Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 13, 2020 | Jun. 28, 2019 | |
Document Information [Line Items] | |||
Entity Registrant Name | SECOND SIGHT MEDICAL PRODUCTS INC | ||
Entity Central Index Key | 0001266806 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 32.6 | ||
Entity Common Stock, Shares Outstanding (in shares) | 15,657,700 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-36747 | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 02-0692322 | ||
Entity Address Address Line1 | 12744 San Fernando Road | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | Sylmar | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91342 | ||
City Area Code | 818 | ||
Local Phone Number | 833-5000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2019 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2019. | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | EYES | ||
Security Exchange Name | NASDAQ | ||
Security12b Title | Common Stock | ||
Warrant [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | EYESW | ||
Security Exchange Name | NASDAQ | ||
Security12b Title | Warrants |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 11,327 | $ 4,471 |
Accounts receivable, net | 455 | 504 |
Inventories, net | 1,029 | 3,250 |
Prepaid expenses and other current assets | 299 | 1,395 |
Total current assets | 13,110 | 9,620 |
Property and equipment, net | 1,122 | 1,025 |
Right-of-use assets | 2,342 | |
Deposits and other assets | 25 | 37 |
Total assets | 16,599 | 10,682 |
Current liabilities: | ||
Accounts payable | 1,093 | 1,305 |
Accrued expenses | 1,889 | 2,503 |
Accrued compensation expense | 2,698 | 2,690 |
Accrued clinical trial expenses | 707 | 933 |
Current operating lease liabilities | 237 | |
Contract liabilities | 335 | 167 |
Total current liabilities | 6,959 | 7,598 |
Long term operating lease liabilities | 2,365 | |
Total liabilities | 9,324 | 7,598 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, no par value, 10,000 shares authorized; none outstanding | ||
Common stock, no par value; 300,000 shares authorized; shares issued and outstanding: 15,643 and 9,542 at December 31, 2019 and December 31, 2018, respectively | 264,008 | 229,019 |
Additional paid-in capital | 48,613 | 44,111 |
Accumulated other comprehensive loss | (562) | (575) |
Accumulated deficit | (304,784) | (269,471) |
Total stockholders’ equity | 7,275 | 3,084 |
Total liabilities and stockholders’ equity | $ 16,599 | $ 10,682 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 15,643,000 | 9,542,000 |
Common stock, shares outstanding (in shares) | 15,643,000 | 9,542,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 3,379 | $ 6,896 |
Cost of sales | 2,152 | 4,888 |
Gross profit | 1,227 | 2,008 |
Operating expenses: | ||
Research and development, net of grants | 13,143 | 10,005 |
Clinical and regulatory, net of grants | 3,354 | 4,600 |
Selling and marketing | 6,101 | 11,336 |
General and administrative | 9,226 | 10,692 |
Restructuring charges | 3,357 | 555 |
Total operating expenses | 35,181 | 37,188 |
Loss from operations | (33,954) | (35,180) |
Interest income | 362 | 86 |
Net loss | $ (33,592) | $ (35,094) |
Net loss per common share – basic and diluted | $ (2.28) | $ (4.23) |
Weighted average shares outstanding – basic and diluted | 14,708 | 8,297 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||||||||
Net loss | $ (7,868) | $ (7,584) | $ (8,440) | $ (9,700) | $ (8,858) | $ (8,522) | $ (7,961) | $ (9,753) | $ (33,592) | $ (35,094) |
Other comprehensive income (loss): | ||||||||||
Foreign currency translation adjustments | 13 | (3) | ||||||||
Comprehensive loss | $ (33,579) | $ (35,097) |
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] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Balance beginning at Dec. 31, 2017 | $ 7,882 | $ 202,156 | $ 153 | $ 40,522 | $ (572) | $ (234,377) |
Balance beginning (in shares) at Dec. 31, 2017 | 7,204 | 10 | ||||
Issuance of shares of common stock, net of issuance costs | 25,936 | $ 25,936 | ||||
Issuance of shares of common stock, net of issuance costs (in shares) | 2,243 | |||||
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) | 62 | |||||
Exercise of stock options | 149 | $ 149 | ||||
Exercise of stock options (in shares) | 9 | |||||
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) | 1 | |||||
Common stock issuance for services | 109 | $ 262 | $ (153) | |||
Common stock issuance for services (in shares) | 17 | (10) | ||||
Release of restricted stock units (in shares) | 6 | |||||
Comprehensive loss: | ||||||
Net loss | (35,094) | (35,094) | ||||
Foreign currency translation adjustment | (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 | 9,542,000 | 9,542 | ||||
Adoption of ASC Topic 842-Leases (see note 2) at Dec. 31, 2018 | $ (144) | (144) | ||||
Warrant Modification | 1,577 | (1,577) | ||||
Issuance of shares of common stock andwarrants in connection with rights offering,net of issuance costs | 34,399 | $ 34,399 | ||||
Issuance of shares of common stock and warrants in connection with rights offering, net of issuance costs (in shares) | 5,976 | |||||
Issuance of shares of common stock, net of issuance costs | 106 | $ 106 | ||||
Issuance of shares of common stock, net of issuance costs (in shares) | 17 | |||||
Issuance of common stock in connection with employee stock purchase plan | 484 | $ 484 | ||||
Issuance of common stock in connection with Employee Stock Purchase Plan (in shares) | 99 | |||||
Stock-based compensation expense | 2,925 | 2,925 | ||||
Common stock issuance for services (in shares) | 17,000 | |||||
Release of restricted stock units (in shares) | 9 | |||||
Comprehensive loss: | ||||||
Net loss | (33,592) | (33,592) | ||||
Foreign currency translation adjustment | 13 | 13 | ||||
Comprehensive loss | (33,579) | 13 | (33,592) | |||
Balance ending at Dec. 31, 2019 | $ 7,275 | $ 264,008 | $ 48,613 | $ (562) | $ (304,784) | |
Balance ending (in shares) at Dec. 31, 2019 | 15,643,000 | 15,643 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (33,592) | $ (35,094) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization of property and equipment | 397 | 435 |
Stock-based compensation | 2,925 | 3,589 |
Non-cash lease expense | 17 | |
Bad debt expense | 107 | |
Restructuring charges-inventory impairment | 2,587 | |
Excess inventory reserve | 619 | |
Common stock issued for services | 109 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 48 | 1,220 |
Inventories | (347) | (1,178) |
Prepaid expenses and other assets | 1,070 | (605) |
Accounts payable | (213) | 554 |
Accrued expenses | (472) | 80 |
Accrued compensation expenses | 8 | 80 |
Accrued clinical trial expenses | (226) | 153 |
Contract liabilities | 169 | 121 |
Net cash used in operating activities | (27,629) | (29,810) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (493) | (163) |
Net cash used in investing activities | (493) | (163) |
Cash flows from financing activities: | ||
Net proceeds from sale of common stock and warrants | 34,505 | 25,936 |
Proceeds from exercise of options, warrants and employee stock purchase plan options | 484 | 665 |
Net cash provided by financing activities | 34,989 | 26,601 |
Effect of exchange rate changes on cash and cash equivalents | (11) | 4 |
Cash and cash equivalents: | ||
Net Increase (decrease) | 6,856 | (3,368) |
Balance at beginning of year | 4,471 | 7,839 |
Balance at end of year | $ 11,327 | $ 4,471 |
Organization and Business Opera
Organization and Business Operations | 12 Months Ended |
Dec. 31, 2019 | |
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 individuals. 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. We are currently developing the Orion ® Our commercially approved product, the Argus ® Going Concern 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 2019 and 2018, we funded our business primarily through: ● Issuance of common stock and warrants in a Rights Offering in February 2019 which provided $34.4 million of net cash proceeds ● Issuance of common stock through our At Market Issuance Sales Agreement during the fourth quarter of 2019 which provided $0.1 million of net cash proceeds ● Issuance of common stock through our At Market Issuance Sales Agreement during the first quarter of 2018, which provided $4.0 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 $3.4 million and $6.9 million, for the years ended December 31, 2019 and 2018, 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 409,387, 308,465, 403,225 and 844,594 shares respectively of common stock priced at $7.33, $12.96, $12.40 and $11.84 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 5,976,000 units, each priced at $5.792 for net proceeds of approximately $34.4 million. Each unit consisted of one share and one immediately exercisable warrant having a strike price of $11.76 per share. Entities controlled by Gregg Williams, our Chairman of the Board of Directors, acquired approximately 5,180,000 units in the offering for an aggregate investment of approximately $30 million. During December 2019, we sold approximately 17,000 shares of common stock which provided net proceeds of $0.1 million under the Sales Agreement. The Company’s financial statements have been presented on the basis that its business is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. 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 product. 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 have been subject to delisting if we did not regain compliance within the compliance period (or the compliance period as may be extended). On January 6, 2020 we initiated a reverse 1-for-8 (1:8) reverse stock split, which reduced our outstanding shares and increased our per share price which regained compliance with Nasdaq rules.