Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | SECOND SIGHT MEDICAL PRODUCTS INC | |
Entity Central Index Key | 1,266,806 | |
Document Type | 10-Q | |
Trading Symbol | EYES | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,806,352 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 639 | $ 539 |
Money market funds | 12,705 | 10,336 |
Accounts receivable, net | 668 | 274 |
Inventories, net | 3,245 | 3,416 |
Prepaid expenses and other current assets | 462 | 717 |
Total current assets | 17,719 | 15,282 |
Property and equipment, net | 1,327 | 1,489 |
Deposits and other assets | 35 | 39 |
Total assets | 19,081 | 16,810 |
Current liabilities: | ||
Accounts payable | 826 | 1,156 |
Accrued expenses | 2,330 | 2,088 |
Accrued compensation expense | 2,266 | 1,600 |
Accrued clinical trial expenses | 623 | 629 |
Deferred revenue | 64 | 85 |
Deferred grant revenue | 104 | |
Total current liabilities | 6,109 | 5,662 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, no par value, 10,000 shares authorized; none outstanding | ||
Common stock, no par value; 200,000 shares authorized; shares issued and outstanding: 56,806 and 42,701 at September 30, 2017 and December 31, 2016, respectively | 200,867 | 186,769 |
Common stock to be issued | 86 | 153 |
Additional paid-in capital | 39,559 | 30,697 |
Notes receivable to finance stock option exercises | (2) | |
Accumulated other comprehensive loss | (572) | (608) |
Accumulated deficit | (226,968) | (205,861) |
Total stockholders' equity | 12,972 | 11,148 |
Total liabilities and stockholders' equity | $ 19,081 | $ 16,810 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value (in dollars per share) | ||
Preferred stock, authorized | 10,000 | 10,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, no par value (in dollars per share) | ||
Common stock, authorized | 200,000 | 200,000 |
Common stock, issued | 56,806 | 42,701 |
Common stock, outstanding | 56,806 | 42,701 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,610 | $ 1,180 | $ 4,855 | $ 3,270 |
Cost of sales | 1,001 | 2,615 | 3,255 | 6,768 |
Gross profit (loss) | 609 | (1,435) | 1,600 | (3,498) |
Operating expenses: | ||||
Research and development, net of grants | 1,826 | 1,588 | 5,622 | 3,266 |
Clinical and regulatory | 629 | 609 | 1,927 | 1,955 |
Selling and marketing | 2,375 | 2,262 | 7,057 | 6,473 |
General and administrative | 2,528 | 2,605 | 8,170 | 7,635 |
Total operating expenses | 7,358 | 7,064 | 22,776 | 19,329 |
Loss from operations | (6,749) | (8,499) | (21,176) | (22,827) |
Interest income | 33 | 10 | 69 | 18 |
Net loss | $ (6,716) | $ (8,489) | $ (21,107) | $ (22,809) |
Net loss per common share - basic and diluted (in dollars per share) | $ (0.12) | $ (0.2) | $ (0.4) | $ (0.57) |
Weighted average common shares outstanding - basic and diluted (in shares) | 56,799 | 42,220 | 53,206 | 39,929 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (6,716) | $ (8,489) | $ (21,107) | $ (22,809) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (86) | 34 | 36 | 57 |
Comprehensive loss | $ (6,802) | $ (8,455) | $ (21,071) | $ (22,752) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Common Stock Issuable [Member] | Additional Paid-in Capital [Member] | Notes Receivable for Stock Option Exercises [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Total |
Balance beginning at Dec. 31, 2015 | $ 166,049 | $ 205 | $ 27,277 | $ (5) | $ (581) | $ (172,682) | $ 20,263 |
Balance beginning (in shares) at Dec. 31, 2015 | 35,942 | 33 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock in connection with Employee Stock Purchase Plan | $ 337 | 337 | |||||
Issuance of common stock in connection with Employee Stock Purchase Plan (in shares) | 102 | ||||||
Fair value of stock options issued for services in connection with rights offering | 53 | 53 | |||||
Issuance of RSUs | |||||||
Issuance of RSUs (in shares) | 48 | ||||||
Stock-based compensation expense | 2,581 | 2,581 | |||||
Issuance of common stock in connection with rights offering, net of expenses | $ 19,430 | 19,430 | |||||
Issuance of common stock in connection with rights offering, net of expenses (in shares) | 5,978 | ||||||
Exercise of stock options | $ 478 | 3 | 481 | ||||
Exercise of stock options (in shares) | 95 | ||||||
Stock issued or issuable for professional services | $ 324 | $ (118) | 206 | ||||
Stock issued or issuable for professional services (in shares) | 82 | (7) | |||||
Comprehensive loss: | |||||||
Net loss | (22,809) | (22,809) | |||||
Foreign currency translation adjustment | 57 | 57 | |||||
Comprehensive loss | 57 | (22,809) | (22,752) | ||||
Balance ending at Sep. 30, 2016 | $ 186,618 | $ 87 | 29,911 | (2) | (524) | (195,491) | 20,599 |
Balance ending (in shares) at Sep. 30, 2016 | 42,247 | 26 | |||||
Balance beginning at Dec. 31, 2016 | $ 186,769 | $ 153 | 30,697 | (2) | (608) | (205,861) | $ 11,148 |
Balance beginning (in shares) at Dec. 31, 2016 | 42,701 | 77 | 42,701 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock and warrants in connection with rights offering, net of offering costs | $ 13,647 | 6,021 | $ 19,668 | ||||
Issuance of common stock and warrants in connection with rights offering, net of offering costs (in shares) | 13,653 | ||||||
Issuance of common stock in connection with Employee Stock Purchase Plan | $ 189 | 189 | |||||
Issuance of common stock in connection with Employee Stock Purchase Plan (in shares) | 193 | ||||||
Fair value of stock options issued for services in connection with rights offering | 20 | 20 | |||||
Common stock issued or issuable for services | $ 262 | $ (67) | 195 | ||||
Common stock issued or issuable for services (in shares) | 223 | (2) | |||||
Issuance of RSUs | |||||||
Issuance of RSUs (in shares) | 36 | ||||||
Stock-based compensation expense | 2,821 | 2,821 | |||||
Repayment of notes receivable for stock option exercises | 2 | $ 2 | |||||
Exercise of stock options (in shares) | |||||||
Comprehensive loss: | |||||||
Net loss | (21,107) | $ (21,107) | |||||
Foreign currency translation adjustment | 36 | 36 | |||||
Comprehensive loss | 36 | (21,107) | (21,071) | ||||
Balance ending at Sep. 30, 2017 | $ 200,867 | $ 86 | $ 39,559 | $ (572) | $ (226,968) | $ 12,972 | |
Balance ending (in shares) at Sep. 30, 2017 | 56,806 | 75 | 56,806 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (21,107) | $ (22,809) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization of property and equipment | 345 | 311 |
Stock-based compensation | 2,821 | 2,581 |
Bad debt (recovery) expense | (128) | 191 |
Excess inventory (recovery) reserve | (1,731) | 2,611 |
Common stock issuable for services | 195 | 206 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (311) | 874 |
Inventories | 1,955 | (166) |
Prepaid expenses and other assets | 261 | 492 |
Accounts payable | (299) | (16) |
Accrued expenses | 233 | (377) |
Accrued compensation expenses | 668 | (15) |
Accrued clinical trial expenses | (6) | (61) |
Deferred revenue | (25) | (135) |
Deferred grant revenue | (104) | (1,741) |
Net cash used in operating activities | (17,233) | (18,054) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (181) | (406) |
