accrued expenses in the consolidated balance sheets. Presentation of sales and value added taxes We collect value added tax on our sales in Europe and certain states in the United Sates impose a sales tax on our sales to nonexempt customers. We collect that valued added and sales tax from customers and remit the entire amount to the respective authorities. Our accounting policy is to exclude the tax collected and remitted to the authorities from revenues and cost of revenues. Net Loss per Share Our computation of earnings per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) available to common shareholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible notes payable, convertible preferred stock, preferred stock warrants and common stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the respective periods. Basic and diluted loss per common share is the same for all periods presented because all common stock warrants and common stock options outstanding were anti-dilutive. At December 31, 2018, 2017 and 2016, we excluded the outstanding securities summarized below, which entitle the holders thereof to ultimately acquire shares of common stock, from our calculation of earnings per share, as their effect would have been anti-dilutive (in thousands). 2018 2017 2016 Underwriter’s warrants 802 802 802 Warrants issued with convertible debt — 676 1,039 Warrants issued with 2017 Rights Offering 13,647 13,652 — Common stock options 7,120 5,675 3,667 Common stock issuable — 82 77 Restricted stock units 35 83 131 Employee stock purchase plan 405 271 206 Total 22,009 21,241 5,922 Restructuring Charges In October 2018, we announced a restructuring of our international commercial activities and personnel. This restructuring resulted in a decision to no longer support new implants of Argus II in Turkey, Iran, Singapore and Russia. We retained a team that continues to support existing Argus II patients and Centers of Excellence in the remaining international markets. We recognized approximately $0.6 million of pre-tax restructuring charges in the fourth quarter of fiscal year 2018 in connection with this restructuring, consisting of severance and other employee termination benefits, substantially all of which were settled in cash during the fourth quarter of 2018. Reclassifications Certain items in prior period financial statements have been reclassified to conform to the presentation in the current period financial statements. Such reclassification did not impact our previously-reported net loss on financial position. Recently Adopted Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). We generate our revenue from the sale of our Argus II retinal prosthesis systems, which include the implant and external components. Our product sales generally consist of the implant and related surgical supplies and may include a performance obligation related to post-surgical support. We sell our products through two main sales channels: 1) directly to customers who use our products (the “Direct Channel”) and 2) to distribution partners who resell our products (the “Indirect Channel”). Under the Direct Channel, we sell our systems to and we receive payment directly from customers who implant our products. Under our Indirect Channel, we have entered into distribution agreements that allow the distributors to sell our systems and fulfill performance obligations for surgical support and post-surgical support. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Revenue is generally recognized upon surgical implant, unless we have a significant performance obligation for post-surgical support. We recognize revenue when a material reversal is no longer probable. Conditions that preclude us from recognizing revenue generally involve new customers with no reimbursement or reimbursement history, and depends on third-party behavior beyond our control, uncertain payment cycles over an extended period of time, and our limited historical experience with these arrangements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (ASU 2014-15), Presentation of Financial Statements — Going Concern (Subtopic 205-10). ASU 2014-15 provided guidance as to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing these financial statements management evaluated whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued. As fully described in Note 1, we believe that we have sufficient funds to support our operations for at least twelve months. Recent Accounting Pronouncements In February No. 2016-02, Leases (Topic 842) (“ 2016-02”), which sets out the principles the recognition, measurement, presentation and disclosure leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases on the principle of whether or not the lease is effectively a financed purchase by the lessee. This will determine whether lease expense is recognized based on an interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. ASU 2016-02 (Accounting Standards Codification (“ASC”) Topic 842) supersedes the previous leases standard, ASC 840, Leases. The standard is effective for public entities 2018 and for those fiscal years. Subsequently, in July of 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), both of which clarify and enhance certain made in ASU 2016-02 and will be adopted in conjunction with ASU 2016-02. We believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would not have a material impact on our financial statement presentation or disclosures. |
Money Market Funds
Money Market Funds | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Money Market Funds | 3. Money Market Funds Money market funds included in cash equivalents at December 31, 2018 totaled $4.2 million, and The following table presents money market funds at their level within the fair value hierarchy at December 31, 2018 and 2017 (in thousands). Total Level 1 Level 2 Level 3 December 31, 2018: Money market funds $ 4,156 $ 4,156 $ — $ — December 31, 2017: Money market funds $ 7,235 $ 7,235 $ — $ — |
Selected Balance Sheet Detail
Selected Balance Sheet Detail | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Selected Balance Sheet Detail | 4. Selected Balance Sheet Detail Inventories, net Inventories consisted of the following at December 31, 2018 and 2017 (in thousands): 2018 2017 Raw materials $ 791 $ 485 Work in process 3,055 2,620 Finished goods 2,089 1,660 5,935 4,765 Allowance for excess and obsolescence (2,685 ) (2,065 ) Inventories, net $ 3,250 $ 2,700 During the year-ended December 31, 2017, we reversed $ 3.1 million of the 2016 charge for excess inventory based upon increased sales volumes in 2017. Property and equipment, net of accumulated depreciation and amortization Property and equipment consisted of the following at December 31, 2018 and 2017 (in thousands): 2018 2017 Laboratory equipment $ 2,482 $ 2,450 Computer hardware and software 1,456 1,329 Leasehold improvements 298 298 Furniture, fixtures and equipment 46 46 4,282 4,123 Accumulated depreciation and amortization (3,257 ) (2,824 ) Property and equipment, net $ 1,025 $ 1,299 Contract Liabilities Contract liabilities consisted of the following at December 31, 2018 and 2017 (in thousands 2018 2017 Beginning Balance $ 48 $ 85 Consideration received in advance of revenue recognition 551 769 Revenue recognized (432 ) (806 ) Ending Balance $ 167 $ 48 Allowance for Doubtful Accounts Allowance for doubtful accounts consisted of the following at December 31, 2018 and 2017 (in thousands): 2018 2017 Beginning Balance $ 74 $ 212 Additions 107 — (Write-offs)Recoveries — (138 ) Ending Balance $ 181 $ 74 |
Grants
Grants | 12 Months Ended |
Dec. 31, 2018 | |
Grants [Abstract] | |
Grants | 5. Grants In September 2014, we entered into a Joint Research and Development Agreement or JRDA with The Johns Hopkins University Applied Physics Laboratory (‘APL”). The JRDA includes a subcontract to do research under a grant received by APL. Under the JRDA, we have agreed to perform research regarding integration of APL research in to a visual prosthesis system. In October 2014, APL paid us $4.1 million in one lump sum to conduct its portion of the research. The JRDA also includes a license from APL to us, for the life of any patents resulting from APL’s portion of the research. The APL portion of the research includes image processing enhancements for a visual prosthesis. In exchange for the license, we issued 1,000 shares of our common stock to APL , We received an award for $1.6 million grant (with the intent to fund $6.4 million over five years subject to annual review and approval) from the National Institutes of Health (NIH) to fund the “Early Feasibility Clinical Trial of a Visual Cortical Prosthesis” that commenced in January 2018.The NIH grant funds ongoing and planned clinical activities and will be used to conduct and support clinical testing of five subjects implanted with the Orion™ Cortical Visual Prosthesis (Orion), submit and obtain Investigational Device Exemption approval from the U.S Food and Drug Administration (FDA), and fund an Institutional Review Board approval for a larger and final clinical study as approved by FDA. As of December 31, 2018 we recorded $0.5 million of deferred grant costs associated with this grant which will be offset with the related grant funds when received in 2019. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2018 | |
Warrants And Rights Note Disclosure [Abstract] | |
Warrants | 6. Warrants Warrants Issued with Convertible Debt During 2012 and 2013, we borrowed money primarily from then existing investors through the issuance of convertible promissory notes (collectively, the “Convertible Notes”) totaling $29.5 million. The Convertible Notes accrued interest at the rate of 7.5% per annum, which was added to the principal amounts. At the time of our November 2014 IPO, and in accordance with their original terms, the Convertible Notes were converted into 6.6 million shares of our common stock. In connection with the Convertible Notes, we issued warrants to purchase 1.2 million shares of our common stock at a price of $5.00 per share. Until their expiration date, the warrants could be exercised at any time, and from time to time, in whole or in part. In accordance with their amended terms, the warrants expired on the earlier of their expiration dates or upon a change in control event. The 361,909 warrants associated with the Convertible Notes issued in 2012 expired on July 31, 2017. The 676,494 warrants associated with the Convertible Notes issued in 2013 expired on February 28, 2018. Underwriter’s Warrant As a component of the IPO underwriting fee, we granted the underwriter a warrant to purchase 805,000 shares of our common stock at an exercise price of $11.25 per share, which was 25 percent above the offering price to the investors. The warrant is exercisable, in whole or in part, for a period commencing 180 days after the effective date of the registration statement (November 18, 2014) and ending on the fifth anniversary date of the effective date of the registration statement. Underwriter’s warrants to purchase 802,000 of our common stock are still outstanding at December 31, 2018. Warrants Issued in March 2017 Rights Offering On March 6, 2017, we completed a registered Rights Offering to existing stockholders in which we sold 13.7 million Units at $1.47 per Unit, which was the closing price of our common stock on that date. Each Unit consisted of a share of our common stock and a warrant to purchase an additional share of our stock for $1.47. The warrants have a five-year life and have been approved for trading on Nasdaq under the symbol EYESW. 5,055 of the warrants associated with the Rights Offering had been exercised as of December 31, 2018. (See Rights Offerings in Note 8.) A summary of warrant activity for the years ended December 31, 2018, 2017 and 2016 is presented below (in thousands, except per share and contractual life data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Warrants outstanding at December 31, 2015 1,840 $ 7.72 Granted — — Exercised — — Forfeited or expired — — Warrants outstanding at December 31, 2016 1,840 $ 7.72 Granted 13,652 1.47 Exercised — — Forfeited or expired (362 ) 5.00 Warrants outstanding at December 31, 2017 15,130 $ 2.15 Granted — — Exercised (5 ) 1.47 Forfeited or expired (676 ) 5.00 Warrants outstanding at December 31, 2018 14,449 $ 2.01 3.10 Warrants exercisable at December 31, 2018 14,449 $ 2.01 3.10 Warrants exercisable at December 31, 2018 had no intrinsic value. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 7. Employee Benefit Plans We have a 401(k) Savings Retirement Plan that covers substantially all full-time employees who meet the plan’s eligibility requirements and provides for an employee elective contribution. The Plan provides for employer matching contributions. Employer contributions are discretionary and determined annually by the Board of Directors. For the years ended December 31, 2018, 2017 and 2016, employer contributions to the Plan totaled $0.2 million, $0.1 million and $0.1 million, respectively. We are required to contribute to a government-sponsored pension plan for the employees of our Switzerland-based subsidiary. For the years ended December 31, 2018, 2017 and 2016, the employer’s portion of the amounts contributed to the subsidiary’s pension plan on behalf of those employees was $0.1 million, $0.1 million and $0.1 million, respectively. |
Equity Securities