(See Note 14) Based on our current plans, we do not have sufficient funds to continue operating our business at current levels for at least 12 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 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. Reverse Stock Split On December 31, 2019, the Company effected a reverse stock split of the outstanding shares of its no-par value common stock and outstanding warrants to purchase its common stock by a ratio of 1-for-8 (1:8). The common stock and warrants began trading on the Nasdaq Capital Market on a split-adjusted basis on January 6, 2020. The accompanying consolidated financial statements and notes thereto give retrospective effect to the reverse stock split for all periods presented. All issued and outstanding common stock, options and warrants exercisable for common stock, restricted stock units, and per share amounts contained in our consolidated financial statements have been retrospectively adjusted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 and stock-based compensation, 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 invest 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 $0.1 million and $0.2 million at December 31, 2019 and 2018, 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 for property and equipment in 2019 and 2018. Depreciation and amortization of property and equipment amounted to $0.4 million and $0.4 million for the years ended December 31, 2019 and 2018, respectively. Research and Development Research and development costs are charged to operations in the period incurred and amounted to $13.1 million, and $10.0 million net of grant revenue, for the years ended December 31, 2019 and 2018, respectively. Patent Costs Revenue Recognition We generate our revenue from the sale of our Argus II Retinal Prosthesis System, which includes the implant and wearable 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, 2019 and 2018 grants offset against operating expenses were $0.9 million and $0.2 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 credit worthy, 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 cash at a bank in Switzerland. Accounts at said 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, 2019 and 2018 (in thousands): 2019 2018 Direct Channel $ 2,861 $ 5,694 Indirect Channel 518 1,202 Total $ 3,379 $ 6,896 During the year ended December 31, 2019, five customers represented 61% of revenue. During the year ended December 31, 2018 two customers represented 20% As of December 31, 2019 and 2018, the following customers comprised more than 10% accounts receivable: 2019 2018 Customer 1 35 % — % Customer 2 33 % — % Customer 3 32 % — % Customer 4 — % 55 % Customer 5 — % 22 % Customer 6 — % 21 % Geographic Concentration During the years ended December 31, 2019 and 2018, regional revenue, based on customer locations which comprised 10% or more of revenues, consisted of the following: 2019 2018 United States 65 % 56 % Italy 19 % 10 % China 10 % 8 % France — % 10 % Sources of Supply Several of the components, materials and services used in our current Argus II product are available from only single suppliers, 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 production of Orion and 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, 2019 and 2018 include assets amounting to approximately $1.3 million and $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 include 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 U.S. 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 since our trading history began in November 2014, supplemented with average historical volatilities of comparable companies in our 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, 2019 and 2018 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, 2019 and 2018. 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 U.S. dollars in accordance with U.S. 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, 2019, we had federal and state of California income tax net operating loss carryforwards, which may be applied to future taxable income, of approximately $97.6 million and $43.3 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 2037 for federal net operating losses generated before 2018. Federal net operating losses generated for year 2018 and forward do not expire. State net operating losses expire from 2033 through 2039. 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. 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, 2019 and 2018, 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, common stock warrants and stock options) as if they had been converted at the beginning of the periods presented, or the 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, 2019, and 2018, 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). 2019 2018 Underwriter’s warrants — 100 Warrants issued with rights offerings 7,682 1,706 Common stock options 984 890 Restricted stock units 61 4 Employee stock purchase plan 53 51 Total 8,780 2,751 Discontinued operations Based upon our decision on May 10, 2019 to accelerate our transition to the Orion platform, we evaluated our accounting policies related to the disposition in accordance with ASC 205-20 Discontinued Operations Property, Plant, and Equipment including run-off operations. 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. Recently Adopted Accounting Standards ASU No. 2018-07 , Improvements to Nonemployee Share-Based Payment Accounting was issued with t he effective date for public companies fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the effective date is fiscal years beginning after December 15, 2019. Previously, share-based payments to nonemployees were accounted for under Subtopic 505-50, which significantly differs from the guidance for share-based payments to employees under Topic 718. This ASU supersedes Subtopic 505-50 by expanding the scope of Topic 718 to include nonemployee awards and generally aligning the accounting for nonemployee awards with the accounting for employee awards. We adopted this ASU on January 1, 2019 with no material impact on our results of operations, financial position and cash flows. We adopted ASU No. 2016-02— Leases (Topic 842) Adoption of the new standard resulted in the recording of right-of-use assets and operating lease liabilities of approximately $2.6 million and $2.8 million respectively, as of January 1, 2019. The difference of $0.2 million between the right-of-use assets and operating lease liabilities, net of the deferred tax impact, was recorded as an adjustment to accumulated deficit at January 1, 2019. The standard did not materially impact our consolidated net loss and had no impact on cash flows. |
Money Market Funds
Money Market Funds | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Money Market Funds | 3. Money Market Funds Money market funds included in cash equivalents at December 31, 2019 totaled $11.3 million. Money market funds included in cash equivalents at December 31, 2018 totaled $4.2 million and included The following table presents money market funds at their level within the fair value hierarchy at December 31, 2019 and 2018 (in thousands). Total Level 1 Level 2 Level 3 December 31, 2019: Money market funds $ 11,307 $ 11,307 $ — $ — December 31, 2018: Money market funds $ 4,156 $ 4,156 $ — $ — |
Selected Balance Sheet Detail
Selected Balance Sheet Detail | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (in thousands): 2019 2018 Raw materials $ 803 $ 791 Work in process 1,716 3,055 Finished goods 2,069 2,089 4,588 5,935 Allowance for excess and obsolescence (3,559 ) (2,685 ) Inventories, net $ 1,029 $ 3,250 We recorded $2.6 million as an impairment charge during the year ended December 31, 2019, related to our plans to suspend Argus II production. See note 2 for further details. Property and equipment, net of accumulated depreciation and amortization Property and equipment consisted of the following at December 31, 2019 and 2018 (in thousands): 2019 2018 Laboratory equipment $ 2,724 $ 2,482 Computer hardware and software 1,672 1,456 Leasehold improvements 304 298 Furniture, fixtures and equipment 78 46 4,778 4,282 Accumulated depreciation and amortization (3,656 ) (3,257 ) Property and equipment, net $ 1,122 $ 1,025 Contract Liabilities Contract liabilities consisted of the following at December 31, 2019 and 2018 (in thousands 2019 2018 Beginning Balance $ 167 $ 48 Consideration received in advance of revenue recognition 387 551 Revenue recognized (219 ) (432 ) Ending Balance $ 335 $ 167 Allowance for Doubtful Accounts Allowance for doubtful accounts consisted of the following at December 31, 2019 and 2018 (in thousands): 2019 2018 Beginning Balance $ 181 $ 74 Additions 1 107 Write-offs (65 ) — Ending Balance $ 117 $ 181 |
Grants
Grants | 12 Months Ended |
Dec. 31, 2019 | |
Grants [Abstract] | |
Grants | 5. Grants 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 the FDA. As of December 31, 2018 we recorded $0.5 million of deferred grant costs associated with this grant which were offset with the related grant funds when received in 2019. During the year ended December 31, 2019, we received a total of $0.9 million of grant funds primarily from this grant. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2019 | |
Warrants And Rights Note Disclosure [Abstract] | |
Warrants | 6. Warrants Warrants Issued with Convertible Debt Approximately 84,600 warrants associated with the Convertible Notes originally 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 100,625 shares of our common stock at an exercise price of $90.00 per share, which was 25 percent above the offering price to the investors. The warrant was 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. The remaining underwriter’s warrants to purchase 100,250 of our common stock expired on November 18, 2019 Warrants Issued in Rights Offerings On February 22, 2019, we completed a registered rights offering to existing stockholders in which we sold approximately 5,976,000 units at $5.792 per unit, which was the adjusted 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 $11.76. The warrants had a five-year life and trade on Nasdaq under the symbol EYESW. On March 6, 2017, we completed a registered rights offering to existing stockholders in which we sold approximately 1,706,000 units at $11.76 per unit, which was the adjusted 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 $11.76. The warrants have a five-year life and have been approved for trading on Nasdaq under the symbol EYESW. As of December 31, 2019, 632 of the warrants associated with the rights offering had been exercised. We extended the term of 1.7 million warrants issued in our March 2017 rights offering by approximately two years effective as of February 15, 2019 as part of our February 2019 rights offering. We determined the fair value of the March 2017 Warrants immediately before and after the modification. The fair value of the March 2017 Warrants after the modification was increased by approximately $1.6 million, resulting in an accounting adjustment to additional paid-in capital and accumulated deficit in the consolidated statements of shareholders’ equity. The assumptions used in the determination of fair value of the warrants before and after the extension included a risk free interest rate of 2.50% and 2.49%, expected volatility of 81% and 82%, and expected lives of 3.08 years and 5.08 years, respectively and 0% dividend yields for both. A summary of warrant activity for the years ended December 31, 2019 and 2018 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, 2017 1,891 $ 17.20 Granted — — Exercised (1 ) 11.76 Forfeited or expired (84 ) 40.00 Warrants outstanding at December 31, 2018 1,806 $ 16.08 Granted 5,976 11.76 Exercised — — Forfeited or expired (100 ) 90.00 Warrants outstanding at December 31, 2019 7,682 $ 11.76 4.21 Warrants exercisable at December 31, 2019 7,682 $ 11.76 4.21 Warrants exercisable at December 31, 2019 had no intrinsic value. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 7. Employee Benefit Plans We have a 401(k) Savings Retirement Plan (the “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 each of the years ended December 31, 2019 and 2018, employer contributions to the Plan totaled $0.2 million. We are required to contribute to a government-sponsored pension plan for the employees of our Switzerland-based subsidiary. For each of the years ended December 31, 2019 and 2018, the employer’s portion of the amounts contributed to the subsidiary’s pension plan on behalf of those employees was $0.1 million. |
Equity Securities
Equity Securities | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Equity Securities | 8. Equity Securities On June 4, 2019, our shareholders approved an amendment to our articles of incorporation increasing our authorized no par value common shares from 200,000,000 to 300,000,000. 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 were primarily paid for their services in common stock in 2018. For 2018, we issued a total of approximately 17,000 shares of common stock with a value of $0.3 million for annual service through May 31, 2018. Since June 1, 2018 our board members receive compensation in cash and stock options. 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 the twelve months ended December 31, 2019 our members were compensated $0.2 million and also received stock options valued at $0.2 million. Rights Offerings In a rights offering completed on February 22, 2019, we sold approximately 5,976,000 units, each priced at $5.792 for net proceeds of approximately $34.4 million. Each unit consisted of one share and one immediately exercisable warrant having an exercise price of $11.76 per share. Entities controlled by Gregg Williams, our Chairman of the Board of Directors, acquired approximately 5,180,000 units in the offering for an aggregate investment of approximately $30 million. At-the-Market Sales Agreement During December 2019, we issued approximately 17,000 shares of common stock for net proceeds of approximately $0.1 million as part of our At the Market Issuance Sales Agreement (“Sales Agreement”). 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 409,387, 308,465, 403,225 and 844,594 shares, respectively, of common stock priced at $7.33, $12.96, $12.40 and $11.84 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. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation Stock Options Under the 2003 Plan, as restated in June 2011, we were authorized to issue options covering up to 437,500 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 937,500 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 2011 Plan was further amended in 2015, 2016, 2017 and 2018 bringing the number of shares issuable under the Plan to 1,500,000. No option shall be granted under the 2011 Plan after May 31, 2021. We recognized stock-based compensation cost of $2.9 million and $3.6 million during 2019 and 2018, 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: 2019 2018 Risk-free interest rate 1.43% – 2.63% 2.32% – 3.05% Expected dividend yield 0% 0% Expected volatility 72.0% 67.0% Expected term 5.50-6.08 years 5.50-6.11 years Weighted-average grant date calculated fair value $ 3.97 $ 9.60 . A summary of stock option activity for the years ended December 31, 2019 and 2018 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, 2017 709 $ 38.96 Granted 397 15.51 Exercised (9 ) 15.63 Forfeited or expired (207 ) 30.64 Options outstanding at December 31, 2018 890 $ 30.68 Granted 336 6.13 Exercised — — Forfeited or expired (242 ) 32.75 Options outstanding at December 31, 2019 984 $ 21.78 7.70 Options exercisable at December 31, 2019 498 $ 32.42 6.88 The exercise prices of common stock options outstanding and exercisable are as follows at December 31, 2019 (in thousands): Exercise Price Options Outstanding (Shares) Options Exercisable (Shares) $ 5.54 to 6.63 286 48 $ 6.64 to 13.83 111 40 $ 13.84 to 16.55 408 238 $ 16.56 to 72.00 101 94 $ 72.08 to 111.20 78 78 984 498 Stock options exercisable at December 31, 2019 had minimal intrinsic value . During the year ended December 31, 2019, we granted stock options to purchase 336,318 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 $5.48 to $8.00 per share, which was the fair value of our common stock on the respective grant dates. The options generally 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 $1.3 million ($3.52 to $5.20 per share). In October 2017 and in January 2018 we granted stock options to purchase 18,750 and 3,750 shares of common stock, respectively, to an outside contractor in connection with his services. The options were exercisable for a period of ten years from the date of grant at a price of $9.68 and $16.48 respectively, per share, which was the fair value of our common stock on each grant date. The options were scheduled to vest over a four year period. The unvested portion of these stock options was re-measured by us at each reporting period. The contractor’s services ended during 2019 and these options expired. For the years ended December 31, 2019 and 2018, $12,000 and $43,000 was expensed for these grants, respectively. Employee Stock Purchase Plan We adopted an employee stock purchase plan in June 2015 for all eligible employees. Under the plan, shares of our common stock may be purchased at six-month intervals at 85% of the lower of the closing price 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 12,500 shares of common stock in any one offering period. At December 31, 2019, 241,719 shares were issued under the stock purchase plan. Although we originally registered shares for sale to employees under our 2015 Employee Stock Purchase Plan, as amended, we discovered that we had inadvertently exceeded the number of shares registered. We are voluntarily offering to rescind the sale of up to 45,468 shares of our common stock to persons who purchased those shares under the ESPP and to reimburse any losses upon the sale of up to an additional 2,470 shares of our common stock from persons who purchased shares from our ESPP but have resold such shares, in each case, because these shares may not have been exempt from registration under the Securities Act of 1933. It may also be possible that by not disclosing that the shares were unregistered, we may face contingent liability for noncompliance with applicable federal and state securities laws. Therefore, we are conducting a rescission offer to those employee purchasers to attempt to extinguish any federal or state registration requirements or related contingent liability. This offer is being made to those persons who purchased common stock from our ESPP on November 30, 2018, May 31, 2019 and November 30, 2019. The eligible 45,468 shares for rescission represent the total number of Eligible Rescission Shares that had not been resold by ESPP participants as of March 12, 2020. We expect if our offers to rescind for those who are still holding shares and to reimburse losses for those who sold their shares will not exceed $281,000 if exercised in full. We may continue to have potential liability even after this rescission offer is made due to our issuances of securities in possible violation of the federal and state securities laws. The Securities Act does not expressly provide that a rescission offer will terminate a purchaser's right to rescind a sale of stock that was not registered or exempt from the registration requirements of the Securities Act. Should any offerees reject the rescission offer, we may continue to be potentially liable under the Securities Act for the purchase price or for certain losses if the shares have been sold. Restricted Stock Units During 2019, we awarded RSUs of 65,813 to certain employees. The fair value of these RSUs totaled $0.4 million. The RSUs generally vest over a four year period, and were awarded at the fair value of our common stock on the respective award dates. The following table presented below summarizes Restricted Stock Unit (RSU) activity for the years ended December 31, 2019 and 2018 (in thousands, except per share data): Number of Awards Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2017 10 $ 99.44 Awarded — — Vested 6 99.44 Forfeited/canceled — — Outstanding as of December 31, 2018 4 $ 99.44 Awarded 66 6.00 Vested 9 52.08 Forfeited/canceled — — Outstanding as of December 31, 2019 61 $ 5.92 As of December 31, 2018, there was $0.3 million of total unrecognized compensation cost related to the outstanding RSUs that will be recognized over a weighted average period of 3.14 years. The total stock-based compensation recognized for stock-based awards granted in the consolidated statements of operations for the years ended December 31, 2019 and 2018 is as follows (in thousands): 2019 2018 Cost of sales $ 172 $ 279 Research and development 552 382 Clinical and regulatory 107 152 Selling and marketing 481 505 General and administrative 1,613 2,271 Total $ 2,925 $ 3,589 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 are summarized below (in thousands): 2019 2018 Stock-based compensation $ 4,637 $ 4,297 Research credits 8,208 7,003 Depreciation (45 ) (48 ) Net operating loss carryforwards 26,339 20,315 Inventory reserve 827 651 Other 669 643 Total deferred tax assets 40,635 32,861 Valuation allowance (40,635 ) (32,861 ) 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, 2019 and 2018, 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, 2019 and 2018 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 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 determine 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, 2019, 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 $97.6 million and $43.3 million, respectively. The federal net operating loss carryforwards for years before 2018 will expire at various dates from 2035 through 2037. The federal net operating loss carryforwards for 2018 and forward do not expire. The state net operating loss carryforwards began to expire at various dates from 2033 through 2039. We also have a federal and state research and development tax credit carryforwards totaling approximately $4,514,000 and $3,694,000, respectively. The federal research and development tax credit carryforwards will expire at various dates from 2023 through 2039. 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 2016 and later and by state authorities for tax years ended 2015 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, 2019, and 2018, 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. |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 is presented below (in thousands): 2019 2018 Balance, beginning of year $ 1,572 $ 1,456 Additions 359 193 Settlements (356 ) (264 ) Adjustments and other — 187 Total $ 1,575 $ 1,572 |