Investment in money market funds | (2,362) | (1,820) |
Net cash used in investing activities | (2,543) | (2,226) |
Cash flows from financing activities: | ||
Net proceeds from rights offering | 19,688 | 19,483 |
Proceeds from repayment of note receivable | 2 | |
Proceeds from exercise of options and employee stock plan purchases | 189 | 816 |
Net cash provided by financing activities | 19,879 | 20,299 |
Effect of exchange rate changes on cash | (3) | 19 |
Cash: | ||
Net increase | 100 | 38 |
Balance at beginning of period | 539 | 239 |
Balance at end of period | 639 | 277 |
Non-cash financing and investing activities: | ||
Fair value of stock options issued for services rendered in connection with rights offering | $ 20 | $ 53 |
Organization and Business Opera
Organization and Business Operations | 9 Months Ended |
Sep. 30, 2017 | |
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”), formerly Second Sight LLC, was founded in 1998 as a limited liability company and was subsequently incorporated in the State of California in 2003. Second Sight develops, manufactures and markets implantable prosthetic devices that can restore some functional vision to patients blinded by outer retinal degenerations, such as Retinitis Pigmentosa. In 2007, Second Sight formed Second Sight (Switzerland) Sarl, initially to manage clinical trials for its products in Europe, and later to manage sales and marketing in Europe, the Middle East and Asia. As the laws of Switzerland require at least two corporate stockholders, Second Sight (Switzerland) Sarl is 99.5% owned directly by the Company and 0.5% is owned by an executive of Second Sight, who is acting as a nominee of the Company. Accordingly, Second Sight (Switzerland) Sarl is considered 100% owned for financial statement purposes and is consolidated with Second Sight for all periods presented. Since its inception, the Company has generated limited revenues from the sale of products and has financed its operations primarily through the issuance of common stock, convertible debt (which has been converted into common stock), and grants primarily from government agencies. On March 6, 2017, the Company successfully completed a registered Rights Offering to existing stockholders raising net proceeds of approximately $19.7 million in which it sold 13.7 million Units at $1.47 per Unit, which was the closing price of the Company’s common stock on that date. Each Unit consisted of a share of the Company’s common stock and a warrant to purchase an additional share of the Company’s stock for $1.47. The warrants have a five-year life and trade on Nasdaq under the symbol EYESW. At the Company’s discretion, the warrants are redeemable on 30 days’ notice (i) at any time 24 months after the date of issuance, (ii) if the shares of its common stock are trading at 200% or higher than the Subscription Price for 15 consecutive trading days and (iii) if all of the independent directors vote in favor of redeeming the warrants. Holders may be able to sell or exercise warrants prior to any announced redemption date and the Company will redeem outstanding warrants not exercised by the announced redemption date for a nominal amount of $0.01 per Warrant. The Company deemed it appropriate not to record the liability for this warrant redemption amount as the probability of any redemptions was deemed remote based upon its terms. For purposes of recording this transaction, the Company allocated the proceeds from the offering between the common stock and warrants issued based on their relative fair values on the date of issuance. The fair value used for the common stock was the closing price of the stock of $1.47 on March 6, 2017. The fair value used for the warrants was their Black-Scholes value of $0.64 per warrant, calculated as of March 6, 2017. Accordingly, the relative fair value assigned to the common stock was $1.02 per share and the relative fair value assigned to the warrants was $0.45 per warrant. The Company is using these proceeds to invest in its business to expand sales and marketing efforts, enhance current products, gain regulatory approvals for additional indications, and continue research and development into next generation technology. The Company evaluated the financial impact of FASB ASC 260, “Earnings per Share,” which states, among other things, that if a rights issue is offered to all existing stockholders at an exercise price that is less than the fair value of the stock, then the weighted average shares outstanding and basic and diluted earnings per share shall be adjusted retroactively to reflect the bonus element of the rights offering for all periods presented. The Company determined that the application of this specific provision of ASC 260 was immaterial to previously issued financial statements and, therefore, did not retroactively adjust previously reported weighted average shares outstanding and basic and diluted earnings per share. 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. The Company is subject to the risks and uncertainties associated with a business with one product line and limited commercial product revenues, including limitations on its operating capital resources and uncertain demand for its products. The Company has incurred recurring operating losses and negative operating cash flows since inception, and expects to continue to incur operating losses and negative operating cash flows for at least the next several years as a result of which, management has concluded that there is substantial doubt about the Company’s ability to continue as a going concern. The Company’s independent registered public accounting firm, in its report on the Company’s 2016 consolidated financial statements, has also raised substantial doubt about the Company’s ability to continue as a going concern. The Company believes that it has sufficient funds to last through the first quarter of 2018. To continue business operations beyond that point, the Company will need to raise additional debt and/or equity capital. However, there can be no assurances that the Company will be able to secure any such additional financing on acceptable terms and conditions, or at all so as to be able to continue operating its business at current levels past the first quarter of 2018. If cash resources become insufficient to satisfy the Company’s ongoing cash requirements, the Company would be required to scale back or discontinue its technology and product development programs and/or clinical trials, or obtain funds, if available (although there can be no certainty), through strategic alliances that may require the Company to relinquish rights to its products, or to discontinue its operations entirely. |
Basis of Presentation, Signific
Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements | 2. Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet at December 31, 2016 has been derived from the Company’s audited consolidated financial statements. In the opinion of management, these financial statements reflect all normal recurring and other adjustments necessary for a fair presentation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. Significant Accounting Policies The Company’s significant accounting policies are set forth in Note 2 of the financial statements in its Annual Report on Form 10-K for the year ended December 31, 2016. Net Operating Loss Carryforwards As of December 31, 2016 pursuant to an analysis done under Section 382, Limitations on Net Operating Losses, of the Internal Revenue Code of 1986, as amended, the Company had $142.3 million and $93.8 million of federal and state operating loss carryforwards, respectively, with which to offset any future taxable income. The federal and state net operating loss carryforwards will begin to expire at various dates from 2016 through 2036. If these loss carryforwards are unavailable for use in future periods, the Company’s results of operations and financial position may be adversely affected. The Company 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 the Company’s net operating loss carryforwards to an annual limitation, which will significantly restrict the Company’s ability to use them to offset taxable income in periods following the ownership change. In general, the annual use limitation equals the aggregate value of the Company’s stock at the time of the ownership change multiplied by a tax-exempt interest rate specified by the Internal Revenue Service. The Company has analyzed the available information to determine the amount of the annual limitation. Based on information available to the Company, the limitation arising from this ownership change is estimated to range between $1.4 million and $3.7 million annually. In total, the Company estimates that the 2017 ownership change will result in approximately $102 million and $54 million of federal and state net operating loss carryforwards, respectively, expiring unused. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09-Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which provides new guidance for revenue recognition. The Financial Accounting Standards Board (“FASB”) subsequently issued ASU No. 2015-14-Revenue from Contracts with Customers (Topic 606), which d eferred the effective date of ASU 2014-09, ASU No. 2016-08-Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12-Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20-Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The above subsequent ASUs The core principle in ASC 606 is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 also creates ASC Subtopic 340-40-Other Assets and Deferred Costs-Contracts with Customers (“ASC 340-40”), which requires an entity to recognize an asset for certain types of costs related to a contract with a customer within the scope of ASC 606 and amortize the asset over a period consistent with the transfer of the goods and services to which the asset relates. Specifically, the costs required to be capitalized are (a) incremental costs of obtaining a contract with a customer and (b) costs incurred in fulfilling a contract with a customer that are not in the scope of another ASC Topic. ASC 606 and ASC 340-40 (the “new accounting standards”) require the Company to make significant judgments and estimates. The new accounting standards also require more extensive disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company will adopt the new accounting standards as of January 1, 2018 using the modified retrospective transition method, in which the two new accounting standards are applied retrospectively with the cumulative effect of initially applying the new accounting standards as an adjustment to the opening balance of retained earnings at January 1, 2018, the date of initial adoption. In accordance with the modified retrospective transition method, the Company will apply the new guidance retrospectively only to contracts that are not completed contracts at January 1, 2018. Also in accordance with the modified retrospective transition method, the Company will provide additional disclosures in its financial statements for each of the quarterly and annual reporting periods in 2018 of (a) the amount by which each financial statement line item is affected in the reporting period by the application of the new accounting standards as compared to the accounting guidance that was in effect before the change, and (b) an explanation of the reasons for significant changes identified. The Company completed an initial assessment of adoption of ASC 606, and is currently in the process of updating that assessment to reflect changes in contractual terms and the Company’s customary business practices since completion of the initial assessment. The Company is also assessing the ASC 606 revenue recognition policy related to a new type of revenue arrangement the Company entered into subsequent to September 30, 2017 which is expected to generate revenue in the fourth quarter of 2017. The Company has not yet estimated the financial statement impact of the expected changes due to the adoption of ASC 606. The Company expects to complete its assessment during the fourth quarter of 2017 and will adopt the new accounting standards effective January 1, 2018. Management does not believe that any other recently issued, but not yet effective, accounting standards, if adopted, will have a material effect on the financial statements. |
Concentration of Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | 3. Concentration of Risk Credit Risk Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, money market funds, and trade accounts receivable. The Company maintains cash and money market funds with financial institutions that management deems reputable, and at times, cash balances may be in excess of Federal Deposit Insurance Corporation and Securities Investor Protection Corporation insurance limits. The Company extends differing levels of credit to customers, and typically does not require collateral. The Company also maintains a cash balance at a bank in Switzerland, which is insured up to an amount specified by the deposit insurance agency of Switzerland. Customer Concentration During the three and nine months ended September 30, 2017 and 2016, the following customers comprised more than 10% of revenues (unaudited) : Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Customer 1 18 % 0 % 8 % 0 % Customer 2 18 % 0 % 6 % 4 % Customer 3 18 % 0 % 6 % 0 % Customer 4 10 % 0 % 3 % 0 % Customer 5 9 % 0 % 11 % 0 % Customer 6 0 % 21 % 0 % 8 % Customer 7 0 % 12 % 3 % 3 % Customer 8 0 % 11 % 0 % 16 % Customer 9 0 % 0 % 0 % 10 % As of September 30, 2017 and December 31, 2016, the following customers comprised more than 10% of accounts receivable: September 30, December 31, 2017 2016 (unaudited) Customer 1 24 % 0 % Customer 2 22 % 0 % Customer 3 20 % 0 % Customer 4 19 % 0 % Customer 5 14 % 34 % Customer 6 0 % 34 % Customer 7 0 % 28 % Geographic Concentration During the three and nine months ended September 30, 2017 and 2016, regional revenue, based on customer locations which comprised