Equity Securities | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Equity Securities | 8. Equity Securities In June 2014, our articles of incorporation were amended to increase authorized common shares to 200,000,000, no par value, and to authorize 10,000,000 shares of preferred stock, no par value. The Board of Directors has the authority to establish the rights, preferences, privileges and restrictions granted to and imposed upon the holders of preferred stock and common stock. Common Stock Issuable Non-employee members of our Board of Directors have been paid for their services in common stock on June 1 of each year and the number of shares issued was based on the average closing prices for the immediately preceding twenty trading days. For 2018, we issued a total of 132,996 shares of common stock with a value of $0.3 million for annual service through May 31, 2018. Our Director Compensation Policy was amended in December 2017 and board members receive compensation in cash and stock options, effective with the annual period commencing June 1, 2018. For the seven months ended December 31, 2018 our board members were compensated $0.1 million and also received stock options valued at $0.1 million. For 2017, for these services we issued 223,000 shares with a value of $0.3 million and accrued $0.2 million, which equates to 82,000 shares based on the average closing price of $1.86 for our common stock during last 20 trading days as of December 31, 2017. For 2016, for these services we issued 82,000 shares with a value of $0.3 million and accrued $0.2 million, which equates to 77,000 shares based on the average closing price of $1.98 for our common stock during last 20 trading days as of December 31, 2016. The shares, which had not yet been issued, were excluded from the calculation of weighted average common shares outstanding for EPS purposes. Rights Offerings In June 2016, we completed a Rights Offering to existing stockholders, raising proceeds of $19.5 million net of cash offering costs, and selling 5,978,465 shares of common stock at $3.315 per share, representing 85% of our stock price at the close of the rights offering. We evaluated the financial impact of FASB ASC 260, “Earnings per Share,” which states, among other things, that if a rights issue is offered to all existing stockholders at an exercise price that is less than the fair value of the stock, then the weighted average shares outstanding and basic and diluted earnings per share shall be adjusted retroactively to reflect the bonus element of the rights offering for all periods presented. We determined that the application of this specific provision of ASC 260 was immaterial to previously issued financial statements and, therefore, did not retroactively adjust previously reported weighted average shares outstanding and basic and diluted earnings per share. On March 6, 2017, we completed a registered Rights Offering to existing stockholders in which we sold 13.7 million units at $1.47 per unit, which was the closing price of our common stock on that date. Each unit consisted of a share of our common stock and a warrant to purchase an additional share of our stock for $1.47. The warrants have a five-year life and have been approved for trading on Nasdaq under the symbol EYESW. At our discretion, the warrants are redeemable on 30 days’ notice (i) at any time 24 months after the date of issuance, (ii) if the shares of our common stock are trading at $2.94, which is 200% of the Subscription Price, for 15 consecutive trading days and (iii) if all of the independent directors vote in favor of redeeming the warrants. Holders may be able to sell or exercise warrants prior to any announced redemption date and we may redeem outstanding warrants not exercised by the announced redemption date, at our option, for a nominal amount of $0.01 per warrant. (See Note14 about new warrant terms) At-the-Market Sales Agreement During December 2017, we issued 598,276 shares of common stock for gross proceeds of approximately $1.2 million as part of our At Market Issuance Sales Agreement with two different investment banks. We paid expenses of approximately $0.1 million resulting in net proceeds of $1.1 million. In the period from January 1, 2018 to February 28, 2018, we sold approximately 2.2 million additional shares through our Sales Agreement, raising gross proceeds of approximately $4.1 million and net proceeds of approximately $4.0 million after expenses. Stock Purchase Agreements We entered into stock purchase agreements on December 12, 2018, October 18, 2018, August 14, 2018 and May 3, 2018 with entities beneficially owned by Gregg Williams for the purchase of 3,275,100, 2,467,727, 3,225,807 and 6,756,757 shares respectively of common stock priced at $0.916, $1.62, $1.55 and $1.48 per share respectively, the last reported sale price of the common stock on each purchase date. Gregg Williams is Chairman of the Board of Directors of Second Sight. These placements of common stock provided net proceeds of $3.0 million, $4.0 million, $5.0 million and $10.0 million, respectively. No warrants or discounts were provided and no placement agent or investment banking fees were incurred in connection with these transactions. The shares issuable to the purchasers under the Securities Purchase Agreements were issued pursuant to an exemption from registration under Rule 506 of Regulation D, which is promulgated under the Securities Act of 1933. We relied on this exemption from registration based in part on representations made by the purchasers. See Note 14- |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation Under the 2003 Plan, as restated in June 2011, we were authorized to issue options covering up to 3,500,000 shares of common stock. Effective June 1, 2011, we adopted the 2011 Equity Incentive Plan (the “2011 Plan”). The maximum number of shares with respect to which options could be granted under the 2011 Plan was 7,500,000 shares, which is offset and reduced by options previously granted under the 2003 Plan. The option price is determined by the Board of Directors but cannot be less than the fair value of the shares at the grant date. Generally, the options vest ratably over either four or five years and expire ten years from the grant date. Both plans provide for accelerated vesting if there is a change of control, as defined in the plans. The Plan was further amended in 2015, 2016, 2017 and 2018 bringing the number of shares issuable under the Plan to 12,000,000. No option shall be granted under the 2011 Plan after May 31, 2021. We recognized stock-based compensation cost of $3.6 million, $3.8 million and $3.4 million during 2018, 2017 and 2016, respectively. The calculated value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2018 2017 2016 Risk-free interest rate 2.32% – 3.05% 1.92% – 2.25% 1.40%–2.03% Expected dividend yield 0% 0% 0% Expected volatility 67.0% 48.0% 47.6%–48.2% Expected term 5.50-6.11 years 6.25 years 6.25 years Weighted-average grant date calculated fair value $ 1.20 $ 0.90 $ 1.97 . A summary of stock option activity for the years ended December 31, 2018, 2017 and 2016 is presented below (in thousands, except per share and contractual life data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Options outstanding at December 31, 2015 3,472 $ 8.01 Granted 745 4.18 Exercised (96 ) 5.00 Forfeited or expired (454 ) 8.66 Options outstanding at December 31, 2016 3,667 $ 7.23 Granted 2,701 1.80 Exercised — — Forfeited or expired (693 ) 5.38 Options outstanding at December 31, 2017 5,675 $ 4.87 Granted 3,178 1.94 Exercised (76 ) 1.95 Forfeited or expired (1,657 ) 3.83 Options outstanding at December 31, 2018 7,120 $ 3.83 6.81 Options exercisable at December 31, 2018 2,978 $ 5.94 4.42 The exercise prices of common stock options outstanding and exercisable are as follows at December 31, 2018 (in thousands): Exercise Price Options Outstanding (Shares) Options Exercisable (Shares) $ 0.91 to 1.97 3,455 953 $ 2.01 to 2.06 1,305 — $ 2.07 to 5.00 898 751 $ 5.16 to 9.00 792 724 $ 9.01 to 13.90 670 550 7,120 2,978 Stock options exercisable at December 31, 2018 had no intrinsic value . During the year ended December 31, 2018, we granted stock options to purchase 3,148,252 shares of common stock to certain employees and directors. The options are exercisable for a period of ten years from the date of grant at prices ranging from $0.92 to $2.07 per share, which was the fair value of our common stock on the respective grant dates. The options vest over a period of four years. The fair value of these options, as calculated pursuant to the Black-Scholes option-pricing model, was determined to be $3.8 million ($0.57 to $1.30 per share). Assumptions used in the model were an expected term of 5.50 %. During the year ended December 31, 2018, we recorded $0.4 million of stock-based compensation expense related to stock option modifications for executive transitions. In March 2017, we granted stock options to purchase 40,000 shares of common stock to an outside attorney in connection with his services relating to our March, 2017 rights offering to stockholders. The options are exercisable for a period of four years from the date of grant at a price of $1.76 per share, which was 120% of the fair value of our common stock on the grant date of March 6, 2017. The options vested as of the date of grant. The fair value of these options, as calculated pursuant to the Black-Scholes option-pricing model, was determined to be $19,640 ($0.49 per share). Assumptions used in the model were an expected term of 4.0 years, volatility of 48.0%, a risk-free interest rate of 1.81%, and an expected dividend rate of 0%. The cost of these shares was treated as an issuance cost of the offering and was deducted from the gross proceeds from the offering. In October 2017 and in January 2018 we granted stock options to purchase 150,000 and 30,000 shares of common stock respectively, to an outside contractor in connection with his services. The options are exercisable for a period of ten years from the date of grant at a price of $1.21 and $2.06 respectively, per share, which was the fair value of our common stock on each grant date. The options vest over a four year period. The unvested portion of these stock options is re-measured by us at each reporting period. For the years ended December 31, 2018 and 2017, $43,000 and $11,000 respectively, has been expensed for these grants respectively. We adopted an employee stock purchase plan in June 2015 for all eligible employees. As of December 31, 2018, the maximum number of shares that may be issued under the plan is 1,550,000. Under the plan, shares of our common stock may be purchased at six-month intervals at 85% of the lower of the closing fair market value of the common stock (i) on the first trading day of the offering period or (ii) on the last trading day of the purchase period. An employee may purchase in any one calendar year shares of common stock having an aggregate fair market value of up to $25,000 determined as of the first trading day of the offering period. Additionally, a participating employee may not purchase more than 100,000 shares of common stock in any one offering period. At December 31, 2018, 1,143,112 shares were issued under the stock purchase plan. The following table presented below summarizes Restricted Stock Unit (RSU) activity for the years ended December 31, 2018, 2017 and 2016 (in thousands, except per share data): Number of Awards Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2015 190 $ 12.43 Awarded — — Vested 59 12.43 Forfeited/canceled — — Outstanding as of December 31, 2016 131 $ 12.43 Awarded — — Vested 48 12.43 Forfeited/canceled — — Outstanding as of December 31, 2017 83 $ 12.43 Awarded — — Vested 48 12.43 Forfeited/canceled — — Outstanding as of December 31, 2018 35 $ 12.43 As of December 31, 2018, there was $0.4 million of total unrecognized compensation cost related to the outstanding RSUs that will be recognized over a weighted average period of 0.63 years. The total stock-based compensation recognized for stock-based awards granted in the consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 is as follows (in thousands): 2018 2017 2016 Cost of sales $ 279 $ 235 $ 312 Research and development 382 288 303 Clinical and regulatory 152 329 173 Selling and marketing 505 339 104 General and administrative 2,271 2,593 2,475 Total $ 3,589 $ 3,784 $ 3,367 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets as of December 31, 2018 and 2017 are summarized below (in thousands): 2018 2017 Stock-based compensation $ 4,297 $ 3,346 Research credits 7,003 5,858 Depreciation (48 ) (41 ) Net operating loss carryforwards 20,315 14,088 Inventory reserve 651 467 Other 643 466 Total deferred tax assets 32,861 24,184 Valuation allowance (32,861 ) (24,184 ) Net deferred tax assets $ — $ — In assessing the potential realization of these deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon us attaining future taxable income during the periods in which those temporary differences become deductible. As of December 31, 2018 and 2017, management was unable to determine if it is more likely than not that our deferred tax assets will be realized, and has therefore recorded an appropriate valuation allowance against deferred tax assets at such dates. No federal tax provision has been provided for the years ended December 31, 2018, 2017 and 2016 due to the losses incurred during such periods. Our effective tax rate is different from the federal statutory rate of 21% due primarily to operating losses that receive no tax benefit as a result of a valuation allowance recorded for such losses. We experienced an “ownership change” within the meaning of Section 382(g) of the Internal Revenue Code of 1986, as amended, during the second quarter of 2017. The ownership