Right-of-use Assets and Operati
Right-of-use Assets and Operating Lease Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Right-of-use Assets and Operating Lease Liabilities | 12. Right-of-use Assets and Operating Lease Liabilities We lease certain office space and equipment for our use. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease costs are recognized in the income statement over the lease term on a straight-line basis. Depreciation is computed using the straight-line method over the estimated useful life of the respective assets. Our operating lease for office space includes one option to renew, with a five-year renewal term that can extend the lease term to 2027. The exercise of this lease renewal option is at our sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. As most of our leases do not provide an implicit rate, we used our estimated incremental borrowing rate of 10% based on the information available at commencement date in determining the present value of lease payments. Lease assets and liabilities consisted of the following (in thousands): Assets Classification December Non-current assets Right-of-use assets $ 2,342 Liabilities Current Current operating lease liabilities $ 237 Long term Long-term operating lease liabilities $ 2,365 The components of lease expense for the year ended December 31, 2019 were as follows: Year ended December 31, 2019 Lease expense: Operating lease expense $ 493 Short-term lease expense — Total lease expense $ 493 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 476 For operating lease: Weighted average remaining lease term (in years) 7.1 Weighted average discount rate 10 % Minimum future payments under the Company’s leases at December 31, 2019 and their application to the corresponding lease liabilities are as follows: Discounted lease Payments due 2020 $ 237 $ 491 2021 278 505 2022 322 521 2023 352 516 2024 393 521 Thereafter 1,020 1,183 Total $ 2,602 $ 3,737 Second Sight Switzerland rents office space in Switzerland on a month-to-month basis for CHF 1,573 (approximately $1,623, at current exchange rates) per month. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies 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 through 2033. 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 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 12 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 of Argus II, which was obtained in February 2013, we were 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 was extended through the year 2019. In addition, we are conducting three post-market studies to comply with U.S. FDA, French, and European post-market surveillance regulations and requirements and a six subject initial feasibility clinical study of Orion. 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, 2019 and 2018 were California Board Representation California’s gender diversity law, which went into effect on January 1, 2019, requires publicly held corporations with principal executive offices in California to have at least one female director by December 31, 2019 and a minimum that increases to two or three female directors by December 31, 2021 if the corporation has five directors or six or more directors, respectively. We have no female board members currently. We may be assessed penalties and fines under California’s board gender diversity statute and have accrued $100,000 as of December 31, 2019. Litigation, Claims and Assessments Eleven oppositions filed by Pixium Vision are pending in the European Patent Office, each challenging the validity of a European patent owned by us. We have filed one opposition that is currently pending in the European Patent Office challenging the validity of a patent owned by Pixium Vision. The outcome of the challenges are 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 us 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, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Summary (unaudited) | 13. Quarterly Financial Summary (unaudited) Three Months Ended (in thousands, except per share data) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Product sales $ 497 $ 472 $ 1,282 $ 1,128 Gross profit $ 373 $ 108 $ 349 $ 397 Operating loss $ (8,126 ) $ (7,619 ) $ (8,441 ) $ (9,768 ) Net loss $ (7,868 ) $ (7,584 ) $ (8,440 ) $ (9,700 ) Net loss per share – basic and diluted $ (0.50 ) $ (0.48 ) $ (0.56 ) $ (0.80 ) Three Months Ended 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 $ (0.96 ) $ (0.96 ) $ (0.96 ) $ (1.36 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Notes To Financial Statements [Abstract] | |
Subsequent Events | 14. Subsequent Events Stock Option Grants In February 2020, we granted long term incentive stock options to our current employees to purchase 205,701 shares of common stock, including 118,781 options that were granted to senior management. The options are exercisable for a period of ten years from the date of grant with an exercise price of $5.98 per share. The options vest over a four-year term, on an equal monthly basis. Nasdaq Compliance Letter By letter dated January 21, 2020, Nasdaq confirmed to Second Sight Medical Products Inc. (the “Company”) that for the last 10 consecutive business days, from January 6 to January 17, 2020, the closing bid price of the Company’s common stock has been at $1.00 per share or greater. Nasdaq had previously informed the Company in January 2019 that the common stock of the Company failed to maintain a bid price of $1.00 over the previous 30 consecutive business days as required by the Listing Rules of the Nasdaq Stock Market. Accordingly, the Company has regained compliance with Listing Rule 5550(a)(2). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 and stock-based compensation, 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 invest 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 $0.1 million and $0.2 million at December 31, 2019 and 2018, 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 for property and equipment in 2019 and 2018. Depreciation and amortization of property and equipment amounted to $0.4 million and $0.4 million for the years ended December 31, 2019 and 2018, respectively. |
Research and Development | Research and Development Research and development costs are charged to operations in the period incurred and amounted to $13.1 million, and $10.0 million net of grant revenue, for the years ended December 31, 2019 and 2018, respectively. |
Patent Costs | Patent Costs |
Revenue Recognition | Revenue Recognition We generate our revenue from the sale of our Argus II Retinal Prosthesis System, which includes the implant and wearable 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, 2019 and 2018 grants offset against operating expenses were $0.9 million and $0.2 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 credit worthy, 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 cash at a bank in Switzerland. Accounts at said 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, 2019 and 2018 (in thousands): 2019 2018 Direct Channel $ 2,861 $ 5,694 Indirect Channel 518 1,202 Total $ 3,379 $ 6,896 During the year ended December 31, 2019, five customers represented 61% of revenue. During the year ended December 31, 2018 two customers represented 20% As of December 31, 2019 and 2018, the following customers comprised more than 10% accounts receivable: 2019 2018 Customer 1 35 % — % Customer 2 33 % — % Customer 3 32 % — % Customer 4 — % 55 % Customer 5 — % 22 % Customer 6 — % 21 % Geographic Concentration During the years ended December 31, 2019 and 2018, regional revenue, based on customer locations which comprised 10% or more of revenues, consisted of the following: 2019 2018 United States 65 % 56 % Italy 19 % 10 % China 10 % 8 % France — % 10 % Sources of Supply Several of the components, materials and services used in our current Argus II product are available from only single suppliers, 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 production of Orion and 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, 2019 and 2018 include assets amounting to approximately $1.3 million and $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 include 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 U.S. 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 since our trading history began in November 2014, supplemented with average historical volatilities of comparable companies in our 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, 2019 and 2018 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, 2019 and 2018. |
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 U.S. dollars in accordance with U.S. 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, 2019, we had federal and state of California income tax net operating loss carryforwards, which may be applied to future taxable income, of approximately $97.6 million and $43.3 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 2037 for federal net operating losses generated before 2018. Federal net operating losses generated for year 2018 and forward do not expire. State net operating losses expire from 2033 through 2039. 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. |