more than 10% of revenues, consisted of the following (unaudited) : Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 United States 72 % 47 % 59 % 47 % Italy 9 % 11 % 11 % 21 % Germany 5 % 35 % 3 % 15 % Sources of Supply Several of the components, materials and services used in the Company’s current Argus II product are available from only one supplier, and substitutes for these items cannot be obtained easily or would require substantial design or manufacturing modifications. Any significant problem experienced by one of the Company’s sole source suppliers could result in a delay or interruption in the supply of components to the Company until that supplier cures the problem or an alternative source of the component is located and qualified. Even where the Company could qualify alternative suppliers, the substitution of suppliers may be at a higher cost and create time delays that impede the commercial production of the Argus II and impact the Company’s abilities to deliver its products as may be timely required to meet demand. Foreign Operations The accompanying condensed consolidated financial statements as of September 30, 2017 (unaudited) and December 31, 2016 include assets amounting to $2.0 million and $1.7 million, respectively, relating to operations of the Company’s subsidiary based in Switzerland. It is possible that unanticipated events in foreign countries could disrupt the Company’s operations. |
Money Market Funds
Money Market Funds | 9 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Money Market Funds | 4. Money Market Funds 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. Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that the Company has 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. Money market funds are the only financial instrument measured and recorded at fair value on the Company’s balance sheet, and they are considered Level 1 valuation securities. The following table presents money market funds at their level within the fair value hierarchy at September 30, 2017 and December 31, 2016 (in thousands): Total Level 1 Level 2 Level 3 September 30, 2017 (unaudited): Money market funds $ 12,705 $ 12,705 $ $ — December 31, 2016: Money market funds $ 10,336 $ 10,336 $ — $ — |
Selected Balance Sheet Detail
Selected Balance Sheet Detail | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Selected Balance Sheet Detail | 5. Selected Balance Sheet Detail Accounts receivable, net Accounts receivable consisted of the following at (in thousands): September 30, December 31, 2017 2016 (Unaudited) Accounts receivable $ 757 $ 487 Allowance for doubtful accounts (89 ) (213 ) Accounts receivable, net $ 668 $ 274 Inventories, net Inventories consisted of the following at (in thousands): September 30, December 31, 2017 2016 (Unaudited) Raw materials $ 390 $ 477 Work in process 3,378 5,032 Finished goods 3,123 3,284 6,891 8,793 Allowance for excess and obsolescence (3,646 ) (5,377 ) Inventories, net $ 3,245 $ 3,416 Property and equipment, net of accumulated depreciation and amortization Property and equipment consisted of the following at (in thousands): September 30, December 31, 2017 2016 (Unaudited) Laboratory equipment $ 2,398 $ 2,300 Computer hardware and software 1,297 1,220 Leasehold improvements 299 288 Furniture, fixtures and equipment 46 45 4,040 3,853 Accumulated depreciation and amortization (2,713 ) (2,364 ) Property and equipment, net $ 1,327 $ 1,489 |
Equity Securities
Equity Securities | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Equity Securities | 6. Equity Securities Common Stock Issuable Non-employee members of the Board of Directors are paid for their services in common stock on June 1 of each year based on the average closing prices for the immediately preceding twenty trading days. As of September 30, 2017, the Company accrued $86,000 for these services, which equates to 75,000 shares. These shares have not yet been issued and are excluded from the calculation of weighted average common shares outstanding for EPS purposes. Potentially Dilutive Common Stock Equivalents At September 30, 2017 and 2016, the Company excluded the outstanding securities summarized below, which entitle the holders thereof to ultimately acquire shares of common stock, from its calculations of earnings per share and weighted average shares outstanding, as their effect would have been anti-dilutive (in thousands), as follows (unaudited): September 30, September 30, 2017 2016 Long Term Investor Rights — 342 Underwriter’s warrants 802 802 Warrants associated with convertible debt 676 1,038 Warrants associated with March 2017 Rights Offering 13,652 — Common stock options 5,530 3,669 Restricted stock units 95 142 Employee stock purchase plan 220 109 Total 20,975 6,102 |
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2017 | |
Warrants | |
Warrants | 7. Warrants A summary of warrant activity for the nine months ended September 30, 2017 is presented below (in thousands, except per share and contractual life data) (unaudited). Weighted Average Weighted Remaining Number of Average Contractual Shares Exercise Price Life (in Years) Warrants outstanding at December 31, 2016 1,840 $ 7.72 1.80 Issued 13,652 $ 1.47 Exercised — Forfeited or expired (362 ) $ 5.00 Warrants outstanding at September 30, 2017 15,130 $ 2.15 4.15 Warrants exercisable at September 30, 2017 15,130 $ 2.15 4.15 The intrinsic value of warrants outstanding at September 30, 2017 was $0. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation Effective June 1, 2011, the Company adopted the 2011 Equity Incentive Plan (the “2011 Plan”), which replaced previous equity plans. On June 6, 2017, the shareholders approved amendments to the 2011 Plan increasing the maximum number of shares of common stock that may be issued from 7,500,000 to 9,500,000, which is offset and reduced by options previously granted under previous plans. 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. In the event of a change of control, as defined in the 2011 Plan, vesting is accelerated. A summary of stock option activity for the nine months ended September 30, 2017 is presented below (in thousands, except per share and contractual life data) (unaudited). Number Weighted Average Weighted Average Remaining Contractual of Shares Exercise Price Life (in Years) Options outstanding at December 31, 2016 3,667 $ 7.23 6.27 Granted 2,504 $ 1.85 Exercised — — Forfeited or expired (641 ) $ 5.58 Options outstanding at September 30, 2017 5,530 $ 4.98 7.56 Options exercisable at September 30, 2017 2,090 $ 7.15 5.36 The estimated aggregate intrinsic value of stock options exercisable at September 30, 2017 was $0. As of September 30, 2017, there was $5.7 million of total unrecognized compensation cost related to outstanding stock options that will be recognized over a weighted average period of 2.91 years. During the nine months ended September 30, 2017, the Company granted stock options to purchase 2,464,150 shares of common stock to certain employees. The options are exercisable for a period of ten years from