change will subject our net operating loss carryforwards to an annual limitation, which will significantly restrict our ability to use them to offset taxable income in periods following the ownership change. In general, the annual use limitation equals the aggregate value of the our stock at the time of the ownership change multiplied by a tax-exempt interest rate specified by the Internal Revenue Service. We analyzed the available information to determinetax the amount of the annual limitation. Based on information available to us, the 2017 limitation is estimated to range between $1.4 million and $3.7 million annually. In total, we estimate that the 2017 ownership change will result in approximately $120 million and $56 million of federal and state net operating loss carryforwards, respectively, expiring unused. As of December 31, 2018, after the ownership change under Section 382(g), we had federal and state income tax net operating loss carryforwards, which may be applied to future taxable income, of approximately $69.4 million and $42.5 million, respectively. The federal net operating loss carryforwards will expire at various dates from 2035 through 2038. The state net operating loss carryforwards began to expire at various dates from 2033 through 2038. We also have a federal and state research and development tax credit carryforwards totaling approximately $3,801,000 and $3,202,000, respectively. The federal research and development tax credit carryforwards will expire at various dates from 2023 through 2038. The state research and development tax credit carryforwards do not expire. We file income tax returns in the U.S. federal jurisdiction and various states and are subject to income tax examinations by federal tax authorities for tax years ended 2015 and later and by state authorities for tax years ended 2014 and later. We currently are not under examination by any tax authority. Our policy is to record interest and penalties on uncertain tax positions as income tax expense. As of December 31, 2018,and 2017, we have no accrued interest or penalties related to uncertain tax positions. Second Sight Switzerland, our foreign subsidiary, has not had any taxable income in the prior and current years. On December 22, 2017, the United States government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act significantly revises the existing tax law by, among other things, lowering the United States corporate income tax rate from 35% to 21% beginning in 2018. We reviewed and incorporated the impact of the Tax Act in our tax calculations and disclosures. The primary impact stems from the re-measurement of our deferred taxes at the new corporate tax rate of 21%, which reduced our net deferred tax assets, before valuation allowance, by $7.5 million at December 31, 2017. Due to the full valuation allowance, the change in deferred taxes was fully offset by the change in valuation allowance. The Tax Act did not have a significant impact on our consolidated financial statements for the year ended December 31, 2018. . |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | 11. Product Warranties A summary of activity of our warranty liabilities, which are included in accrued expenses in the accompanying consolidated balance sheets, for the years ended December 31, 2018, 2017 and 2016 is presented below (in thousands): 2018 2017 2016 Balance, beginning of year $ 1,456 $ 1,525 $ 1,066 Additions 193 470 727 Settlements (264 ) (236 ) (268 ) Adjustments and other 187 (303 ) — Total $ 1,572 $ 1,456 $ 1,525 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Lease Commitment Effective August 2012, we entered into a lease agreement with a company owned by the former major stockholder for office space for a term of five years that was initially set to expire on February 28, 2017. The lease included rental of additional space commencing January 1, 2013 and a five year option to renew. The lease requires us to pay real estate taxes, insurance and common area maintenance each year, and is subject to periodic cost of living adjustments. In April 2014, the lease was renegotiated with the term ending on February 28, 2022, and a five year option to renew. The new lease also requires us to pay real estate taxes, insurance and common area maintenance each year and includes automatic increases in base rent each year. In November 2014, the property underlying the lease was sold to an unrelated party. The current base rent at this facility is $36,600 per month. Second Sight Switzerland rents office space in Switzerland on a month-to-month basis for CHF 8,200 (approximately $8,161, at current exchange rates) per month. Total rent expense was approximately $1.0 million, $1.0 million and $1.1 million for the years ended December 31, 2018, 2017 and 2016, respectively, and is allocated based on square footage to general and administrative and manufacturing costs in the accompanying consolidated statement of operations. Future minimum rental payments required under the operating leases are as follows for the years ended December 31 (in thousands) Years Amount 2019 $ 884 2020 910 2021 937 2022 158 Total $ 2,889 License Agreements We have exclusive licensing agreements to utilize certain patents, related to the technology for visual prostheses. We have determined that only the agreement with Doheny Eye Institute (“DEI”) applies to Argus II requiring future royalty payments. We have agreed to pay to DEI royalties for licensed products sold or leased by us. The royalty rate is 0.5%, based on related net sales of the patented portion of licensed products. In the past we have paid royalties under a license agreement with the Johns Hopkins University (“JHU”). The JHU agreement expired, along with the underlying patents, in 2018. Pursuant to these agreements, DEI and JHU, we have incurred costs of approximately $0.1 million , $0.1 million and $0.1 million for the years ended December 31, 2018, 2017 and 2016, respectively. Indemnification Agreements We maintain indemnification agreements with our directors and officers that may require us to indemnify them against liabilities that arise by reason of their status or service as directors or officers, except as prohibited by applicable law. Employment Agreements We have entered into employment agreements and have an approved Change in Control Plan for three of our executive officers which provides for twelve months of severance benefits including salary, bonus and COBRA benefits in the event of a termination in connection with a change in control, subject to the terms in these agreements. Our Change in Control Plan also provides, for certain other officers, six months of salary, bonus, and COBRA benefits in the event of a termination in connection with a change in control, subject to the terms of the Change in Control Plan. Clinical Trial Agreements Based upon FDA approval, which was obtained in February 2013, we are required to collect follow-up data from subjects enrolled in our pre-approval trial for a period of up to ten years post-implant, which extends this trial through the year 2019. In addition, we are conducting three post-market studies to comply with US FDA, French, and European post-market surveillance regulations and requirements. We have contracted with various universities, hospitals, and medical practices to provide these services. Payments are based on procedures performed for each subject and are charged to clinical and regulatory expense as incurred. Total amounts charged to expense for the years ended December 31, 2018, 2017 and 2016 were $1.8 million, $0.8 million and $0.8 million, respectively. Litigation, Claims and Assessments Twenty-two oppositions have been filed by third-parties in the European Patent Office, each challenging the validity of a European patent owned or exclusively licensed by us. The outcome of the challenges is not certain, however, if successful, they may affect our ability to block competitors from utilizing our patented technology. We believe a successful challenge will not have a material effect on our ability to manufacture and sell our products, or otherwise have a material effect on our operations. We are party to litigation arising in the ordinary course of business. It is our opinion that the outcome of such matters will have not have a material effect on our financial statements, however the results of litigation and claims are inherently unpredictable. Regardless of outcome, litigation can have an adverse impact on the company because of defense and settlement costs, diversion of management resources and other factors. |
Quarterly Financial Summary (un
Quarterly Financial Summary (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Summary (unaudited) | 13. Quarterly Financial Summary (unaudited) Quarters Ended (in thousands, except per share data) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Product sales $ 1,767 $ 2,246 $ 1,907 $ 976 Gross profit $ 167 $ 462 $ 1,071 $ 308 Operating loss $ (8,877 ) $ (8,546 ) $ (7,988 ) $ (9,769 ) Net loss $ (8,858 ) $ (8,522 ) $ (7,961 ) $ (9,753 ) Net loss per share – basic and diluted $ (0.12 ) $ (0.12 ) $ (0.12 ) $ (0.17 ) Quarters Ended December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Product sales $ 3,109 $ 1,610 $ 2,236 $ 1,009 Gross profit (loss) $ 1,247 $ 609 $ (1,109 ) $ (118 ) Operating loss $ (7,433 ) $ (6,749 ) $ (6,872 ) $ (7,555 ) Net loss $ (7,409 ) $ (6,716 ) $ (6,843 ) $ (7,548 ) Net loss per share – basic and diluted $ (0.13 ) $ (0.12 ) $ (0.12 ) $ (0.16 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Notes To Financial Statements [Abstract] | |
Subsequent Events | 14. Subsequent Events Stock Option Grants In January and February 2019, we granted long term incentive stock options to our current employees to purchase 1,893,862 2019 Rights Offering In a Rights Offering completed on February 22, 2019 we sold approximately 47.8 million units, each priced at $0.724 for gross proceeds of approximately $34.6 million. Each unit consisted of one share and one immediately exercisable warrant having a strike price of $1.47 per share. Entities controlled by Gregg Williams, our Chairman of the Board of Directors, acquired approximately 41.4 million units in the offering for an aggregate investment of approximately $30 million. The expiration date of the warrants being issued pursuant to this Rights Offering is March 14, 2024, and the expiration date of all outstanding warrants listed for trading under the symbol “EYESW” were extended to March 14, 2024. Nasdaq Deficiency Letter On January 25, 2019, we received a letter from The Nasdaq Stock Market advising us that for 30 consecutive trading days preceding the date of the letter, the bid price of our common stock had closed below the $1.00 per share minimum required for continued listing on The Nasdaq Capital Market pursuant to listing rules, and therefore we could become subject to delisting if we did not regain compliance within the compliance period (or the compliance period as may be extended). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and include the financial statements of Second Sight and Second Sight Switzerland. Intercompany balances and transactions 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 at the date of the financial statements and the reported amounts of expenses during the reporting period. We base our estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Significant estimates include those related to assumptions used in accruals for potential liabilities, valuing equity instruments issued for services, and the realization of deferred tax assets. Actual results could differ from those estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. Cash is carried at cost, which approximates fair value, and cash equivalents are carried at fair value. We generally invests funds that are in excess of current needs in high credit quality instruments such as money market funds. |
Accounts Receivable | Accounts receivable Trade accounts receivable are stated net of an allowance for doubtful accounts. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers or interest on past due amounts. We estimate the allowance for doubtful accounts based on review and analysis of specific customer balances that may not be collectible and how recently payments have been received. Accounts are considered for write-off when they become past due and when it is determined that the probability of collection is remote. Allowance for doubtful accounts amounted to approximately $0.2 million and $0.1 million at December 31, 2018 and 2017, respectively. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value determined by the first-in, first-out method. Inventories consist primarily of raw materials, work in progress and finished goods, which includes all direct material, labor and other overhead costs. We establish a reserve to mark down our inventory for estimated unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about the usability of the inventory, future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserve may be required. |