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, 2019 and 2018, 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, common stock warrants and stock options) as if they had been converted at the beginning of the periods presented, or the 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, 2019, and 2018, 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). 2019 2018 Underwriter’s warrants — 100 Warrants issued with rights offerings 7,682 1,706 Common stock options 984 890 Restricted stock units 61 4 Employee stock purchase plan 53 51 Total 8,780 2,751 |
Discontinued Operations | Discontinued operations Based upon our decision on May 10, 2019 to accelerate our transition to the Orion platform, we evaluated our accounting policies related to the disposition in accordance with ASC 205-20 Discontinued Operations Property, Plant, and Equipment including run-off operations. |
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. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards ASU No. 2018-07 , Improvements to Nonemployee Share-Based Payment Accounting was issued with t he effective date for public companies fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the effective date is fiscal years beginning after December 15, 2019. Previously, share-based payments to nonemployees were accounted for under Subtopic 505-50, which significantly differs from the guidance for share-based payments to employees under Topic 718. This ASU supersedes Subtopic 505-50 by expanding the scope of Topic 718 to include nonemployee awards and generally aligning the accounting for nonemployee awards with the accounting for employee awards. We adopted this ASU on January 1, 2019 with no material impact on our results of operations, financial position and cash flows. We adopted ASU No. 2016-02— Leases (Topic 842) Adoption of the new standard resulted in the recording of right-of-use assets and operating lease liabilities of approximately $2.6 million and $2.8 million respectively, as of January 1, 2019. The difference of $0.2 million between the right-of-use assets and operating lease liabilities, net of the deferred tax impact, was recorded as an adjustment to accumulated deficit at January 1, 2019. The standard did not materially impact our consolidated net loss and had no impact on cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (in thousands): 2019 2018 Direct Channel $ 2,861 $ 5,694 Indirect Channel 518 1,202 Total $ 3,379 $ 6,896 |
Schedule of Concentration of Risk | As of December 31, 2019 and 2018, the following customers comprised more than 10% accounts receivable: 2019 2018 Customer 1 35 % — % Customer 2 33 % — % Customer 3 32 % — % Customer 4 — % 55 % Customer 5 — % 22 % Customer 6 — % 21 % |
Schedule of Geographic Concentration of Risk in Revenue | During the years ended December 31, 2019 and 2018, regional revenue, based on customer locations which comprised 10% or more of revenues, consisted of the following: 2019 2018 United States 65 % 56 % Italy 19 % 10 % China 10 % 8 % France — % 10 % |
Schedule of Net Loss Per Share | At December 31, 2019, and 2018, 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). 2019 2018 Underwriter’s warrants — 100 Warrants issued with rights offerings 7,682 1,706 Common stock options 984 890 Restricted stock units 61 4 Employee stock purchase plan 53 51 Total 8,780 2,751 |
Money Market Funds (Tables)
Money Market Funds (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (in thousands). Total Level 1 Level 2 Level 3 December 31, 2019: Money market funds $ 11,307 $ 11,307 $ — $ — December 31, 2018: Money market funds $ 4,156 $ 4,156 $ — $ — |
Selected Balance Sheet Detail (
Selected Balance Sheet Detail (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Inventories | Inventories consisted of the following at December 31, 2019 and 2018 (in thousands): 2019 2018 Raw materials $ 803 $ 791 Work in process 1,716 3,055 Finished goods 2,069 2,089 4,588 5,935 Allowance for excess and obsolescence (3,559 ) (2,685 ) Inventories, net $ 1,029 $ 3,250 |
Schedule of Property and Equipment | Property and equipment consisted of the following at December 31, 2019 and 2018 (in thousands): 2019 2018 Laboratory equipment $ 2,724 $ 2,482 Computer hardware and software 1,672 1,456 Leasehold improvements 304 298 Furniture, fixtures and equipment 78 46 4,778 4,282 Accumulated depreciation and amortization (3,656 ) (3,257 ) Property and equipment, net $ 1,122 $ 1,025 |
Schedule of Contract Liabilities | Contract liabilities consisted of the following at December 31, 2019 and 2018 (in thousands 2019 2018 Beginning Balance $ 167 $ 48 Consideration received in advance of revenue recognition 387 551 Revenue recognized (219 ) (432 ) Ending Balance $ 335 $ 167 |
Schedule of Allowance for Doubtful Accounts | Allowance for doubtful accounts consisted of the following at December 31, 2019 and 2018 (in thousands): 2019 2018 Beginning Balance $ 181 $ 74 Additions 1 107 Write-offs (65 ) — Ending Balance $ 117 $ 181 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Warrants And Rights Note Disclosure [Abstract] | |
Summary of Warrant Activity | A summary of warrant activity for the years ended December 31, 2019 and 2018 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, 2017 1,891 $ 17.20 Granted — — Exercised (1 ) 11.76 Forfeited or expired (84 ) 40.00 Warrants outstanding at December 31, 2018 1,806 $ 16.08 Granted 5,976 11.76 Exercised — — Forfeited or expired (100 ) 90.00 Warrants outstanding at December 31, 2019 7,682 $ 11.76 4.21 Warrants exercisable at December 31, 2019 7,682 $ 11.76 4.21 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Risk-free interest rate 1.43% – 2.63% 2.32% – 3.05% Expected dividend yield 0% 0% Expected volatility 72.0% 67.0% Expected term 5.50-6.08 years 5.50-6.11 years Weighted-average grant date calculated fair value $ 3.97 $ 9.60 |
Summary of Stock Option Activity | A summary of stock option activity for the years ended December 31, 2019 and 2018 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, 2017 709 $ 38.96 Granted 397 15.51 Exercised (9 ) 15.63 Forfeited or expired (207 ) 30.64 Options outstanding at December 31, 2018 890 $ 30.68 Granted 336 6.13 Exercised — — Forfeited or expired (242 ) 32.75 Options outstanding at December 31, 2019 984 $ 21.78 7.70 Options exercisable at December 31, 2019 498 $ 32.42 6.88 |
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, 2019 (in thousands): Exercise Price Options Outstanding (Shares) Options Exercisable (Shares) $ 5.54 to 6.63 286 48 $ 6.64 to 13.83 111 40 $ 13.84 to 16.55 408 238 $ 16.56 to 72.00 101 94 $ 72.08 to 111.20 78 78 984 498 |
Summary of Restricted Stock Unit (RSU) Activity | The following table presented below summarizes Restricted Stock Unit (RSU) activity for the years ended December 31, 2019 and 2018 (in thousands, except per share data): Number of Awards Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2017 10 $ 99.44 Awarded — — Vested 6 99.44 Forfeited/canceled — — Outstanding as of December 31, 2018 4 $ 99.44 Awarded 66 6.00 Vested 9 52.08 Forfeited/canceled — — Outstanding as of December 31, 2019 61 $ 5.92 |
Stock-based Compensation Expense | The total stock-based compensation recognized for stock-based awards granted in the consolidated statements of operations for the years ended December 31, 2019 and 2018 is as follows (in thousands): 2019 2018 Cost of sales $ 172 $ 279 Research and development 552 382 Clinical and regulatory 107 152 Selling and marketing 481 505 General and administrative 1,613 2,271 Total $ 2,925 $ 3,589 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets | Significant components of our deferred tax assets as of December 31, 2019 and 2018 are summarized below (in thousands): 2019 2018 Stock-based compensation $ 4,637 $ 4,297 Research credits 8,208 7,003 Depreciation (45 ) (48 ) Net operating loss carryforwards 26,339 20,315 Inventory reserve 827 651 Other 669 643 Total deferred tax assets 40,635 32,861 Valuation allowance (40,635 ) (32,861 ) Net deferred tax assets $ — $ — |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 is presented below (in thousands): 2019 2018 Balance, beginning of year $ 1,572 $ 1,456 Additions 359 193 Settlements (356 ) (264 ) Adjustments and other — 187 Total $ 1,575 $ 1,572 |
Right of use Assets and Operati
Right of use Assets and Operating Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | Lease assets and liabilities consisted of the following (in thousands): Assets Classification December Non-current assets Right-of-use assets $ 2,342 Liabilities Current Current operating lease liabilities $ 237 Long term Long-term operating lease liabilities $ 2,365 |
Schedule of Lease Costs | The components of lease expense for the year ended December 31, 2019 were as follows: Year ended December 31, 2019 Lease expense: Operating lease expense $ 493 Short-term lease expense — Total lease expense $ 493 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 476 For operating lease: Weighted average remaining lease term (in years) 7.1 Weighted average discount rate 10 % |
Schedule of Minimum Future Payments | Minimum future payments under the Company’s leases at December 31, 2019 and their application to the corresponding lease liabilities are as follows: Discounted lease Payments due 2020 $ 237 $ 491 2021 278 505 2022 322 521 2023 352 516 2024 393 521 Thereafter 1,020 1,183 Total $ 2,602 $ 3,737 |
Quarterly Financial Summary (_2
Quarterly Financial Summary (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Summary | Three Months Ended (in thousands, except per share data) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Product sales $ 497 $ 472 $ 1,282 $ 1,128 Gross profit $ 373 $ 108 $ 349 $ 397 Operating loss $ (8,126 ) $ (7,619 ) $ (8,441 ) $ (9,768 ) Net loss $ (7,868 ) $ (7,584 ) $ (8,440 ) $ (9,700 ) Net loss per share – basic and diluted $ (0.50 ) $ (0.48 ) $ (0.56 ) $ (0.80 ) Three Months Ended 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 $ (0.96 ) $ (0.96 ) $ (0.96 ) $ (1.36 ) |
Organization and Business Ope_2