the date of grant at prices ranging from $1.13 to $1.97 per share, which was the fair value of the Company’s common stock on the respective grant dates. The options vest over a period of four years. The fair value of these options, as calculated pursuant to the Black-Scholes option-pricing model, was determined to be $2,222,000 ($0.55 to $0.96 per share). Assumptions used in the model were an expected term of 6.25 years, volatility of 48.0%, a risk-free interest rate of 1.92% to 2.14%, and an expected dividend rate of 0%. In March 2017, the Company granted stock options to purchase 40,000 shares of common stock to an outside attorney in connection with his services relating to the Company’s March, 2017 rights offering to stockholders. The options are exercisable for a period of four years from the date of grant at a price of $1.76 per share, which was 120% of the fair value of the Company’s common stock on the grant date of March 6, 2017. The options vested as of the date of grant. The fair value of these options, as calculated pursuant to the Black-Scholes option-pricing model, was determined to be $19,640 ($0.49 per share). Assumptions used in the model were an expected term of 4.0 years, volatility of 48.0%, a risk-free interest rate of 1.81%, and an expected dividend rate of 0%. The cost of these shares was treated as an issuance cost of the offering and was deducted from the gross proceeds from the offering. The Company adopted an employee stock purchase plan (“ESPP”) starting in June 2015 for all eligible employees. On June 6, 2017, the shareholders approved an amendment to the ESPP increasing the maximum number of shares of common stock that may be issued from 250,000 to 750,000. Under the ESPP, shares of the Company’s common stock may be purchased at six-month intervals at 85% of the lower of the closing fair market value of the common stock (i) on the first trading day of the offering period or (ii) on the last trading day of the purchase period. An employee may purchase in any one calendar year shares of common stock having an aggregate fair market value of up to $25,000 determined as of the first trading day of the offering period. Additionally, a participating employee may not purchase more than 100,000 shares of common stock in any one offering period. At September 30, 2017, 435,139 shares had been purchased under the ESPP. The following table summarizes Restricted Stock Unit (RSU) activity (unaudited) for the nine months ended September 30, 2017 (in thousands, except per share data): Number of Awards Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2016 131 $ 12.43 Awarded — — Vested (36 ) 12.43 Forfeited/canceled — — Outstanding as of September 30, 2017 95 $ 12.43 As of September 30, 2017, there was $1.1 million of total unrecognized compensation cost related to the outstanding RSUs that will be recognized over a weighted average period of 1.88 years. Stock-based compensation expense recognized for stock-based awards granted under the 2011 Plan and the ESPP in the condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 is as follows (in thousands) (unaudited): Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Cost of sales $ 36 $ 80 $ 184 $ 245 Research and development 71 77 203 238 Clinical and regulatory 42 43 135 136 Selling and marketing 116 74 321 59 General and administrative 641 624 1,978 1,903 Total $ 906 $ 898 $ 2,821 $ 2,581 |
Litigation, Claims and Assessme
Litigation, Claims and Assessments | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Claims and Assessments | 9. Litigation, Claims and Assessments Twenty-one oppositions have been filed by a third-party in the European Patent Office each challenging the validity of a European patent owned or exclusively licensed by the Company. The outcome of the challenges is not certain, however, if successful, they may affect the Company’s ability to block competitors from utilizing some of its patented technology in Europe. Management of the Company does not believe that a successful challenge will have a material effect on the Company’s ability to manufacture and sell its products, or otherwise have a material effect on the Company’s operations. The Company is party to litigation arising in the ordinary course of business. It is management’s opinion that the outcome of such matters will not have a material effect on the Company’s financial statements. |
Basis of Presentation, Signif17
Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet at December 31, 2016 has been derived from the Company’s audited consolidated financial statements. In the opinion of management, these financial statements reflect all normal recurring and other adjustments necessary for a fair presentation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. |
Significant Accounting Policies | Significant Accounting Policies The Company’s significant accounting policies are set forth in Note 2 of the financial statements in its Annual Report on Form 10-K for the year ended December 31, 2016. |
Net Operating Loss Carryforwards | Net Operating Loss Carryforwards As of December 31, 2016 pursuant to an analysis done under Section 382, Limitations on Net Operating Losses, of the Internal Revenue Code of 1986, as amended, the Company had $142.3 million and $93.8 million of federal and state operating loss carryforwards, respectively, with which to offset any future taxable income. The federal and state net operating loss carryforwards will begin to expire at various dates from 2016 through 2036. If these loss carryforwards are unavailable for use in future periods, the Company’s results of operations and financial position may be adversely affected. The Company 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 the Company’s net operating loss carryforwards to an annual limitation, which will significantly restrict the Company’s ability to use them to offset taxable income in periods following the ownership change. In general, the annual use limitation equals the aggregate value of the Company’s stock at the time of the ownership change multiplied by a tax-exempt interest rate specified by the Internal Revenue Service. The Company has analyzed the available information to determine the amount of the annual limitation. Based on information available to the Company, the limitation arising from this ownership change is estimated to range between $1.4 million and $3.7 million annually. In total, the Company estimates that the 2017 ownership change will result in approximately $102 million and $54 million of federal and state net operating loss carryforwards, respectively, expiring unused. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09-Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which provides new guidance for revenue recognition. The Financial Accounting Standards Board (“FASB”) subsequently issued ASU No. 2015-14-Revenue from Contracts with Customers (Topic 606), which d eferred the effective date of ASU 2014-09, ASU No. 2016-08-Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU No. 2016-12-Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20-Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The above subsequent ASUs The core principle in ASC 606 is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 also creates ASC Subtopic 340-40-Other Assets and Deferred Costs-Contracts with Customers (“ASC 340-40”), which requires an entity to recognize an asset for certain types of costs related to a contract with a customer within the scope of ASC 606 and amortize the asset over a period consistent with the transfer of the goods and services to which the asset relates. Specifically, the costs required to be capitalized are (a) incremental costs of obtaining a contract with a customer and (b) costs incurred in fulfilling a contract with a customer that are not in the scope of another ASC Topic. ASC 606 and ASC 340-40 (the “new accounting standards”) require the Company to make significant judgments and estimates. The new accounting standards also require more extensive disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company will adopt the new accounting standards as of January 1, 2018 using the modified retrospective transition method, in which the two new accounting standards are applied retrospectively with the cumulative effect of initially applying the new accounting standards as an adjustment to the opening balance of retained earnings at January 1, 2018, the date of initial adoption. In accordance with the modified retrospective transition method, the Company will apply the new guidance retrospectively only to contracts that are not completed contracts at January 1, 2018. Also in accordance with the modified retrospective transition method, the Company will provide additional disclosures in its financial statements for each of the quarterly and annual reporting periods in 2018 of (a) the amount by which each financial statement line item is affected in the reporting period by the application of the new accounting standards as compared to the accounting guidance that was in effect before the change, and (b) an explanation of the reasons for significant changes identified. The Company completed an initial assessment of adoption of ASC 606, and is currently in the process of updating that assessment to reflect changes in contractual terms and the Company’s customary business practices since completion of the initial assessment. The Company is also assessing the ASC 606 revenue recognition policy related to a new type of revenue arrangement the Company entered into subsequent to September 30, 2017 which is expected to generate revenue in the fourth quarter of 2017. The Company has not yet estimated the financial statement impact of the expected changes due to the adoption of ASC 606. The Company expects to complete its assessment during the fourth quarter of 2017 and will adopt the new accounting standards effective January 1, 2018. Management does not believe that any other recently issued, but not yet effective, accounting standards, if adopted, will have a material effect on the financial statements. |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Schedule of revenues, accounts receivable & geographic concentration | During the three and nine months ended September 30, 2017 and 2016, the following customers comprised more than 10% of revenues (unaudited) : Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Customer 1 18 % 0 % 8 % 0 % Customer 2 18 % 0 % 6 % 4 % Customer 3 18 % 0 % 6 % 0 % Customer 4 10 % 0 % 3 % 0 % Customer 5 9 % 0 % 11 % 0 % Customer 6 0 % 21 % 0 % 8 % Customer 7 0 % 12 % 3 % 3 % Customer 8 0 % 11 % 0 % 16 % Customer 9 0 % 0 % 0 % 10 % As of September 30, 2017 and December 31, 2016, the following customers comprised more than 10% of accounts receivable: September 30, December 31, 2017 2016 (unaudited) Customer 1 24 % 0 % Customer 2 22 % 0 % Customer 3 20 % 0 % Customer 4 19 % 0 % Customer 5 14 % 34 % Customer 6 0 % 34 % Customer 7 0 % 28 % During the three and nine months ended September 30, 2017 and 2016, regional revenue, based on customer locations which comprised more than 10% of revenues, consisted of the following (unaudited) : Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 United States 72 % 47 % 59 % 47 % Italy 9 % 11 % 11 % 21 % Germany 5 % 35 % 3 % 15 % |
Money Market Funds (Tables)
Money Market Funds (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of money market funds | The following table presents money market funds at their level within the fair value hierarchy at September 30, 2017 and December 31, 2016 (in thousands): Total Level 1 Level 2 Level 3 September 30, 2017 (unaudited): Money market funds $ 12,705 $ 12,705 $ $ — December 31, 2016: Money market funds $ 10,336 $ 10,336 $ — $ — |
Selected Balance Sheet Detail (
Selected Balance Sheet Detail (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of accounts receivable | Accounts receivable consisted of the following at (in thousands): September 30, December 31, 2017 2016 (Unaudited) Accounts receivable $ 757 $ 487 Allowance for doubtful accounts (89 ) (213 ) Accounts receivable, net $ 668 $ 274 |
Schedule of inventories | Inventories consisted of the following at (in thousands): September 30, December 31, 2017 2016 (Unaudited) Raw materials $ 390 $ 477 Work in process 3,378 5,032 Finished goods 3,123 3,284 6,891 8,793 Allowance for excess and obsolescence (3,646 ) (5,377 ) Inventories, net $ 3,245 $ 3,416 |
Schedule of property and equipment | Property and equipment consisted of the following at (in thousands): September 30, December 31, 2017 2016 (Unaudited) Laboratory equipment $ 2,398 $ 2,300 Computer hardware and software 1,297 1,220 Leasehold improvements 299 288 Furniture, fixtures and equipment 46 45 4,040 3,853 Accumulated depreciation and amortization (2,713 ) (2,364 ) Property and equipment, net $ 1,327 $ 1,489 |
Equity Securities (Tables)
Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of anti-dilutive securities | At September 30, 2017 and 2016, the Company excluded the outstanding securities summarized below, which entitle the holders thereof to ultimately acquire shares of common stock, from its calculations of earnings per share and weighted average shares outstanding, as their effect would have been anti-dilutive (in thousands), as follows (unaudited): September 30, September 30, 2017 2016 Long Term Investor Rights — 342 Underwriter’s warrants 802 802 Warrants associated with convertible debt 676 1,038 Warrants associated with March 2017 Rights Offering 13,652 — Common stock options 5,530 3,669 Restricted stock units 95 142 Employee stock purchase plan 220 109 Total 20,975 6,102 |
Warrants (Tables)
Warrants (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Warrants | |