Property and Equipment | Property and Equipment Property and equipment are recorded at historical cost less accumulated depreciation and amortization. Improvements are capitalized, while expenditures for maintenance and repairs are charged to expense as incurred. Upon disposal of depreciable property, the appropriate property accounts are reduced by the related costs and accumulated depreciation. The resulting gains and losses are reflected in the consolidated statements of operations. Depreciation is provided for using the straight-line method in amounts sufficient to relate the cost of assets to operations over their estimated service lives. Leasehold improvements are amortized over the shorter of the life of the asset or the related lease term. Estimated useful lives of the principal classes of assets are as follows: Lab equipment 5 – 7 years Computer hardware and software 3 – 7 years Leasehold improvements 2 – 5 years or the term of the lease, if shorter Furniture, fixtures and equipment 5 – 10 years We review our property and equipment for impairment annually or whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. There were no impairment losses recognized in 2018, 2017, and 2016. Depreciation and amortization of property and equipment amounted to $0.4 million, $0.5 million and $0.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Research and Development | Research and Development Research and development costs are charged to operations in the period incurred and amounted to $10.0 million, $7.9 million and $5.3 million net of grant revenue, for the years ended December 31, 2018, 2017 and 2016, respectively. |
Patent Costs | Patent Costs |
Revenue Recognition | Revenue Recognition We generate our revenue from the sale of our Argus II retinal prosthesis systems, which include the implant and external components. Our product sales generally consist of the implant and related surgical supplies and may include a performance obligation related to post-surgical support. We sell our products through two main sales channels: 1) directly to customers who use our products (the “Direct Channel”) and 2) to distribution partners who resell our products (the “Indirect Channel”). Under the Direct Channel, we sell our systems to and we receive payment directly from customers who implant our products. Under our Indirect Channel, we have entered into distribution agreements that allow the distributors to sell our systems and fulfill performance obligations for surgical support and post-surgical support. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Revenue is generally recognized upon surgical implant, unless we have a significant performance obligation for post-surgical support. We recognize revenue when a material reversal is no longer probable. Conditions that preclude us from recognizing revenue generally involve new customers with no reimbursement or reimbursement history, and depends on third-party behavior beyond our control, uncertain payment cycles over an extended period of time, and our limited historical experience with these arrangements. |
Grant Receipts and Liabilities | Grant Receipts and Liabilities From time to time, we receive grants that help fund specific development programs. Any amounts received pursuant to grants are offset against the related operating expenses as the costs are incurred. During the years ended December 31, 2018, 2017 and 2016 grants offset against operating expenses were $0.2 million, $0.4 million and $2.4 million, respectively. |
Concentration of Risk | Concentration of Risk Credit Risk Financial instruments that subject us to concentrations of credit risk consist primarily of cash, money market funds, and trade accounts receivable. We maintain cash and money market funds with financial institutions that management deems reputable, and at times, cash balances may be in excess of FDIC and SIPC insurance limits of $250,000 and $500,000 (including cash of $250,000), respectively. We extend differing levels of credit to customers, and typically do not require collateral. We also maintain a cash balance at a bank in Switzerland. Accounts at such bank are insured up to an amount specified by the deposit insurance agency of Switzerland. Customer Concentration The following tables provide information about disaggregated revenue by service type, customer and geographical market. The following table shows our revenues by customer type during the years ended December 31, 2018, 2017 and 2016 (in thousands): 2018 2017 2016 Direct customers $ 5,694 $ 6,727 $ 3,822 Indirect channel 1,202 1,237 163 Total $ 6,896 $ 7,964 $ 3,985 During the year ended December 31, 2018 two customers represented 10% of revenue. During the years ended December 31, 2017 and 2016 one customer represented 10% and 13% of revenue respectively. No other customer represented 10% or more of revenue in any year. As of December 31, 2018 and 2017, the following customers comprised more than 10% accounts receivable: 2018 2017 Customer 1 55 % — % Customer 2 22 % 8 % Customer 3 21 % 8 % Customer 4 — % 17 % Customer 5 — % 16 % Customer 6 — % 11 % Geographic Concentration During the years ended December 31, 2018, 2017 and 2016, regional revenue, based on customer locations which comprised more than 10% of revenues, consisted of the following: 2018 2017 2016 United States 56 % 53 % 47 % Italy 10 % 13 % 17 % France 10 % 8 % 9 % Germany 4 % 3 % 12 % Sources of Supply Several of the components, materials and services used in our current Argus II product are available from only one supplier, and substitutes for these items cannot be obtained easily or would require substantial design or manufacturing modifications. Any significant problem experienced by one of our sole source suppliers could result in a delay or interruption in the supply of components to us until that supplier cures the problem or an alternative source of the component is located and qualified. Even where we could qualify alternative suppliers, the substitution of suppliers may be at a higher cost and cause time delays that impede the commercial production of the Argus II, reduce gross profit margins and impact our ability to deliver our products as may be timely required to meet demand. |
Foreign Operations | Foreign Operations The accompanying consolidated financial statements as of December 31, 2018 and 2017 include assets amounting to approximately $1.5 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The authoritative guidance with respect to fair value establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required. Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that we have the ability to access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active-exchange traded securities and exchange-based derivatives. Level 2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange based derivatives, mutual funds, and fair-value hedges. Level 3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently-traded non-exchange-based derivatives and commingled investment funds, and are measured using present value pricing models. We determine the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, we perform an analysis of the assets and liabilities at each reporting period end. Cash equivalents which includes money market funds are the only financial instrument measured and recorded at fair value in assets or liabilities on our consolidated balance sheet, and they are valued using Level 1 inputs. |
Stock-Based Compensation | Stock-Based Compensation Pursuant to FASB ASC 718 Share-Based Payment (“ASC 718”), we record stock-based compensation expense for all stock-based awards. Under ASC 718, we estimate the fair value of stock options granted using the Black-Scholes option pricing model. The fair value for awards that are expected to vest is then amortized on a straight-line basis over the requisite service period of the award, which is generally the option vesting term. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option valuation model. The assumptions used in the Black-Scholes valuation model are as follows: • The grant price of the issuances, is determined based on the fair value of the shares at the date of grant. • The risk free interest rate for periods within the contractual life of the option is based on the US treasury yield in effect at the time of grant. • We calculate the expected term of options using a weighted average of option vesting periods and an estimate of one-half of the period between vesting and expiration of the option. • Volatility is determined based on our average historical volatilities supplemented with average historical volatilities of comparable companies in similar industry. • Expected dividend yield is based on current yield at the grant date or the average dividend yield over the historical period. We have never declared or paid dividends and have no plans to do so in the foreseeable future. |
Comprehensive Income or Loss | Comprehensive Income or Loss We comply with provisions of FASB ASC 220, Comprehensive Income, which requires companies to report all changes in equity during a period, except those resulting from investment by owners and distributions to owners, for the period in which they are recognized. Comprehensive income is defined as the change in equity during a period from transactions and other events from non-owner sources. Comprehensive and other comprehensive income (loss) is reported on the face of the financial statements. For the years ended December 31, 2018, 2017 and 2016 comprehensive income (loss) is the total of net income (loss) and other comprehensive income (loss) which, for us, consists entirely of foreign currency translation adjustments and there were no material reclassifications from other comprehensive loss to net loss during the years ended December 31, 2018, 2017 and 2016. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The financial statements and transactions of the subsidiary’s operations are reported in the local (functional) currency of Swiss francs (CHF) and translated into US dollars in accordance with US GAAP. Assets and liabilities of those operations are translated at exchange rates in effect at the balance sheet date. The resulting gains and losses from translating foreign currency financial statements are recorded as other comprehensive income (loss). Revenues and expenses are translated at the average exchange rate for the reporting period. Foreign currency transaction gains (losses) resulting from exchange rate fluctuations on transactions denominated in a currency other than the foreign operations’ functional currencies are included in expenses in the consolidated statements of operations. |
Income Taxes | Income Taxes We account for income taxes under an asset and liability approach for financial accounting and reporting for income taxes. Accordingly, we recognize deferred tax assets and liabilities for the expected impact of differences between the financial statements and the tax basis of assets and liabilities. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. In the event we were to determine that we would be able to realize our deferred tax assets in the future in excess of our recorded amount, an adjustment to the deferred tax assets would be credited to operations in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to operations in the period such determination was made. We have incurred losses for tax purposes since inception and have significant tax losses and tax credit carryforwards. As of December 31, 2018, we had federal and state of California income tax net operating loss carryforwards, which may be applied to future taxable income, of approximately $69.4 million and $42.5 million, respectively. To the extent that we continue to generate taxable losses, unused losses will carry forward to offset future taxable income, if any, until these unused losses expire. However, we may be unable to use these losses to offset taxable income before our unused losses expire at various dates that range from 2035 through 2038 for federal net operating losses and from 2033 through 2038 for state net operating losses. Under Section 382 of the Internal Revenue Code of 1986, as amended, or the Code, if a corporation undergoes an “ownership change,” generally defined as a greater than 50 percentage point change (by value) in its equity ownership over a three-year period, the corporation’s ability to use its pre-change net operating loss, or NOL, carryforwards to offset its post-change taxable income may be limited. Limitations may also apply to the utilization of other pre-change tax attributes as a result of an ownership change. We experienced an “ownership change” within the meaning of Section 382(g) of the Internal Revenue Code of 1986, as amended, during the second quarter of 2017. The ownership change will subject our net operating loss carryforwards to an annual limitation, which will significantly restrict our ability to use them to offset taxable income in periods following the ownership change. In general, the annual use limitation equals the aggregate value of our stock at the time of the ownership change multiplied by a tax-exempt interest rate specified by the Internal Revenue Service. We have analyzed the available information to determine the amount of the annual limitation. Based on information available us, the 2017 limitation is estimated to range between be $1.4 million and $3.7 million annually. In total, we estimate that the 2017 ownership change will result in approximately $120 million and $56 million of federal and state net operating loss carryforwards expiring unused. On December 22, 2017, the United States government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act significantly revises the existing tax law by, among other things, lowering the United States corporate income tax rate from 35% to 21% beginning in 2018. We reviewed and incorporated the impact of the Tax Act in our tax calculations and disclosures. The primary impact stems from the re-measurement of our deferred taxes at the new corporate tax rate of 21%, which reduced the our net deferred tax assets, before valuation allowance, by $7.5 million at December 31, 2017. Due to the full valuation allowance, the change in deferred taxes was fully offset by the change in valuation allowance. The Tax Act did not have a significant impact on our consolidated financial statements for the year ended December 31, 2018. |