Organization and Business Operations - Additional Information (Details) $ / shares in Units, $ in Thousands | Jan. 06, 2020 | Feb. 22, 2019USD ($)$ / sharesshares | Jan. 25, 2019$ / shares | Dec. 12, 2018USD ($)$ / sharesshares | Oct. 18, 2018USD ($)$ / sharesshares | Aug. 14, 2018USD ($)$ / sharesshares | May 03, 2018USD ($)$ / sharesshares | Jan. 21, 2020$ / shares | Dec. 31, 2019USD ($)shares | Feb. 28, 2019USD ($) | Jan. 31, 2019$ / shares | Feb. 28, 2018USD ($)shares | Mar. 06, 2017$ / sharesshares | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2007 |
Organization And Business Operations [Line Items] | |||||||||||||||||||||||||
Net sales | $ | $ 497 | $ 472 | $ 1,282 | $ 1,128 | $ 1,767 | $ 2,246 | $ 1,907 | $ 976 | $ 3,379 | $ 6,896 | |||||||||||||||
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | |||||||||||||||||||||||
Reverse stock split | 1-for-8 | ||||||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||||||||||
Stock market granted consecutive trading days preceding date of letter | 10 days | ||||||||||||||||||||||||
Closing bid price per NASDAQ listing notification letter | $ / shares | $ 1 | ||||||||||||||||||||||||
Reverse stock split ratio | 8 | ||||||||||||||||||||||||
Nasdaq Capital Market [Member] | |||||||||||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||||||||||
Stock market granted consecutive trading days preceding date of letter | 30 days | 30 days | |||||||||||||||||||||||
Closing bid price per NASDAQ listing notification letter | $ / shares | $ 1 | $ 1 | |||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 17 | 2,243 | |||||||||||||||||||||||
Right Offering [Member] | |||||||||||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||||||||||
Proceeds from issuance or sale of equity, total | $ | $ 34,400 | $ 34,400 | |||||||||||||||||||||||
Share Price | $ / shares | $ 11.76 | $ 11.76 | |||||||||||||||||||||||
Number of shares issued upon right offering | 5,976,000 | 1,706,000 | |||||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 5.792 | $ 11.76 | |||||||||||||||||||||||
Exercise price of exercisable warrant | $ / shares | $ 11.76 | ||||||||||||||||||||||||
Right Offering [Member] | Common Stock [Member] | |||||||||||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||||||||||
Number of securities called by each warrant or right | 1 | ||||||||||||||||||||||||
Right Offering [Member] | Warrant [Member] | |||||||||||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||||||||||
Number of securities called by each warrant or right | 1 | ||||||||||||||||||||||||
At Market Issuance Sales Agreement [Member] | |||||||||||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||||||||||
Proceeds from issuance or sale of equity, total | $ | $ 100 | $ 4,000 | $ 100 | $ 4,000 | |||||||||||||||||||||
Issuance of shares of common stock in connection with ATM, net of expenses (in shares) | 17,000 | 278,000 | |||||||||||||||||||||||
Entities Beneficially Owned by Mr. Gregg Williams [Member] | Right Offering [Member] | |||||||||||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||||||||||
Proceeds from issuance or sale of equity, total | $ | $ 30,000 | ||||||||||||||||||||||||
Number of shares issued upon right offering | 5,180,000 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 409,387 | 308,465 | 403,225 | 844,594 | |||||||||||||||||||||
Share Price | $ / shares | $ 7.33 | $ 12.96 | $ 12.4 | $ 11.84 | |||||||||||||||||||||
Second Sight (Switzerland) Sarl [Member] | |||||||||||||||||||||||||
Organization And Business Operations [Line Items] | |||||||||||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 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) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)ChannelCustomer | Dec. 31, 2018USD ($)Customer | Jan. 01, 2019USD ($) | Dec. 31, 2017USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Allowance for doubtful accounts | $ 181,000 | $ 117,000 | $ 181,000 | $ 74,000 | |
Impairment losses recognized | 0 | 0 | |||
Depreciation and amortization of property and equipment | 400,000 | 400,000 | |||
Research and development costs | 13,143,000 | 10,005,000 | |||
Patent costs | $ 400,000 | 600,000 | |||
Number of main sales channels | Channel | 2 | ||||
Grants offset against operating expenses | $ 900,000 | $ 200,000 | |||
FDIC insured amount | 250,000 | ||||
SPIC insured amount | 500,000 | ||||
SPIC cash limit coverage | $ 250,000 | ||||
Number of customer represented 10% or more of revenue | Customer | 5 | 2 | |||
Assets | 10,682,000 | $ 16,599,000 | $ 10,682,000 | ||
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. | ||||
Manufacture warranty period | 3 years | ||||
Restructuring charges | 600,000 | $ 3,357,000 | 555,000 | ||
Right-of-use assets | 2,342,000 | $ 2,600,000 | |||
Operating Lease, Liability | 2,602,000 | 2,800,000 | |||
Adjustment of difference between right-of-use assets and operating lease liabilities | (144,000) | (144,000) | $ 200,000 | ||
Argus II Product [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Impairment charge | 2,600,000 | ||||
Restructuring charges | 800,000 | ||||
Other assets impairment charge | 0 | ||||
Federal | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Net operating losses carryforward | 97,600,000 | ||||
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 | $ 43,300,000 | ||||
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 | 2037 | ||||
Maximum | State | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Operating loss carryforwards expiration year | 2039 | ||||
SWITZERLAND | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Assets | $ 1,500,000 | $ 1,300,000 | $ 1,500,000 | ||
Sales Revenue, Net | Customer 1 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Customer concentration | 61.00% | 20.00% | |||
Sales Revenue, Net | Customer 2 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Customer concentration | 61.00% | 20.00% | |||
Sales Revenue, Net | Customer 3 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Customer concentration | 61.00% | ||||
Sales Revenue, Net | Customer 4 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Customer concentration | 61.00% | ||||
Sales Revenue, Net | Customer 5 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Customer concentration | 61.00% |
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, 2019 | |
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 [Member] | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 2 years |
Leasehold Improvements [Member] | 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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||||||||||
Revenues | $ 497 | $ 472 | $ 1,282 | $ 1,128 | $ 1,767 | $ 2,246 | $ 1,907 | $ 976 | $ 3,379 | $ 6,896 |
Direct Channel [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Revenues | 2,861 | 5,694 | ||||||||
Indirect Channel [Member] | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Revenues | $ 518 | $ 1,202 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Concentration of Risk (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Customer 1 [Member] | ||
Concentration Risk [Line Items] | ||
Customer concentration | 35.00% | |
Customer 2 [Member] | ||
Concentration Risk [Line Items] | ||
Customer concentration | 33.00% | |
Customer 3 [Member] | ||
Concentration Risk [Line Items] | ||
Customer concentration | 32.00% | |
Customer 4 [Member] | ||
Concentration Risk [Line Items] | ||
Customer concentration | 55.00% | |
Customer 5 [Member] | ||
Concentration Risk [Line Items] | ||
Customer concentration | 22.00% | |
Customer 6 [Member] | ||
Concentration Risk [Line Items] | ||
Customer concentration | 21.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Geographic Concentration of Risk in Revenue (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
United States | ||
Concentration Risk [Line Items] | ||
Geographic concentration | 65.00% | 56.00% |
Italy | ||
Concentration Risk [Line Items] | ||
Geographic concentration | 19.00% | 10.00% |
China | ||
Concentration Risk [Line Items] | ||
Geographic concentration | 10.00% | 8.00% |
France | ||
Concentration Risk [Line Items] | ||
Geographic concentration | 10.00% |
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, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Calculation of earnings per share common stock anti-dilutive securities | 8,780 | 2,751 |
Underwriter’s Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Calculation of earnings per share common stock anti-dilutive securities | 100 | |
Warrants Issued With Rights Offerings | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Calculation of earnings per share common stock anti-dilutive securities | 7,682 | 1,706 |
Common Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Calculation of earnings per share common stock anti-dilutive securities | 984 | 890 |
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 | 61 | 4 |
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 | 53 | 51 |
Money Market Funds - Additional
Money Market Funds - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Line Items] | ||
Deposit account | $ 200 | |
Money Market Funds [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Money market funds included in cash equivalents | $ 11,307 | $ 4,156 |
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, 2019 | Dec. 31, 2018 |
Money market funds | $ 11,307 | $ 4,156 |
Level 1 [Member] | ||
Money market funds | $ 11,307 | $ 4,156 |
Selected Balance Sheet Detail -
Selected Balance Sheet Detail - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Raw materials | $ 803 | $ 791 |
Work in process | 1,716 | 3,055 |
Finished goods | 2,069 | 2,089 |
Inventories, gross | 4,588 | 5,935 |
Allowance for excess and obsolescence | (3,559) | (2,685) |
Inventories, net | $ 1,029 | $ 3,250 |
Selected Balance Sheet Detail_2
Selected Balance Sheet Detail - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,778 | $ 4,282 |
Accumulated depreciation and amortization | (3,656) | (3,257) |
Property and equipment, net | 1,122 | 1,025 |
Laboratory Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,724 | 2,482 |
Computer Hardware and Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,672 | 1,456 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 304 | 298 |
Furniture, Fixtures and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 78 | $ 46 |
Selected Balance Sheet Detail_3
Selected Balance Sheet Detail - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Argus II Product [Member] | |