Schedule of warrant activity | A summary of warrant activity for the nine months ended September 30, 2017 is presented below (in thousands, except per share and contractual life data) (unaudited). Weighted Average Weighted Remaining Number of Average Contractual Shares Exercise Price Life (in Years) Warrants outstanding at December 31, 2016 1,840 $ 7.72 1.80 Issued 13,652 $ 1.47 Exercised — Forfeited or expired (362 ) $ 5.00 Warrants outstanding at September 30, 2017 15,130 $ 2.15 4.15 Warrants exercisable at September 30, 2017 15,130 $ 2.15 4.15 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | A summary of stock option activity for the nine months ended September 30, 2017 is presented below (in thousands, except per share and contractual life data) (unaudited). Number Weighted Average Weighted Average Remaining Contractual of Shares Exercise Price Life (in Years) Options outstanding at December 31, 2016 3,667 $ 7.23 6.27 Granted 2,504 $ 1.85 Exercised — — Forfeited or expired (641 ) $ 5.58 Options outstanding at September 30, 2017 5,530 $ 4.98 7.56 Options exercisable at September 30, 2017 2,090 $ 7.15 5.36 |
Schedule of restricted stock unit (RSU) activity | The following table summarizes Restricted Stock Unit (RSU) activity (unaudited) for the nine months ended September 30, 2017 (in thousands, except per share data): Number of Awards Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2016 131 $ 12.43 Awarded — — Vested (36 ) 12.43 Forfeited/canceled — — Outstanding as of September 30, 2017 95 $ 12.43 |
Schedule of stock-based compensation | Stock-based compensation expense recognized for stock-based awards granted under the 2011 Plan and the ESPP in the condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 is as follows (in thousands) (unaudited): Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Cost of sales $ 36 $ 80 $ 184 $ 245 Research and development 71 77 203 238 Clinical and regulatory 42 43 135 136 Selling and marketing 116 74 321 59 General and administrative 641 624 1,978 1,903 Total $ 906 $ 898 $ 2,821 $ 2,581 |
Organization and Business Ope24
Organization and Business Operations (Details Narrative) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Mar. 06, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2007 |
Subsidiary, Sale of Stock [Line Items] | ||||
Warrant exercise price (in dollars per share) | $ 2.15 | $ 7.72 | ||
Right Offering [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from issuance of units | $ 19,700 | |||
Number of units sold | 13,700 | |||
Unit price (in dollars per unit) | $ 1.47 | |||
Description of unit | Each Unit consisted of a share of the Company’s common stock and a warrant to purchase an additional share of the Company’s stock for $1.47. | |||
Relative fair value of common stock (in dollars per share) | $ 1.02 | |||
Right Offering [Member] | Warrant [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Share price (in dollars per share) | 1.47 | |||
Warrant exercise price (in dollars per share) | 0.64 | |||
Relative fair value of warrants (in dollars per share) | $ 0.45 | |||
Warrant term | 5 years | |||
Second Sight (Switzerland) Sarl [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Ownership percentage by parent | 100.00% | 99.50% | ||
Second Sight (Switzerland) Sarl [Member] | Executive Officer [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Ownership percentage by noncontrolling interest | 0.50% |
Basis of Presentation, Signif25
Basis of Presentation, Significant Accounting Policies and Recent Accounting Pronouncements (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Net operating loss carryforwards limitations | The Company has analyzed the available information to determine the amount of the annual limitation. Based on information available to the Company, the limitation arising from this ownership change is estimated to range between $1.4 million and $3.7 million annually. In total, the Company estimates that the 2017 ownership change will result in approximately $102 million and $54 million of federal and state net operating loss carryforwards, respectively, expiring unused. | |
Federal [Member] | ||
Net operating loss carryforwards | $ 142,300 | |
State [Member] | ||
Net operating loss carryforwards | $ 93,800 |
Concentration of Risk (Details)
Concentration of Risk (Details) - Sales Revenue, Net [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Customer 1 [Member] | ||||
Customer Concentration | 18.00% | 0.00% | 8.00% | 0.00% |
Customer 2 [Member] | ||||
Customer Concentration | 18.00% | 0.00% | 6.00% | 4.00% |
Customer 3 [Member] | ||||
Customer Concentration | 18.00% | 0.00% | 6.00% | 0.00% |
Customer 4 [Member] | ||||
Customer Concentration | 10.00% | 0.00% | 3.00% | 0.00% |
Customer 5 [Member] | ||||
Customer Concentration | 9.00% | 0.00% | 11.00% | 0.00% |
Customer 6 [Member] | ||||
Customer Concentration | 0.00% | 21.00% | 0.00% | 8.00% |
Customer 7 [Member] | ||||
Customer Concentration | 0.00% | 12.00% | 3.00% | 3.00% |
Customer 8 [Member] | ||||
Customer Concentration | 0.00% | 11.00% | 0.00% | 16.00% |
Customer 9 [Member] | ||||
Customer Concentration | 0.00% | 0.00% | 0.00% | 10.00% |
Concentration of Risk (Details
Concentration of Risk (Details 1) - Accounts Receivable [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Customer 1 [Member] | ||
Customer Concentration | 24.00% | 0.00% |
Customer 2 [Member] | ||
Customer Concentration | 22.00% | 0.00% |
Customer 3 [Member] | ||
Customer Concentration | 20.00% | 0.00% |
Customer 4 [Member] | ||
Customer Concentration | 19.00% | 0.00% |
Customer 5 [Member] | ||
Customer Concentration | 14.00% | 34.00% |
Customer 6 [Member] | ||
Customer Concentration | 0.00% | 34.00% |
Customer 7 [Member] | ||
Customer Concentration | 0.00% | 28.00% |
Concentration of Risk (Detail28
Concentration of Risk (Details 2) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
UNITED STATES | ||||
Customer Concentration | 72.00% | 47.00% | 59.00% | 47.00% |
ITALY | ||||
Customer Concentration | 9.00% | 11.00% | 11.00% | 21.00% |
GERMANY | ||||
Customer Concentration | 5.00% | 35.00% | 3.00% | 15.00% |
Concentration of Risk (Detail29
Concentration of Risk (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | $ 19,081 | $ 16,810 |
Second Sight (Switzerland) Sarl [Member] | ||
Assets | $ 2,000 | $ 1,700 |
Money Market Funds (Details)
Money Market Funds (Details) - Money Market Funds [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Money market funds | $ 12,705 | $ 10,336 |
Level 1 [Member] | ||
Money market funds | 12,705 | 10,336 |
Level 2 [Member] | ||
Money market funds | ||
Level 3 [Member] | ||
Money market funds |
Selected Balance Sheet Detail31
Selected Balance Sheet Detail (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable | $ 757 | $ 487 |
Allowance for doubtful accounts | (89) | (213) |
Accounts receivable, net | $ 668 | $ 274 |
Selected Balance Sheet Detail32
Selected Balance Sheet Detail (Details 1) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 390 | $ 477 |
Work in process | 3,378 | 5,032 |
Finished goods | 3,123 | 3,284 |
Inventories, gross | 6,891 | 8,793 |
Allowance for excess and obsolescence | (3,646) | (5,377) |
Inventories, net | $ 3,245 | $ 3,416 |
Selected Balance Sheet Detail33
Selected Balance Sheet Detail (Details 2) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,040 | $ 3,853 |
Accumulated depreciation and amortization | (2,713) | (2,364) |