Product Warranties | Product Warranties Our policy is to warrant all shipped products against defects in materials and workmanship for up to two years by replacing failed parts. We also provide a three-year manufacturer’s warranty covering implant failure by providing a functionally-equivalent replacement implant. Accruals for product warranties are estimated based on historical warranty experience and current product performance trends and are recorded at the time revenue is recognized as a component of cost of sales. The warranty liabilities are reduced by material and labor costs used to replace parts over the warranty period in the periods in which the costs are incurred. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. Although any such adjustments were not material in the years ended December 31, 2018, 2017 and 2016, any such adjustments could be material in the future if estimates differ significantly from actual warranty expense. The warranty liabilities are included in accrued expenses in the consolidated balance sheets. |
Presentation of Sales and Value Added Taxes | Presentation of sales and value added taxes We collect value added tax on our sales in Europe and certain states in the United Sates impose a sales tax on our sales to nonexempt customers. We collect that valued added and sales tax from customers and remit the entire amount to the respective authorities. Our accounting policy is to exclude the tax collected and remitted to the authorities from revenues and cost of revenues. |
Net Loss Per Share | Net Loss per Share Our computation of earnings per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) available to common shareholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible notes payable, convertible preferred stock, preferred stock warrants and common stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the respective periods. Basic and diluted loss per common share is the same for all periods presented because all common stock warrants and common stock options outstanding were anti-dilutive. At December 31, 2018, 2017 and 2016, we excluded the outstanding securities summarized below, which entitle the holders thereof to ultimately acquire shares of common stock, from our calculation of earnings per share, as their effect would have been anti-dilutive (in thousands). 2018 2017 2016 Underwriter’s warrants 802 802 802 Warrants issued with convertible debt — 676 1,039 Warrants issued with 2017 Rights Offering 13,647 13,652 — Common stock options 7,120 5,675 3,667 Common stock issuable — 82 77 Restricted stock units 35 83 131 Employee stock purchase plan 405 271 206 Total 22,009 21,241 5,922 |
Restructuring Charges | Restructuring Charges In October 2018, we announced a restructuring of our international commercial activities and personnel. This restructuring resulted in a decision to no longer support new implants of Argus II in Turkey, Iran, Singapore and Russia. We retained a team that continues to support existing Argus II patients and Centers of Excellence in the remaining international markets. We recognized approximately $0.6 million of pre-tax restructuring charges in the fourth quarter of fiscal year 2018 in connection with this restructuring, consisting of severance and other employee termination benefits, substantially all of which were settled in cash during the fourth quarter of 2018. |
Reclassifications | Reclassifications Certain items in prior period financial statements have been reclassified to conform to the presentation in the current period financial statements. Such reclassification did not impact our previously-reported net loss on financial position. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). We generate our revenue from the sale of our Argus II retinal prosthesis systems, which include the implant and external components. Our product sales generally consist of the implant and related surgical supplies and may include a performance obligation related to post-surgical support. We sell our products through two main sales channels: 1) directly to customers who use our products (the “Direct Channel”) and 2) to distribution partners who resell our products (the “Indirect Channel”). Under the Direct Channel, we sell our systems to and we receive payment directly from customers who implant our products. Under our Indirect Channel, we have entered into distribution agreements that allow the distributors to sell our systems and fulfill performance obligations for surgical support and post-surgical support. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Revenue is generally recognized upon surgical implant, unless we have a significant performance obligation for post-surgical support. We recognize revenue when a material reversal is no longer probable. Conditions that preclude us from recognizing revenue generally involve new customers with no reimbursement or reimbursement history, and depends on third-party behavior beyond our control, uncertain payment cycles over an extended period of time, and our limited historical experience with these arrangements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (ASU 2014-15), Presentation of Financial Statements — Going Concern (Subtopic 205-10). ASU 2014-15 provided guidance as to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing these financial statements management evaluated whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued. As fully described in Note 1, we believe that we have sufficient funds to support our operations for at least twelve months. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February No. 2016-02, Leases (Topic 842) (“ 2016-02”), which sets out the principles the recognition, measurement, presentation and disclosure leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases on the principle of whether or not the lease is effectively a financed purchase by the lessee. This will determine whether lease expense is recognized based on an interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. ASU 2016-02 (Accounting Standards Codification (“ASC”) Topic 842) supersedes the previous leases standard, ASC 840, Leases. The standard is effective for public entities 2018 and for those fiscal years. Subsequently, in July of 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), both of which clarify and enhance certain made in ASU 2016-02 and will be adopted in conjunction with ASU 2016-02. We believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would not have a material impact on our financial statement presentation or disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Principal Classes of Assets | Estimated useful lives of the principal classes of assets are as follows: Lab equipment 5 – 7 years Computer hardware and software 3 – 7 years Leasehold improvements 2 – 5 years or the term of the lease, if shorter Furniture, fixtures and equipment 5 – 10 years |
Schedule of Revenues by Customer Type | The following table shows our revenues by customer type during the years ended December 31, 2018, 2017 and 2016 (in thousands): 2018 2017 2016 Direct customers $ 5,694 $ 6,727 $ 3,822 Indirect channel 1,202 1,237 163 Total $ 6,896 $ 7,964 $ 3,985 |
Schedule of Customer Concentration of Risk in Accounts Receivable | As of December 31, 2018 and 2017, the following customers comprised more than 10% accounts receivable: 2018 2017 Customer 1 55 % — % Customer 2 22 % 8 % Customer 3 21 % 8 % Customer 4 — % 17 % Customer 5 — % 16 % Customer 6 — % 11 % |
Schedule of Geographic Concentration of Risk in Revenue | During the years ended December 31, 2018, 2017 and 2016, regional revenue, based on customer locations which comprised more than 10% of revenues, consisted of the following: 2018 2017 2016 United States 56 % 53 % 47 % Italy 10 % 13 % 17 % France 10 % 8 % 9 % Germany 4 % 3 % 12 % |
Schedule of Net Loss Per Share | At December 31, 2018, 2017 and 2016, we excluded the outstanding securities summarized below, which entitle the holders thereof to ultimately acquire shares of common stock, from our calculation of earnings per share, as their effect would have been anti-dilutive (in thousands). 2018 2017 2016 Underwriter’s warrants 802 802 802 Warrants issued with convertible debt — 676 1,039 Warrants issued with 2017 Rights Offering 13,647 13,652 — Common stock options 7,120 5,675 3,667 Common stock issuable — 82 77 Restricted stock units 35 83 131 Employee stock purchase plan 405 271 206 Total 22,009 21,241 5,922 |
Money Market Funds (Tables)
Money Market Funds (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Money Market Funds at their Level within the Fair Value Hierarchy | The following table presents money market funds at their level within the fair value hierarchy at December 31, 2018 and 2017 (in thousands). Total Level 1 Level 2 Level 3 December 31, 2018: Money market funds $ 4,156 $ 4,156 $ — $ — December 31, 2017: Money market funds $ 7,235 $ 7,235 $ — $ — |
Selected Balance Sheet Detail (
Selected Balance Sheet Detail (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Inventories | Inventories consisted of the following at December 31, 2018 and 2017 (in thousands): 2018 2017 Raw materials $ 791 $ 485 Work in process 3,055 2,620 Finished goods 2,089 1,660 5,935 4,765 Allowance for excess and obsolescence (2,685 ) (2,065 ) Inventories, net $ 3,250 $ 2,700 |
Schedule of Property and Equipment | Property and equipment consisted of the following at December 31, 2018 and 2017 (in thousands): 2018 2017 Laboratory equipment $ 2,482 $ 2,450 Computer hardware and software 1,456 1,329 Leasehold improvements 298 298 Furniture, fixtures and equipment 46 46 4,282 4,123 Accumulated depreciation and amortization (3,257 ) (2,824 ) Property and equipment, net $ 1,025 $ 1,299 |
Schedule of Contract Liabilities | Contract liabilities consisted of the following at December 31, 2018 and 2017 (in thousands 2018 2017 Beginning Balance $ 48 $ 85 Consideration received in advance of revenue recognition 551 769 Revenue recognized (432 ) (806 ) Ending Balance $ 167 $ 48 |
Schedule of Allowance for Doubtful Accounts | Allowance for doubtful accounts consisted of the following at December 31, 2018 and 2017 (in thousands): 2018 2017 Beginning Balance $ 74 $ 212 Additions 107 — (Write-offs)Recoveries — (138 ) Ending Balance $ 181 $ 74 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Warrants And Rights Note Disclosure [Abstract] | |
Summary of Warrant Activity | A summary of warrant activity for the years ended December 31, 2018, 2017 and 2016 is presented below (in thousands, except per share and contractual life data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Warrants outstanding at December 31, 2015 1,840 $ 7.72 Granted — — Exercised — — Forfeited or expired — — Warrants outstanding at December 31, 2016 1,840 $ 7.72 Granted 13,652 1.47 Exercised — — Forfeited or expired (362 ) 5.00 Warrants outstanding at December 31, 2017 15,130 $ 2.15 Granted — — Exercised (5 ) 1.47 Forfeited or expired (676 ) 5.00 Warrants outstanding at December 31, 2018 14,449 $ 2.01 3.10 Warrants exercisable at December 31, 2018 14,449 $ 2.01 3.10 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Option Grant using the Black-Scholes Option-pricing Model | The calculated value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions 2018 2017 2016 Risk-free interest rate 2.32% – 3.05% 1.92% – 2.25% 1.40%–2.03% Expected dividend yield 0% 0% 0% Expected volatility 67.0% 48.0% 47.6%–48.2% Expected term 5.50-6.11 years 6.25 years 6.25 years Weighted-average grant date calculated fair value $ 1.20 $ 0.90 $ 1.97 |
Summary of Stock Option Activity | A summary of stock option activity for the years ended December 31, 2018, 2017 and 2016 is presented below (in thousands, except per share and contractual life data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Options outstanding at December 31, 2015 3,472 $ 8.01 Granted 745 4.18 Exercised (96 ) 5.00 Forfeited or expired (454 ) 8.66 Options outstanding at December 31, 2016 3,667 $ 7.23 Granted 2,701 1.80 Exercised — — Forfeited or expired (693 ) 5.38 Options outstanding at December 31, 2017 5,675 $ 4.87 Granted 3,178 1.94 Exercised (76 ) 1.95 Forfeited or expired (1,657 ) 3.83 Options outstanding at December 31, 2018 7,120 $ 3.83 6.81 Options exercisable at December 31, 2018 2,978 $ 5.94 4.42 |
Summary of Exercise Prices of Common Stock Options Outstanding and Exercisable | The exercise prices of common stock options outstanding and exercisable are as follows at December 31, 2018 (in thousands): Exercise Price Options Outstanding (Shares) Options Exercisable (Shares) $ 0.91 to 1.97 3,455 953 $ 2.01 to 2.06 1,305 — $ 2.07 to 5.00 898 751 $ 5.16 to 9.00 792 724 $ 9.01 to 13.90 670 550 7,120 2,978 |
Summary of Restricted Stock Unit (RSU) Activity | The following table presented below summarizes Restricted Stock Unit (RSU) activity for the years ended December 31, 2018, 2017 and 2016 (in thousands, except per share data): Number of Awards Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2015 190 $ 12.43 Awarded — — Vested 59 12.43 Forfeited/canceled — — Outstanding as of December 31, 2016 131 $ 12.43 Awarded — — Vested 48 12.43 Forfeited/canceled — — Outstanding as of December 31, 2017 83 $ 12.43 Awarded — — Vested 48 12.43 Forfeited/canceled — — Outstanding as of December 31, 2018 35 $ 12.43 |