Product Information [Line Items] | |
Impairment charge | $ 2.6 |
Selected Balance Sheet Detail_4
Selected Balance Sheet Detail - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Beginning Balance | $ 167 | $ 48 |
Consideration received in advance of revenue recognition | 387 | 551 |
Revenue recognized | (219) | (432) |
Ending Balance | $ 335 | $ 167 |
Selected Balance Sheet Detail_5
Selected Balance Sheet Detail - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning Balance | $ 181 | $ 74 |
Additions | 1 | 107 |
Write-offs | (65) | |
Ending Balance | $ 117 | $ 181 |
Grants - Additional Information
Grants - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Grants [Abstract] | ||
Received grant | $ 0.9 | $ 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 |
Warrants - Additional Informati
Warrants - Additional Information (Details) $ / shares in Units, $ in Thousands | Nov. 18, 2019$ / sharesshares | Feb. 22, 2019$ / sharesshares | Feb. 15, 2019shares | Mar. 06, 2017$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2013shares |
Right Offering [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Warrants exercise price (in dollars per share) | $ / shares | $ 11.76 | |||||||
Number of shares issued upon right offering | 5,976,000 | 1,706,000 | ||||||
Share price (in dollars per share) | $ / shares | $ 5.792 | $ 11.76 | ||||||
Additional share price (in dollars per share) | $ / shares | $ 11.76 | $ 11.76 | ||||||
Term of warrants | 5 years | 5 years | ||||||
Warrants to purchase shares of common stock | 632 | |||||||
Underwriter’s Warrants | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Number of warrant outstanding | 100,250 | |||||||
Warrants expiration date | Nov. 18, 2019 | |||||||
Warrants exercise price (in dollars per share) | $ / shares | $ 90 | |||||||
Purchase of common stock by underwriter granted | 100,625 | |||||||
March 2017 Warrants [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Number of warrants issued | 1,700,000 | |||||||
Adjustment to additional paid-in capital and accumulated deficit | $ | $ 1,600 | |||||||
March 2017 Warrants [Member] | Right Offering [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Term of warrants | 2 years | |||||||
March 2017 Warrants Before Extension [Member] | Risk Free Interest Rate | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Alternative investment, measurement input | 2.50 | |||||||
March 2017 Warrants Before Extension [Member] | Expected Volatility [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Alternative investment, measurement input | 81 | |||||||
March 2017 Warrants Before Extension [Member] | Expected Lives [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Alternative investment, measurement input | 3 years 29 days | |||||||
March 2017 Warrants Before Extension [Member] | Dividend Yield [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Alternative investment, measurement input | 0 | |||||||
March 2017 Warrants After Extension [Member] | Risk Free Interest Rate | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Alternative investment, measurement input | 2.49 | |||||||
March 2017 Warrants After Extension [Member] | Expected Volatility [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Alternative investment, measurement input | 82 | |||||||
March 2017 Warrants After Extension [Member] | Expected Lives [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Alternative investment, measurement input | 5 years 29 days | |||||||
March 2017 Warrants After Extension [Member] | Dividend Yield [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Alternative investment, measurement input | 0 | |||||||
Warrant [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Number of warrant outstanding | 7,682,000 | 1,806,000 | 1,891,000 | |||||
Warrants exercise price (in dollars per share) | $ / shares | $ 11.76 | $ 16.08 | $ 17.20 | |||||
Warrants exercisable, intrinsic value | $ | $ 0 | |||||||
Convertible Notes Issued in 2013 [Member] | ||||||||
Class Of Warrant Or Right [Line Items] | ||||||||
Number of warrant outstanding | 84,600 | |||||||
Warrants expiration date | Feb. 28, 2018 |
Warrants - Summary of Warrants
Warrants - Summary of Warrants Activity (Details) - Warrant [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Warrant or Right, Outstanding [Roll Forward] | ||
Outstanding at beginning | 1,806,000 | 1,891,000 |
Granted | 5,976,000 | |
Exercised | (1,000) | |
Forfeited or expired | (100,000) | (84,000) |
Outstanding at ending | 7,682,000 | 1,806,000 |
Exercisable at ending | 7,682,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights [Roll Forward] | ||
Outstanding at beginning | $ 16.08 | $ 17.20 |
Granted | 11.76 | |
Exercised | 11.76 | |
Forfeited or expired | 90 | 40 |
Outstanding at ending | 11.76 | $ 16.08 |
Exercisable at ending | $ 11.76 | |
Class of Warrant or Right, Weighted Average Remaining Contractual Life of Warrants or Rights [Roll Forward] | ||
Outstanding at ending | 4 years 2 months 15 days | |
Exercisable at ending | 4 years 2 months 15 days |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | ||
Employer contributions to plan | $ 0.2 | $ 0.2 |
Pension plan for the employees | $ 0.1 | $ 0.1 |
Equity Securities - Additional
Equity Securities - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 22, 2019 | Dec. 12, 2018 | Oct. 18, 2018 | Aug. 14, 2018 | May 03, 2018 | Dec. 31, 2019 | Feb. 28, 2019 | Mar. 06, 2017 | Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 04, 2019 | Mar. 13, 2019 |
Class Of Stock [Line Items] | |||||||||||||||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||||
Common stock, no par value (in dollars per share) | |||||||||||||||
Stock-based compensation expense | $ 2,925 | $ 3,589 | |||||||||||||
At The Market Sales Agreement | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Proceeds from issuance or sale of equity, total | $ 4,000 | ||||||||||||||
Number of shares issued (in shares) | 17,000 | 278,000 | |||||||||||||
Gross proceeds from issuance or sale of shares | $ 100 | $ 4,100 | |||||||||||||
Right Offering [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Number of shares issued upon right offering | 5,976,000 | 1,706,000 | |||||||||||||
Share price (in dollars per share) | $ 5.792 | $ 11.76 | |||||||||||||
Proceeds from issuance or sale of equity, total | $ 34,400 | $ 34,400 | |||||||||||||
Exercise price of exercisable warrant | $ 11.76 | ||||||||||||||
Share Price | $ 11.76 | $ 11.76 | |||||||||||||
Right Offering [Member] | Entities Beneficially Owned by Mr. Gregg Williams [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Number of shares issued upon right offering | 5,180,000 | ||||||||||||||
Proceeds from issuance or sale of equity, total | $ 30,000 | ||||||||||||||
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 | ||||||||||
Number of shares issued (in shares) | 409,387 | 308,465 | 403,225 | 844,594 | |||||||||||
Share Price | $ 7.33 | $ 12.96 | $ 12.4 | $ 11.84 | |||||||||||
Directors [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Board of director cash compensation | $ 100 | 200 | |||||||||||||
Stock-based compensation expense | $ 100 | $ 200 | |||||||||||||
Common Stock [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Common stock, shares authorized (in shares) | 300,000,000 | 200,000,000 | |||||||||||||
Common stock, no par value (in dollars per share) | |||||||||||||||
Number of shares issued for services (in shares) | 17,000 | 17 | |||||||||||||
Shares issued for services to directors, amount | $ 300 | ||||||||||||||
Number of shares issued (in shares) | 17 | 2,243 | |||||||||||||
Common Stock [Member] | Right Offering [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Number of securities called by each warrant or right | 1 | ||||||||||||||
Warrant [Member] | Right Offering [Member] | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Number of securities called by each warrant or right | 1 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | May 31, 2021 | Jan. 31, 2018 | Oct. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation | $ 2,925,000 | $ 3,589,000 | |||
Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation , share options granted | 336,000 | 397,000 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 6.13 | $ 15.51 | |||
Restricted Stock Units (RSUs) | |||||
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 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 1 month 20 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 6 | ||||
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Granted | 65,813 | ||||
Fair value of RSUs awarded | $ 400,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 300,000 | ||||
2011 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares authorized | 437,500 | ||||
Number of shares options granted | 937,500 | ||||
Exercisable terms | 10 years | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 2,800,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 21 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 | 336,318 | ||||
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 | $ 1,300,000 | ||||
2011 Equity Incentive Plan | Outside Contractor | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation , share options granted | 3,750 | 18,750 | |||
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 | $ 16.48 | $ 9.68 | |||
Shares issuance expenses | $ 12,000 | $ 43,000 | |||
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 | ||||
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 | $ 5.48 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.52 | ||||
2011 Equity Incentive Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares options granted | 1,500,000 | ||||
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 | $ 8 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.20 | ||||
The 2015 Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
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 | 241,719 | ||||
The 2015 Employee Stock Purchase Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of common stock shares | 12,500 | ||||
Sale of shares cancelled for employees already purchased shares under plan | 45,468 | ||||
Share Based Compensation Arrangement By Share Based Payment Award, Shares Resale By Employees | 2,470 | ||||
Share-based Payment Arrangement, Accelerated Cost | $ 281,000 |