Property and equipment, net | 1,327 | 1,489 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,398 | 2,300 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,297 | 1,220 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 299 | 288 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 46 | $ 45 |
Equity Securities (Details)
Equity Securities (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Total anti-dilutive securities | 20,975 | 6,102 |
Long Term Investor Rights [Member] | ||
Total anti-dilutive securities | 342 | |
Underwriter's Warrants [Member] | ||
Total anti-dilutive securities | 802 | 802 |
Warrants Associated With Convertible Debt [Member] | ||
Total anti-dilutive securities | 676 | 1,038 |
Warrants Associated With Rights Offering [Member] | ||
Total anti-dilutive securities | 13,652 | |
Common Stock Options [Member] | ||
Total anti-dilutive securities | 5,530 | 3,669 |
Restricted Stock Units [Member] | ||
Total anti-dilutive securities | 95 | 142 |
Employee Stock Purchase Plan [Member] | ||
Total anti-dilutive securities | 220 | 109 |
Equity Securities (Details Narr
Equity Securities (Details Narrative) - Non-Employee [Member] shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)shares | |
Accrued services | $ | $ 86 |
Number of shares issued for services | shares | 75 |
Warrants (Details)
Warrants (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Class Of Warrant Or Right Number Of Shares [Roll Forward] | |
Warrants outstanding at beginning | 1,840 |
Issued | 13,652 |
Exercised | |
Forfeited or expired | (362) |
Warrants outstanding at end | 15,130 |
Warrants exercisable at end | 15,130 |
Class Of Warrant Or Right Weighted Average Exercise Price [Roll Forward] | |
Warrants outstanding at beginning | $ / shares | $ 7.72 |
Issued | $ / shares | 1.47 |
Forfeited or expired | $ / shares | 5 |
Warrants outstanding at end | $ / shares | 2.15 |
Warrants exercisable at end | $ / shares | $ 2.15 |
Class Of Warrant Or Right Weighted Average Remaining Contractual Life [Roll Forward] | |
Warrants outstanding at beginning | 1 year 9 months 18 days |
Warrants outstanding at end | 4 years 1 month 24 days |
Warrants exercisable at end | 4 years 1 month 24 days |
Warrants (Details Narrative)
Warrants (Details Narrative) $ in Thousands | Sep. 30, 2017USD ($) |
Warrant [Member] | |
Intrinsic value of warrants outstanding | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding at beginning | shares | 3,667 |
Granted | shares | 2,504 |
Exercised | shares | |
Forfeited or expired | shares | (641) |
Options outstanding at ending | shares | 5,530 |
Options exercisable at ending | shares | 2,090 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding at beginning | $ / shares | $ 7.23 |
Granted | $ / shares | 1.85 |
Exercised | $ / shares | |
Forfeited or expired | $ / shares | 5.58 |
Options outstanding at ending | $ / shares | 4.98 |
Options exercisable at ending | $ / shares | $ 7.15 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Life [Roll Forward] | |
Options outstanding at beginning | 6 years 3 months 7 days |
Options outstanding at ending | 7 years 6 months 22 days |
Options exercisable at ending | 5 years 4 months 10 days |
Stock-Based Compensation (Det39
Stock-Based Compensation (Details 1) - Restricted Stock Units [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at beginning | shares | 131 |
Awarded | shares | |
Vested | shares | (36) |
Forfeited/canceled | shares | |
Outstanding at ending | shares | 95 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding at beginning | $ / shares | $ 12.43 |
Awarded | $ / shares | |
Vested | $ / shares | 12.43 |
Forfeited/canceled | $ / shares | |
Outstanding at ending | $ / shares | $ 12.43 |
Stock-Based Compensation (Det40
Stock-Based Compensation (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Total | $ 906 | $ 898 | $ 2,821 | $ 2,581 |
Cost of Sales [Member] | ||||
Total | 36 | 80 | 184 | 245 |
Research and Development [Member] | ||||
Total | 71 | 77 | 203 | 238 |
Clinical And Regulatory [Member] | ||||
Total | 42 | 43 | 135 | 136 |
Selling and Marketing [Member] | ||||
Total | 116 | 74 | 321 | 59 |
General and Administrative [Member] | ||||
Total | $ 641 | $ 624 | $ 1,978 | $ 1,903 |
Stock-Based Compensation (Det41
Stock-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Jun. 06, 2017 | Mar. 31, 2017 | Jun. 30, 2015 | Sep. 30, 2017 |
Exercise price (in dollars per share) | ||||
Number of options granted | 2,504,000 | |||
Restricted Stock Units [Member] | ||||
Period of recognized compensation cost | 1 year 10 months 16 days | |||
Total non vested unrecognized compensation cost | $ 1,100 | |||
Certain Employees [Member] | ||||
Number of options granted | 2,464,150 | |||
Exercisable terms | 10 years | |||
Vesting period | 4 years | |||
Fair value of options | $ 2,222 | |||
Expected terms | 6 years 3 months | |||
Volatility rate | 48.00% | |||
Expected dividend rate | 0.00% | |||
Outside Attorney [Member] | ||||
Exercise price (in dollars per share) | $ 1.76 | |||
Share price (in dollars per share) | $ 0.49 | |||
Number of options granted | 40,000 | |||
Exercisable terms | 4 years | |||
Fair value of options | $ 19,640 | |||
Expected terms | 4 years | |||
Volatility rate | 48.00% | |||
Risk-free interest rate | 1.81% | |||
Expected dividend rate | 0.00% | |||
Minimum [Member] | Certain Employees [Member] | ||||
Exercise price (in dollars per share) | $ 1.13 | |||
Share price (in dollars per share) | $ 0.55 | |||
Risk-free interest rate | 1.92% | |||
Maximum [Member] | Certain Employees [Member] | ||||
Exercise price (in dollars per share) | $ 1.97 | |||
Share price (in dollars per share) | $ 0.96 | |||
Risk-free interest rate | 2.14% | |||
2011 Equity Incentive Plan [Member] | ||||
Aggregate exercisable intrinsic value | $ 0 | |||
Total unrecognized compensation cost of options | $ 5,700 | |||
Period of recognized compensation cost | 2 years 10 months 27 days | |||
Exercisable terms | 10 years | |||
Previously issued number of shares | 7,500,000 | |||
Number of shares issued | 9,500,000 | |||
2011 Equity Incentive Plan [Member] | Minimum [Member] | ||||
Vesting period | 4 years | |||
2011 Equity Incentive Plan [Member] | Maximum [Member] | ||||
Vesting period | 5 years | |||
2015 Employee Stock Purchase Plan [Member] | ||||
Previously issued number of shares | 250,000 | |||
Number of shares issued | 750,000 | |||
Employee Stock Purchase Plan [Member] | ||||
Description of plan | Under the ESPP, shares of the Company's common stock may be purchased at six-month intervals at 85% of the lower of the closing fair market value of the common stock (i) on the first trading day of the offering period or (ii) on the last trading day of the purchase period. An employee may purchase in any one calendar year shares of common stock having an aggregate fair market value of up to $25,000 determined as of the first trading day of the offering period. Additionally, a participating employee may not purchase more than 100,000 shares of common stock in any one offering period. | |||
Number of shares issued | 435,139 |