Summary of stock-Based Compensation Recognized for Stock-Based Awards Granted | The total stock-based compensation recognized for stock-based awards granted in the consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 is as follows (in thousands): 2018 2017 2016 Cost of sales $ 279 $ 235 $ 312 Research and development 382 288 303 Clinical and regulatory 152 329 173 Selling and marketing 505 339 104 General and administrative 2,271 2,593 2,475 Total $ 3,589 $ 3,784 $ 3,367 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets | Significant components of our deferred tax assets as of December 31, 2018 and 2017 are summarized below (in thousands): 2018 2017 Stock-based compensation $ 4,297 $ 3,346 Research credits 7,003 5,858 Depreciation (48 ) (41 ) Net operating loss carryforwards 20,315 14,088 Inventory reserve 651 467 Other 643 466 Total deferred tax assets 32,861 24,184 Valuation allowance (32,861 ) (24,184 ) Net deferred tax assets $ — $ — |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Activity in the Company's Warranty Liabilities | A summary of activity of our warranty liabilities, which are included in accrued expenses in the accompanying consolidated balance sheets, for the years ended December 31, 2018, 2017 and 2016 is presented below (in thousands): 2018 2017 2016 Balance, beginning of year $ 1,456 $ 1,525 $ 1,066 Additions 193 470 727 Settlements (264 ) (236 ) (268 ) Adjustments and other 187 (303 ) — Total $ 1,572 $ 1,456 $ 1,525 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments For Operating Leases | Future minimum rental payments required under the operating leases are as follows for the years ended December 31 (in thousands) Years Amount 2019 $ 884 2020 910 2021 937 2022 158 Total $ 2,889 |
Quarterly Financial Summary (_2
Quarterly Financial Summary (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Summary | Quarters Ended (in thousands, except per share data) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Product sales $ 1,767 $ 2,246 $ 1,907 $ 976 Gross profit $ 167 $ 462 $ 1,071 $ 308 Operating loss $ (8,877 ) $ (8,546 ) $ (7,988 ) $ (9,769 ) Net loss $ (8,858 ) $ (8,522 ) $ (7,961 ) $ (9,753 ) Net loss per share – basic and diluted $ (0.12 ) $ (0.12 ) $ (0.12 ) $ (0.17 ) Quarters Ended December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Product sales $ 3,109 $ 1,610 $ 2,236 $ 1,009 Gross profit (loss) $ 1,247 $ 609 $ (1,109 ) $ (118 ) Operating loss $ (7,433 ) $ (6,749 ) $ (6,872 ) $ (7,555 ) Net loss $ (7,409 ) $ (6,716 ) $ (6,843 ) $ (7,548 ) Net loss per share – basic and diluted $ (0.13 ) $ (0.12 ) $ (0.12 ) $ (0.16 ) |
Organization and Business Ope_2
Organization and Business Operations - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 22, 2019 | Jan. 25, 2019 | Dec. 12, 2018 | Oct. 18, 2018 | Aug. 14, 2018 | May 03, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Mar. 31, 2017 | Mar. 06, 2017 | Jun. 30, 2016 | Feb. 28, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2007 |
Organization And Business Operations [Line Items] | ||||||||||||||||||||||||||
Net sales | $ 1,767 | $ 2,246 | $ 1,907 | $ 976 | $ 3,109 | $ 1,610 | $ 2,236 | $ 1,009 | $ 6,896 | $ 7,964 | $ 3,985 | |||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||||
Organization And Business Operations [Line Items] | ||||||||||||||||||||||||||
Stock market granted consecutive trading days preceding date of letter | 30 days | |||||||||||||||||||||||||
Closing bid price per NASDAQ listing notification letter | $ 1 | |||||||||||||||||||||||||
Argus II Product [Member] | ||||||||||||||||||||||||||
Organization And Business Operations [Line Items] | ||||||||||||||||||||||||||
Net sales | $ 6,900 | $ 8,000 | $ 4,000 | |||||||||||||||||||||||
Right Offering [Member] | ||||||||||||||||||||||||||
Organization And Business Operations [Line Items] | ||||||||||||||||||||||||||
Proceeds from issuance or sale of equity, total | $ 19,700 | $ 19,500 | ||||||||||||||||||||||||
Share Price | $ 1.47 | |||||||||||||||||||||||||
Number of shares issued upon right offering | 13,700,000 | 5,978,465 | ||||||||||||||||||||||||
Share price (in dollars per share) | $ 1.47 | $ 3.315 | ||||||||||||||||||||||||
Warrants to purchase shares of common stock | 5,055 | 5,055 | 5,055 | 5,055 | ||||||||||||||||||||||
Right Offering [Member] | Subsequent Event [Member] | ||||||||||||||||||||||||||
Organization And Business Operations [Line Items] | ||||||||||||||||||||||||||
Proceeds from issuance or sale of equity, total | $ 34,600 | |||||||||||||||||||||||||
Number of shares issued upon right offering | 47,800,000 | |||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.724 | |||||||||||||||||||||||||
Warrants to purchase shares of common stock | 1 | |||||||||||||||||||||||||
Number of securities called by each warrant or right | 1 | |||||||||||||||||||||||||
Strike price of exercisable warrant | $ 1.47 | |||||||||||||||||||||||||
At Market Issuance Sales Agreement [Member] | ||||||||||||||||||||||||||
Organization And Business Operations [Line Items] | ||||||||||||||||||||||||||
Proceeds from issuance or sale of equity, total | $ 4,000 | $ 5,100 | $ 5,100 | |||||||||||||||||||||||
Issuance of shares common stock, net of issuance costs (in shares) | 598,276 | |||||||||||||||||||||||||
Sale of Stock, commission paid to agents, percentage of gross proceeds | 3.00% | |||||||||||||||||||||||||
Gross proceeds from issuance or sale of shares | $ 1,200 | |||||||||||||||||||||||||
Issuance of shares of common stock in connection with ATM, net of expenses (in shares) | 2,200,000 | 0 | ||||||||||||||||||||||||
Entities Beneficially Owned by Mr. Gregg Williams [Member] | Right Offering [Member] | Subsequent Event [Member] | ||||||||||||||||||||||||||
Organization And Business Operations [Line Items] | ||||||||||||||||||||||||||
Proceeds from issuance or sale of equity, total | $ 30,000 | |||||||||||||||||||||||||
Number of shares issued upon right offering | 41,400,000 | |||||||||||||||||||||||||
Entities Beneficially Owned by Mr. Gregg Williams [Member] | Stock Purchase Agreement [Member] | ||||||||||||||||||||||||||
Organization And Business Operations [Line Items] | ||||||||||||||||||||||||||
Proceeds from issuance or sale of equity, total | $ 3,000 | $ 4,000 | $ 5,000 | $ 10,000 | $ 22,000 | |||||||||||||||||||||
Issuance of shares common stock, net of issuance costs (in shares) | 3,275,100 | 2,467,727 | 3,225,807 | 6,756,757 | ||||||||||||||||||||||
Share Price | $ 0.916 | $ 1.62 | $ 1.55 | $ 1.48 | ||||||||||||||||||||||
Second Sight (Switzerland) Sarl [Member] | ||||||||||||||||||||||||||
Organization And Business Operations [Line Items] | ||||||||||||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 100.00% | 100.00% | 100.00% | 100.00% | 99.50% | |||||||||||||||||||||
Second Sight (Switzerland) Sarl [Member] | Executive Officer [Member] | ||||||||||||||||||||||||||
Organization And Business Operations [Line Items] | ||||||||||||||||||||||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 0.50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Dec. 21, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)CustomerChannel | Dec. 31, 2017USD ($)Customer | Dec. 31, 2016USD ($)Customer |
Summary Of Significant Accounting Policies [Line Items] | |||||
Allowance for doubtful accounts | $ 181,000 | $ 181,000 | $ 74,000 | $ 212,000 | |
Impairment losses recognized | 0 | 0 | 0 | ||
Depreciation and amortization of property and equipment | 400,000 | 500,000 | 400,000 | ||
Research and development costs | 10,005,000 | 7,893,000 | 5,347,000 | ||
Patent costs | 600,000 | 700,000 | 700,000 | ||
Grants offset against operating expenses | 200,000 | $ 400,000 | $ 2,400,000 | ||
FDIC insured amount | 250,000 | 250,000 | |||
SPIC insured amount | 500,000 | 500,000 | |||
SPIC cash limit coverage | 250,000 | $ 250,000 | |||
Number of customer represented 10% or more of revenue | Customer | 2 | 1 | 1 | ||
Assets | 10,682,000 | $ 10,682,000 | $ 14,497,000 | ||
Net operating loss carryforwards limitations | We have analyzed the available information to determine the amount of the annual limitation. Based on information available us, the 2017 limitation is estimated to range between be $1.4 million and $3.7 million annually. In total, we estimate that the 2017 ownership change will result in approximately $120 million and $56 million of federal and state net operating loss carryforwards expiring unused. | ||||
Previous federal corporate tax rate | 35.00% | 35.00% | |||
Revised federal corporate tax rate | 21.00% | ||||
Tax cuts and jobs act of 2017 change in tax rate increase decrease deferred tax asset | 7,500,000 | ||||
Manufacture warranty period | 3 years | ||||
Restructuring charges | 600,000 | $ 555,000 | |||
Number of main sales channels | Channel | 2 | ||||
Federal | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Net operating losses carryforward | 69,400,000 | $ 69,400,000 | |||
Federal | Net Operating Loss Carryforwards Expiring Unused | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Net operating losses carryforward | 120,000,000 | ||||
State | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Net operating losses carryforward | 42,500,000 | $ 42,500,000 | |||
State | Net Operating Loss Carryforwards Expiring Unused | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Net operating losses carryforward | 56,000,000 | ||||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Limitation arising from estimated ownership change | 1,400,000 | ||||
Minimum | Federal | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Operating loss carryforwards expiration year | 2035 | ||||
Minimum | State | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Operating loss carryforwards expiration year | 2033 | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Limitation arising from estimated ownership change | 3,700,000 | ||||
Product warranty replacement period | 2 years | ||||
Maximum | Federal | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Operating loss carryforwards expiration year | 2038 | ||||
Maximum | State | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Operating loss carryforwards expiration year | 2038 | ||||
SWITZERLAND | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Assets | $ 1,500,000 | $ 1,500,000 | $ 2,700,000 | ||
Sales Revenue, Net | Customer 1 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Customer concentration | 10.00% | 10.00% | 13.00% | ||
Sales Revenue, Net | Customer 2 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Customer concentration | 10.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Principal Classes of Assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Lab Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Lab Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 7 years |
Computer Hardware and Software | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer Hardware and Software | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 7 years |
Leasehold Improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 2 years |
Leasehold Improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture, Fixtures and Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture, Fixtures and Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Revenues by Customer Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||||||||||
Revenues, total | $ 1,767 | $ 2,246 | $ 1,907 | $ 976 | $ 3,109 | $ 1,610 | $ 2,236 | $ 1,009 | $ 6,896 | $ 7,964 | $ 3,985 |
Direct Customers | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues, total | 5,694 | 6,727 | 3,822 | ||||||||
Indirect Channel | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues, total | $ 1,202 | $ 1,237 | $ 163 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Customer Concentration of Risk in Accounts Receivable (Details) - Accounts Receivable | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer 1 | ||
Concentration Risk [Line Items] | ||
Customer concentration | 55.00% | |
Customer 2 | ||
Concentration Risk [Line Items] | ||
Customer concentration | 22.00% | 8.00% |
Customer 3 | ||
Concentration Risk [Line Items] | ||
Customer concentration | 21.00% | 8.00% |
Customer 4 | ||
Concentration Risk [Line Items] | ||
Customer concentration | 17.00% | |
Customer 5 | ||
Concentration Risk [Line Items] | ||
Customer concentration | 16.00% | |
Customer 6 | ||
Concentration Risk [Line Items] | ||
Customer concentration | 11.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Geographic Concentration of Risk in Revenue (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
UNITED STATES | |||
Concentration Risk [Line Items] | |||
Geographic concentration | 56.00% | 53.00% | 47.00% |
ITALY | |||
Concentration Risk [Line Items] | |||
Geographic concentration | 10.00% | 13.00% | 17.00% |
FRANCE | |||
Concentration Risk [Line Items] | |||
Geographic concentration | 10.00% | 8.00% | 9.00% |
GERMANY | |||
Concentration Risk [Line Items] | |||
Geographic concentration | 4.00% | 3.00% | 12.00% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Net Loss Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Calculation of earnings per share common stock anti-dilutive securities | 22,009 | 21,241 | 5,922 |
Underwriter’s Warrants | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Calculation of earnings per share common stock anti-dilutive securities | 802 | 802 | 802 |
Warrants Issued with Convertible Debt | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Calculation of earnings per share common stock anti-dilutive securities | 676 | 1,039 | |
Warrants Issued with 2017 Rights Offering | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Calculation of earnings per share common stock anti-dilutive securities | 13,647 | 13,652 | |