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, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 72.00% | 67.00% |
Weighted-average grant date calculated fair value | $ 3.97 | $ 9.60 |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.43% | 2.32% |
Expected term | 5 years 6 months | 5 years 6 months |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.63% | 3.05% |
Expected term | 6 years 29 days | 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, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options outstanding, number of shares (in shares) | 890 | 709 |
Granted, number of shares (in shares) | 336 | 397 |
Exercised, number of shares (in shares) | (9) | |
Forfeited or expired, number of shares (in shares) | (242) | (207) |
Options outstanding, number of shares (in shares) | 984 | 890 |
Options exercisable, number of shares (in shares) | 498 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 30.68 | $ 38.96 |
Granted, weighted average exercise price (in dollars per share) | 6.13 | 15.51 |
Exercised, weighted average exercise price (in dollars per share) | 15.63 | |
Forfeited or expired, weighted average exercise price (in dollars per share) | 32.75 | 30.64 |
Options outstanding, weighted average exercise price (in dollars per share) | 21.78 | $ 30.68 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 32.42 | |
Options outstanding, weighted average remaining contractual life (Year) | 7 years 8 months 12 days | |
Options exercisable, weighted average remaining contractual life (Year) | 6 years 10 months 17 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Exercise Prices of Common Stock Options Outstanding and Exercisable (Details) | Dec. 31, 2019shares |
Exercise Price Range $5.54 to $6.63 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 286,000 |
Options Exercisable (in shares) | 48,000 |
Exercise Price Range $5.54 to $6.63 | Minimum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 5.54 |
Exercise Price Range $5.54 to $6.63 | Maximum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 6.63 |
Exercise Price Range $6.64 to $13.83 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 111,000 |
Options Exercisable (in shares) | 40,000 |
Exercise Price Range $6.64 to $13.83 | Minimum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 6.64 |
Exercise Price Range $6.64 to $13.83 | Maximum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 13.83 |
Exercise Price Range $13.84 to $16.55 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 408,000 |
Options Exercisable (in shares) | 238,000 |
Exercise Price Range $13.84 to $16.55 | Minimum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 13.84 |
Exercise Price Range $13.84 to $16.55 | Maximum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 16.55 |
Exercise Price Range $16.56 to $72.00 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 101,000 |
Options Exercisable (in shares) | 94,000 |
Exercise Price Range $16.56 to $72.00 | Minimum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 16.56 |
Exercise Price Range $16.56 to $72.00 | Maximum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 72 |
Exercise Price Range $72.08 to $111.20 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 78,000 |
Options Exercisable (in shares) | 78,000 |
Exercise Price Range $72.08 to $111.20 | Minimum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 72.08 |
Exercise Price Range $72.08 to $111.20 | Maximum | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Exercise Price | 111.20 |
Exercise Price Range | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Options Outstanding (in shares) | 984,000 |
Options Exercisable (in shares) | 498,000 |
Stock-based Compensation - Su_4
Stock-based Compensation - Summary of Restricted Stock Unit (RSU) Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding, number of awards (in shares) | 4,000 | 10,000 |
Awarded, number of awards (in shares) | 65,813 | |
Vested (in shares) | 9,000 | 6,000 |
Outstanding, number of awards (in shares) | 61,000 | 4,000 |
Outstanding, weighted average grant date fair value per share (in dollars per share) | $ 99.44 | $ 99.44 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 6 | |
Vested, weighted average grant date fair value per share (in dollars per share) | 52.08 | 99.44 |
Outstanding, weighted average grant date fair value per share (in dollars per share) | $ 5.92 | $ 99.44 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allocated share-based compensation expense | $ 2,925 | $ 3,589 |
Cost of Sales | ||
Allocated share-based compensation expense | 172 | 279 |
Research and Development | ||
Allocated share-based compensation expense | 552 | 382 |
Clinical and Regulatory | ||
Allocated share-based compensation expense | 107 | 152 |
Selling and Marketing | ||
Allocated share-based compensation expense | 481 | 505 |
General and Administrative | ||
Allocated share-based compensation expense | $ 1,613 | $ 2,271 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Stock-based compensation | $ 4,637 | $ 4,297 |
Research credits | 8,208 | 7,003 |
Depreciation | (45) | (48) |
Net operating loss carryforwards | 26,339 | 20,315 |
Inventory reserve | 827 | 651 |
Other | 669 | 643 |
Total deferred tax assets | 40,635 | 32,861 |
Valuation allowance | $ (40,635) | $ (32,861) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 21, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax [Line Items] | ||||
Federal income tax provision | $ 0 | $ 0 | ||
Income tax benefit | $ 0 | |||
Effective federal statutory rate | 21.00% | |||
Research and development tax credit carryforwards expired | 2023 through 2039 | |||
Uncertain tax positions, accrued interest or penalties | $ 0 | $ 0 | ||
Federal | ||||
Income Tax [Line Items] | ||||
Net operating losses carryforward | $ 97,600,000 | |||
Net operating loss carryforwards expired | 2035 through 2037 | |||
Research and development tax credit carryforwards | $ 4,514,000 | |||
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 | $ 43,300,000 | |||
Net operating loss carryforwards expired | 2033 through 2039 | |||
Research and development tax credit carryforwards | $ 3,694,000 | |||
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, 2019 | Dec. 31, 2018 | |
Product Warranties Disclosures [Abstract] | ||
Balance, beginning of year | $ 1,572 | $ 1,456 |
Additions | 359 | 193 |
Settlements | (356) | (264) |
Adjustments and other | 187 | |
Total | $ 1,575 | $ 1,572 |
Right of use Assets and Opera_2
Right of use Assets and Operating Lease Liabilities - Additional Information (Details) - Dec. 31, 2019 | USD ($) | CHF (SFr) |
Lessee Lease Description [Line Items] | ||
Operating lease, renewal term | 5 years | 5 years |
Incremental borrowing rate | 10.00% | 10.00% |
Lease commitment | $ | $ 1,623 | |
CHF | ||
Lessee Lease Description [Line Items] | ||
Lease commitment | SFr | SFr 1,573 |
Right of use Assets and Opera_3
Right of use Assets and Operating Lease Liabilities - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Assets | ||
Non-current assets, Right-of-use assets | $ 2,342 | $ 2,600 |
Liabilities | ||
Current, Current operating lease liabilities | 237 | |
Long term, Long term operating lease liabilities | $ 2,365 |
Right of use Assets and Opera_4
Right of use Assets and Operating Lease Liabilities - Schedule of Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease expense: | |
Operating lease expense | $ 493 |
Total lease expense | 493 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 476 |
For operating lease: | |
Weighted average remaining lease term (in years) | 7 years 1 month 6 days |
Weighted average discount rate | 10.00% |
Right of use Assets and Opera_5
Right of use Assets and Operating Lease Liabilities - Schedule of Minimum Future Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Discounted Lease Liabilities Payments Due [Abstract] | ||
2020 | $ 237 | |
2021 | 278 | |
2022 | 322 | |
2023 | 352 | |
2024 | 393 | |
Thereafter | 1,020 | |
Total | 2,602 | $ 2,800 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 | 491 | |
2021 | 505 | |
2022 | 521 | |
2023 | 516 | |
2024 | 521 | |
Thereafter | 1,183 | |
Total | $ 3,737 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)Female | Dec. 31, 2018USD ($) | |
Commitments And Contingencies [Line Items] | ||
License agreement term | through 2033 | |
License royalty rate | 0.50% | |
Agreements incurred cost | $ 2,152,000 | $ 4,888,000 |
Clinical and regulatory expense | 2,400,000 | 1,800,000 |
Accrued penalties and fines | $ 100,000 | |
Number of members in female board | Female | 0 | |
License Fee | ||
Commitments And Contingencies [Line Items] | ||
Agreements incurred cost | $ 7,000 | $ 100,000 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Product sales | $ 497 | $ 472 | $ 1,282 | $ 1,128 | $ 1,767 | $ 2,246 | $ 1,907 | $ 976 | $ 3,379 | $ 6,896 |
Gross profit | 373 | 108 | 349 | 397 | 167 | 462 | 1,071 | 308 | 1,227 | 2,008 |
Operating loss | (8,126) | (7,619) | (8,441) | (9,768) | (8,877) | (8,546) | (7,988) | (9,769) | (33,954) | (35,180) |
Net loss | $ (7,868) | $ (7,584) | $ (8,440) | $ (9,700) | $ (8,858) | $ (8,522) | $ (7,961) | $ (9,753) | $ (33,592) | $ (35,094) |
Net loss per common share – basic and diluted | $ (0.50) | $ (0.48) | $ (0.56) | $ (0.80) | $ (0.96) | $ (0.96) | $ (0.96) | $ (1.36) | $ (2.28) | $ (4.23) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - $ / shares | Jan. 25, 2019 | Feb. 29, 2020 | Jan. 21, 2020 | Jan. 31, 2019 | Dec. 31, 2018 |
Nasdaq Capital Market [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock market granted consecutive trading days preceding date of letter | 30 days | 30 days | |||
Closing bid price per NASDAQ listing notification letter | $ 1 | $ 1 | |||
Stock Option Grants [Member] | |||||
Subsequent Event [Line Items] | |||||
Exercise price (in dollars per share) | $ 15.63 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock market granted consecutive trading days preceding date of letter | 10 days | ||||
Closing bid price per NASDAQ listing notification letter | $ 1 | ||||
Subsequent Event [Member] | Stock Option Grants [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of shares options granted | 205,701 | ||||
Exercisable terms | 10 years | ||||
Exercise price (in dollars per share) | $ 5.98 | ||||
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 | 118,781 |