Common Stock Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Calculation of earnings per share common stock anti-dilutive securities | 7,120 | 5,675 | 3,667 |
Common Stock Issuable | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Calculation of earnings per share common stock anti-dilutive securities | 82 | 77 | |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Calculation of earnings per share common stock anti-dilutive securities | 35 | 83 | 131 |
Employee Stock Purchase Plan | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Calculation of earnings per share common stock anti-dilutive securities | 405 | 271 | 206 |
Money Market Funds - Additional
Money Market Funds - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Line Items] | ||
Deposit account | $ 200 | $ 200 |
Money Market Funds [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Money market funds included in cash equivalents | $ 4,156 | 7,235 |
City National Rochdale Government Fund Class S [Member] | Money Market Funds [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Money market funds included in cash equivalents | 700 | |
FFI Institutional Fund [Member] | Money Market Funds [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Money market funds included in cash equivalents | $ 6,300 |
Money Market Funds - Schedule o
Money Market Funds - Schedule of Money Market Funds at their Level within the Fair Value Hierarchy (Details) - Money Market Funds [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Money market funds | $ 4,156 | $ 7,235 |
Level 1 [Member] | ||
Money market funds | $ 4,156 | $ 7,235 |
Selected Balance Sheet Detail -
Selected Balance Sheet Detail - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Raw materials | $ 791 | $ 485 |
Work in process | 3,055 | 2,620 |
Finished goods | 2,089 | 1,660 |
Inventories, gross | 5,935 | 4,765 |
Allowance for excess and obsolescence | (2,685) | (2,065) |
Inventories, net | $ 3,250 | $ 2,700 |
Selected Balance Sheet Detail_2
Selected Balance Sheet Detail - Additional Information (Details) $ in Millions | Dec. 31, 2017USD ($) |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Charge for excess inventory | $ 3.1 |
Selected Balance Sheet Detail_3
Selected Balance Sheet Detail - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,282 | $ 4,123 |
Accumulated depreciation and amortization | (3,257) | (2,824) |
Property and equipment, net | 1,025 | 1,299 |
Laboratory Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,482 | 2,450 |
Computer Hardware and Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,456 | 1,329 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 298 | 298 |
Furniture, Fixtures and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 46 | $ 46 |
Selected Balance Sheet Detail_4
Selected Balance Sheet Detail - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue From Contract With Customer [Abstract] | ||
Beginning Balance | $ 48 | $ 85 |
Consideration received in advance of revenue recognition | 551 | 769 |
Revenue recognized | (432) | (806) |
Ending Balance | $ 167 | $ 48 |
Selected Balance Sheet Detail_5
Selected Balance Sheet Detail - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning Balance | $ 74 | $ 212 |
Additions | 107 | |
(Write-offs)Recoveries | (138) | |
Ending Balance | $ 181 | $ 74 |
Grants - Additional Information
Grants - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Grants [Line Items] | ||||
Lump sum amount paid for research by APL | $ 4.1 | |||
Common shares issued to APL | 1,000,000 | 76,336,000 | 57,630,000 | |
Royalty of net sales of licensed products | 0.25% | |||
Received grant | $ 1.6 | |||
Grant receivable with intent to fund early feasibility clinical trial for five years | $ 6.4 | |||
Grant received funding period | 5 years | |||
Deferred grant costs | $ 0.5 | |||
APL [Member] | ||||
Grants [Line Items] | ||||
Research and development expenses offset | $ 0 | $ 0.1 | $ 2.1 |
Warrants - Additional Informati
Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Mar. 06, 2017 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | |
Class Of Warrant Or Right [Line Items] | ||||||||
Borrowed fund by issuing convertible notes | $ 29,500 | |||||||
Right Offering [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants to purchase shares of common stock | 5,055 | |||||||
Number of shares issued upon right offering | 13,700,000 | 5,978,465 | ||||||
Share price (in dollars per share) | $ 1.47 | $ 3.315 | ||||||
Additional share price (in dollars per share) | $ 1.47 | |||||||
Term of warrants | 5 years | |||||||
Warrant | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants exercise price (in dollars per share) | $ 2.01 | $ 5 | $ 2.15 | $ 7.72 | $ 7.72 | |||
Warrants to purchase shares of common stock | 1,200,000 | |||||||
Number of warrant outstanding | 14,449,000 | 15,130,000 | 1,840,000 | 1,840,000 | ||||
Warrants exercisable, intrinsic value | $ 0 | |||||||
Underwriter’s Warrants | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants exercise price (in dollars per share) | $ 11.25 | |||||||
Number of warrant outstanding | 802,000 | |||||||
Purchase of common stock by underwriter granted | 805,000 | |||||||
Convertible Notes Issued | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Interest rate on convertible notes | 7.50% | |||||||
Number of shares issued upon debt conversion | 6,600,000 | |||||||
Convertible Notes Issued in 2012 | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Number of warrant outstanding | 361,909 | |||||||
Warrants expiration date | Jul. 31, 2017 | |||||||
Convertible Notes Issued in 2013 | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Number of warrant outstanding | 676,494 | |||||||
Warrants expiration date | Feb. 28, 2018 |
Warrants - Summary of Warrants
Warrants - Summary of Warrants Activity (Details) - Warrant - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Warrant or Right, Outstanding [Roll Forward] | ||
Outstanding at beginning | 15,130,000 | 1,840,000 |
Granted | 13,652,000 | |
Exercised | (5,000) | |
Forfeited or expired | (676,000) | (362,000) |
Outstanding at ending | 14,449,000 | 15,130,000 |
Exercisable at ending | 14,449,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights [Roll Forward] | ||
Outstanding at beginning | $ 2.15 | $ 7.72 |
Granted | 1.47 | |
Exercised | 1.47 | |
Forfeited or expired | 5 | 5 |
Outstanding at ending | 2.01 | $ 2.15 |
Exercisable at ending | $ 2.01 | |
Class of Warrant or Right, Weighted Average Remaining Contractual Life of Warrants or Rights [Roll Forward] | ||
Outstanding at ending | 3 years 1 month 6 days | |
Exercisable at ending | 3 years 1 month 6 days |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employer contributions to plan | $ 0.2 | $ 0.1 | $ 0.1 |
Pension plan for the employees | $ 0.1 | $ 0.1 | $ 0.1 |
Equity Securities - Additional
Equity Securities - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 12, 2018 | Oct. 18, 2018 | Aug. 14, 2018 | May 03, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Mar. 06, 2017 | Jun. 30, 2016 | Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2014 |
Class Of Stock [Line Items] | |||||||||||||||
Number of shares issued for services (in shares) | 223,000 | 82,000 | |||||||||||||
Shares issued for services to directors, amount | $ 300 | $ 300 | |||||||||||||
Stock-based compensation expense | $ 3,589 | $ 3,784 | $ 3,367 | ||||||||||||
Accrued services, shares | 82,000 | 82,000 | 77,000 | ||||||||||||
Accrued services, Closing price per share | $ 1.86 | $ 1.86 | $ 1.98 | ||||||||||||
Accrued services | $ 200 | $ 200 | |||||||||||||
At-the-Market Sales Agreement | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Proceeds from issuance or sale of equity, total | $ 1,100 | $ 4,000 | |||||||||||||
Number of shares issued (in shares) | 598,276 | 2,200,000 | |||||||||||||
Gross proceeds from issuance or sale of shares | $ 1,200 | $ 4,100 | |||||||||||||
Shares issuance expenses | $ 100 | ||||||||||||||
Right Offering [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Proceeds from issuance or sale of equity, total | $ 19,700 | $ 19,500 | |||||||||||||
Number of shares issued upon right offering | 13,700,000 | 5,978,465 | |||||||||||||
Share price (in dollars per share) | $ 1.47 | $ 3.315 | |||||||||||||
Percentage of company's stock price at the close of the rights offering | 85.00% | ||||||||||||||
Share Price | $ 1.47 | ||||||||||||||
Term of warrants | 5 years | ||||||||||||||
Description for redemption of warrants | the warrants are redeemable on 30 days’ notice (i) at any time 24 months after the date of issuance, (ii) if the shares of our common stock are trading at $2.94, which is 200% of the Subscription Price, for 15 consecutive trading days and (iii) if all of the independent directors vote in favor of redeeming the warrants. Holders may be able to sell or exercise warrants prior to any announced redemption date and we may redeem outstanding warrants not exercised by the announced redemption date, at our option, for a nominal amount of $0.01 per warrant. | ||||||||||||||
Stock Purchase Agreement [Member] | Entities Beneficially Owned by Mr. Gregg Williams [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Proceeds from issuance or sale of equity, total | $ 3,000 | $ 4,000 | $ 5,000 | $ 10,000 | $ 22,000 | ||||||||||
Share Price | $ 0.916 | $ 1.62 | $ 1.55 | $ 1.48 | |||||||||||
Number of shares issued (in shares) | 3,275,100 | 2,467,727 | 3,225,807 | 6,756,757 | |||||||||||
Direcotors [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Board of director cash compensation | $ 100 | ||||||||||||||
Stock-based compensation expense | $ 100 | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Increase authorized shares | 200,000,000 | ||||||||||||||
Par value | $ 0 | ||||||||||||||
Number of shares issued for services (in shares) | 132,996 | 223,000 | 82,000 | ||||||||||||
Shares issued for services to directors, amount | $ 300 | ||||||||||||||
Number of shares issued (in shares) | 17,949,000 | 598,000 | |||||||||||||
Preferred Stock [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Increase authorized shares | 10,000,000 | ||||||||||||||
Par value | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | May 31, 2021 | Jan. 31, 2018 | Oct. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock-based compensation | $ 3,589,000 | $ 3,784,000 | $ 3,367,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 3 months | 6 years 3 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 67.00% | 48.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% | ||||
Allocated Share-based Compensation Expense, Total | $ 3,589,000 | $ 3,784,000 | $ 3,367,000 | ||||
Employee Stock Option | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation , share options granted | 3,178,000 | 2,701,000 | 745,000 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.94 | $ 1.80 | $ 4.18 | ||||
Restricted Stock Units (RSUs) | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 7 months 17 days | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 400,000 | ||||||
Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 6 months | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 47.60% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.32% | 1.92% | 1.40% | ||||
Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 1 month 9 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 48.20% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 3.05% | 2.25% | 2.03% | ||||
2011 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares authorized | 3,500,000 | ||||||
Number of shares options granted | 7,500,000 | ||||||
Exercisable terms | 10 years | ||||||
Intrinsic value of stock options exercisable | $ 0 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 4,000,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 7 months 6 days | ||||||
2011 Equity Incentive Plan | Certain Employees and Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation , share options granted | 3,148,252 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Fair Value | $ 3,800,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 67.00% | ||||||
2011 Equity Incentive Plan | Consultant [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense, Total | $ 400,000 | ||||||
2011 Equity Incentive Plan | Outside Attorney | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation , share options granted | 40,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.76 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Fair Value | $ 19,640,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.49 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 48.00% | ||||||
Percentage of fair value common stock granted | 120.00% | ||||||
2011 Equity Incentive Plan | Outside Contractor | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation , share options granted | 30,000 | 150,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | 10 years | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 2.06 | $ 1.21 | |||||
Shares issuance expenses | $ 43,000 | $ 11,000 | |||||
2011 Equity Incentive Plan | Employee Stock Option | Certain Employees and Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||
2011 Equity Incentive Plan | Employee Stock Option | Outside Attorney | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.81% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||
2011 Equity Incentive Plan | Employee Stock Option | Outside Contractor | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | 4 years | |||||
2011 Equity Incentive Plan | Scenario, Forecast | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation , share options granted | 0 | ||||||
2011 Equity Incentive Plan | Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||
2011 Equity Incentive Plan | Minimum | Certain Employees and Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.92 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.57 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 6 months | ||||||
2011 Equity Incentive Plan | Minimum | Employee Stock Option | Certain Employees and Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.32% | ||||||
2011 Equity Incentive Plan | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares options granted | 12,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||
2011 Equity Incentive Plan | Maximum | Certain Employees and Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 2.07 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.30 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 1 month 9 days | ||||||
2011 Equity Incentive Plan | Maximum | Employee Stock Option | Certain Employees and Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 3.05% | ||||||
The 2015 Employee Stock Purchase Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares authorized | 1,550,000 | ||||||
Common stock purchases interval period | 6 months | ||||||
Percentage of fair market value of Common stock | 85.00% | ||||||
Aggregate fair market value of common stock | $ 25,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 1,143,112 | ||||||
The 2015 Employee Stock Purchase Plan | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of common stock shares | 100,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option Grant using the Black-Scholes Option-pricing Model (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 67.00% | 48.00% | |
Expected term | 6 years 3 months | 6 years 3 months | |
Weighted-average grant date calculated fair value | $ 1.20 | $ 0.90 | $ 1.97 |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.32% | 1.92% | 1.40% |
Expected volatility | 47.60% | ||
Expected term | 5 years 6 months | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 3.05% | 2.25% | 2.03% |
Expected volatility | 48.20% | ||
Expected term | 6 years 1 month 9 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) - Employee Stock Option - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options outstanding, number of shares (in shares) | 5,675 | 3,667 | 3,472 |
Granted, number of shares (in shares) | 3,178 | 2,701 | 745 |
Exercised, number of shares (in shares) | (76) | (96) | |
Forfeited or expired, number of shares (in shares) | (1,657) | (693) | (454) |
Options outstanding, number of shares (in shares) | 7,120 | 5,675 | 3,667 |
Options exercisable, number of shares (in shares) | 2,978 | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 4.87 | $ 7.23 | $ 8.01 |
Granted, weighted average exercise price (in dollars per share) | 1.94 | 1.80 | 4.18 |
Exercised, weighted average exercise price (in dollars per share) | 1.95 | 5 | |
Forfeited or expired, weighted average exercise price (in dollars per share) | 3.83 | 5.38 | 8.66 |
Options outstanding, weighted average exercise price (in dollars per share) | 3.83 | $ 4.87 | $ 7.23 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 5.94 | ||
Options outstanding, weighted average remaining contractual life (Year) | 6 years 9 months 21 days | ||
Options exercisable, weighted average remaining contractual life (Year) | 4 years 5 months 1 day |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Exercise Prices of Common Stock Options Outstanding and Exercisable (Details) | Dec. 31, 2018shares |
Exercise Price Range $0.91 to $1.97 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 3,455,000 |
Options Exercisable (in shares) | 953,000 |
Exercise Price Range $0.91 to $1.97 | Minimum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 0.91 |
Exercise Price Range $0.91 to $1.97 | Maximum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 1.97 |
Exercise Price Range $2.01 to $2.06 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 1,305,000 |
Exercise Price Range $2.01 to $2.06 | Minimum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 2.01 |
Exercise Price Range $2.01 to $2.06 | Maximum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 2.06 |
Exercise Price Range $2.07 to $5.00 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 898,000 |
Options Exercisable (in shares) | 751,000 |
Exercise Price Range $2.07 to $5.00 | Minimum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 2.07 |
Exercise Price Range $2.07 to $5.00 | Maximum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 5 |
Exercise Price Range $5.16 to $9.00 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 792,000 |
Options Exercisable (in shares) | 724,000 |
Exercise Price Range $5.16 to $9.00 | Minimum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 5.16 |
Exercise Price Range $5.16 to $9.00 | Maximum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 9 |
Exercise Price Range $9.01 to $13.90 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 670,000 |
Options Exercisable (in shares) | 550,000 |
Exercise Price Range $9.01 to $13.90 | Minimum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 9.01 |
Exercise Price Range $9.01 to $13.90 | Maximum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 13.90 |
Exercise Price Range | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 7,120,000 |
Options Exercisable (in shares) | 2,978,000 |
Stock-based Compensation - Su_4
Stock-based Compensation - Summary of Restricted Stock Unit (RSU) Activity (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Outstanding, number of awards (in shares) | 83 | 131 | 190 |
Vested (in shares) | 48 | 48 | 59 |
Outstanding, number of awards (in shares) | 35 | 83 | 131 |
Outstanding, weighted average grant date fair value per share (in dollars per share) | $ 12.43 | $ 12.43 | $ 12.43 |
Vested, weighted average grant date fair value per share (in dollars per share) | 12.43 | 12.43 | 12.43 |
Outstanding, weighted average grant date fair value per share (in dollars per share) | $ 12.43 | $ 12.43 | $ 12.43 |
Stock-based Compensation - Su_5
Stock-based Compensation - Summary of stock-based compensation recognized for Stock-Based Awards Granted (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allocated share-based compensation expense | $ 3,589 | $ 3,784 | $ 3,367 |
Cost of Sales | |||
Allocated share-based compensation expense | 279 | 235 | 312 |
Research and Development | |||
Allocated share-based compensation expense | 382 | 288 | 303 |
Clinical and Regulatory | |||
Allocated share-based compensation expense | 152 | 329 | 173 |
Selling and Marketing | |||
Allocated share-based compensation expense | 505 | 339 | 104 |
General and Administrative | |||
Allocated share-based compensation expense | $ 2,271 | $ 2,593 | $ 2,475 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Stock-based compensation | $ 4,297 | $ 3,346 |
Research credits | 7,003 | 5,858 |
Depreciation | (48) | (41) |
Net operating loss carryforwards | 20,315 | 14,088 |
Inventory reserve | 651 | 467 |
Other | 643 | 466 |
Total deferred tax assets | 32,861 | 24,184 |
Valuation allowance | $ (32,861) | $ (24,184) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 21, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax [Line Items] | ||||
Federal income tax provision | $ 0 | $ 0 | $ 0 | |
Income tax benefit | $ 0 | |||
Effective federal statutory rate | 21.00% | |||
Research and development tax credit carryforwards expired | 2023 through 2038 | |||
Uncertain tax positions, accrued interest or penalties | $ 0 | 0 | ||
Previous federal corporate tax rate | 35.00% | 35.00% | ||
Revised federal corporate tax rate | 21.00% | |||
Tax cuts and jobs act of 2017 change in tax rate increase decrease deferred tax asset. | 7,500,000 | |||
Federal | ||||
Income Tax [Line Items] | ||||
Net operating losses carryforward | $ 69,400,000 | |||
Net operating loss carryforwards expired | 2035 through 2038 | |||
Research and development tax credit carryforwards | $ 3,801,000 | |||
Federal | Net Operating Loss Carryforwards Expiring Unused | ||||
Income Tax [Line Items] | ||||
Net operating losses carryforward | 120,000,000 | |||
State | ||||
Income Tax [Line Items] | ||||
Net operating losses carryforward | $ 42,500,000 | |||
Net operating loss carryforwards expired | 2033 through 2038 | |||
Research and development tax credit carryforwards | $ 3,202,000 | |||
State | Net Operating Loss Carryforwards Expiring Unused | ||||
Income Tax [Line Items] | ||||
Net operating losses carryforward | 56,000,000 | |||
Minimum | ||||
Income Tax [Line Items] | ||||
Limitation arising from estimated ownership change | 1,400,000 | |||
Maximum | ||||
Income Tax [Line Items] | ||||
Limitation arising from estimated ownership change | $ 3,700,000 |
Product Warranties - Schedule o
Product Warranties - Schedule of Activity in the Company's Warranty Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |||
Balance, beginning of year | $ 1,456 | $ 1,525 | $ 1,066 |
Additions | 193 | 470 | 727 |
Settlements | (264) | (236) | (268) |
Adjustments and other | 187 | (303) | |
Total | $ 1,572 | $ 1,456 | $ 1,525 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2014 | Aug. 31, 2012 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018CHF (SFr) | |
Commitments And Contingencies [Line Items] | ||||||
Lease rent expense | $ 1,000,000 | $ 1,000,000 | $ 1,100,000 | |||
Lease commitment | $ 8,161 | |||||
License royalty rate | 0.50% | |||||
Agreements incurred cost | $ 4,888,000 | 5,117,000 | 10,076,000 | |||
Clinical and regulatory expense | 1,800,000 | 800,000 | 800,000 | |||
License Fee | ||||||
Commitments And Contingencies [Line Items] | ||||||
Agreements incurred cost | 100,000 | $ 100,000 | $ 100,000 | |||
CHF | ||||||
Commitments And Contingencies [Line Items] | ||||||
Lease commitment | SFr | SFr 8,200 | |||||
Sylmar Lease | ||||||
Commitments And Contingencies [Line Items] | ||||||
Lease rent expense | $ 36,600 | |||||
Lease agreement term | 5 years | |||||
Lease agreement maturity date | Feb. 28, 2022 | Feb. 28, 2017 | ||||
Lease agreement renew term | 5 years | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Rental Payments For Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 | $ 884 |
2020 | 910 |
2021 | 937 |
2022 | 158 |
Total | $ 2,889 |
Quarterly Financial Summary (_3
Quarterly Financial Summary (unaudited) - Schedule of Quarterly Financial Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Product sales | $ 1,767 | $ 2,246 | $ 1,907 | $ 976 | $ 3,109 | $ 1,610 | $ 2,236 | $ 1,009 | $ 6,896 | $ 7,964 | $ 3,985 |
Gross profit (loss) | 167 | 462 | 1,071 | 308 | 1,247 | 609 | (1,109) | (118) | 2,008 | 2,847 | (6,091) |
Operating loss | (8,877) | (8,546) | (7,988) | (9,769) | (7,433) | (6,749) | (6,872) | (7,555) | (35,180) | (28,609) | (33,210) |
Net loss | $ (8,858) | $ (8,522) | $ (7,961) | $ (9,753) | $ (7,409) | $ (6,716) | $ (6,843) | $ (7,548) | $ (35,094) | $ (28,516) | $ (33,179) |
Net loss per common share – basic and diluted | $ (0.12) | $ (0.12) | $ (0.12) | $ (0.17) | $ (0.13) | $ (0.12) | $ (0.12) | $ (0.16) | $ (0.53) | $ (0.53) | $ (0.84) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 22, 2019 | Jan. 25, 2019 | Mar. 31, 2017 | Mar. 06, 2017 | Jun. 30, 2016 | Feb. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2016 |
Right Offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares issued upon right offering | 13,700,000 | 5,978,465 | ||||||
Share price (in dollars per share) | $ 1.47 | $ 3.315 | ||||||
Proceeds from issuance or sale of equity, total | $ 19.7 | $ 19.5 | ||||||
Stock Option Grants [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Exercise price (in dollars per share) | $ 1.95 | $ 5 | ||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock market granted consecutive trading days preceding date of letter | 30 days | |||||||
Closing bid price per NASDAQ listing notification letter | $ 1 | |||||||
Subsequent Event [Member] | Right Offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares issued upon right offering | 47,800,000 | |||||||
Share price (in dollars per share) | $ 0.724 | |||||||
Proceeds from issuance or sale of equity, total | $ 34.6 | |||||||
Warrants exercise price (in dollars per share) | $ 1.47 | |||||||
Subsequent Event [Member] | Right Offering [Member] | Entities Beneficially Owned by Mr. Gregg Williams [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares issued upon right offering | 41,400,000 | |||||||
Proceeds from issuance or sale of equity, total | $ 30 | |||||||
Warrant expiration date | Mar. 14, 2024 | |||||||
Subsequent Event [Member] | Stock Option Grants [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares options granted | 1,893,862 | |||||||
Exercisable terms | 10 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Subsequent Event [Member] | Stock Option Grants [Member] | Senior Management [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares options granted | 975,000 | |||||||
Subsequent Event [Member] | Stock Option Grants [Member] | Minimum | ||||||||
Subsequent Event [Line Items] | ||||||||
Exercise price (in dollars per share) | $ 0.74 | |||||||
Subsequent Event [Member] | Stock Option Grants [Member] | Maximum | ||||||||
Subsequent Event [Line Items] | ||||||||
Exercise price (in dollars per share) | $ 0.82 | |||||||
Subsequent Event [Member] | Restricted Stock Units (RSUs) | Senior Management [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares options granted | 489,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
RSU, grant date at fair value | $ 0.4 |