Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | MRI INTERVENTIONS, INC. | |
Entity Central Index Key | 0001285550 | |
Document Type | 10-Q | |
Trading Symbol | MRIC | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity's Reporting Status Current | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,067,207 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,491,670 | $ 3,101,133 |
Accounts receivable, net | 1,266,797 | 1,233,896 |
Inventory, net | 2,024,935 | 2,105,976 |
Operating lease rights of use, current portion | 98,668 | |
Prepaid expenses and other current assets | 199,576 | 213,684 |
Total current assets | 6,081,646 | 6,654,689 |
Property and equipment, net | 498,783 | 377,706 |
Software license inventory | 679,400 | 801,900 |
Operating lease rights of use | 355,176 | |
Other assets | 10,639 | 22,538 |
Total assets | 7,625,644 | 7,856,833 |
Current liabilities: | ||
Accounts payable | 502,986 | 500,929 |
Accrued compensation | 667,768 | 764,960 |
Operating lease liabilities, current portion | 104,127 | |
Other accrued liabilities | 319,654 | 390,838 |
Deferred revenue | 679,485 | 350,963 |
Total current liabilities | 2,274,020 | 2,007,690 |
Accrued interest | 892,125 | 857,500 |
Junior secured notes payable, net | ||
Operating lease liabilities | 367,061 | |
Total liabilities | 7,183,025 | 6,345,831 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued and outstanding at March 31, 2019 and December 31, 2018 | ||
Common stock, $0.01 par value; 200,000,000 shares authorized; 11,067,207 shares issued and outstanding at March 31, 2019; and 11,018,364 issued and outstanding at December 31, 2018 | 110,672 | 110,183 |
Additional paid-in capital | 108,752,502 | 108,600,405 |
Accumulated deficit | (108,420,555) | (107,199,586) |
Total stockholders' equity | 442,619 | 1,511,002 |
Total liabilities and stockholders' equity | 7,625,644 | 7,856,833 |
Junior Secured Notes Payable 2014 [Member] | ||
Current liabilities: | ||
Junior secured notes payable, net | 1,944,871 | 1,939,850 |
Junior Secured Notes Payable 2010 [Member] | ||
Current liabilities: | ||
Junior secured notes payable, net | $ 1,704,948 | $ 1,540,791 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Condensed Consolidated Balance Sheets Unaudited | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 25,000,000 | 25,000,000 |
Preferred stock, issued | ||
Preferred stock, outstanding | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 200,000,000 | 200,000,000 |
Common stock, issued | 11,067,207 | 11,018,364 |
Common stock, outstanding | 11,067,207 | 11,018,364 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 2,472,517 | $ 1,623,366 |
Cost of revenues | 886,481 | 588,967 |
Research and development costs | 584,540 | 546,328 |
Sales and marketing expenses | 1,040,712 | 962,214 |
General and administrative expenses | 933,033 | 952,951 |
Operating loss | (972,249) | (1,427,094) |
Other income (expense): | ||
Gain from change in fair value of derivative liabilities | 34,443 | |
Other income (expense), net | 5,629 | (794) |
Interest expense, net | (254,105) | (247,472) |
Net loss | $ (1,220,725) | $ (1,640,917) |
Net loss per share attributable to common stockholders: | ||
Basic and diluted (in dollars per share) | $ (0.11) | $ (0.15) |
Weighted average shares outstanding: | ||
Basic and diluted (in shares) | 11,044,125 | 10,741,618 |
Product Revenues [Member] | ||
Revenues: | ||
Total revenues | $ 2,163,953 | $ 1,538,598 |
Service and Other Revenues [Member] | ||
Revenues: | ||
Total revenues | $ 308,564 | $ 84,768 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balances at beginning at Dec. 31, 2017 | $ 106,937 | $ 106,757,920 | $ (101,036,117) | $ 5,828,740 |
Balances at beginning (in shares) at Dec. 31, 2017 | 10,693,851 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation | $ 93 | 273,964 | 274,057 | |
Share-based compensation (in shares) | 9,298 | |||
Under contractual arrangements | $ 250 | 77,250 | 77,500 | |
Under contractual arrangements (in shares) | 25,000 | |||
Warrant exercises | $ 978 | 209,028 | 210,006 | |
Warrant exercises (in shares) | 97,747 | |||
Net loss for the period | (1,640,917) | (1,640,917) | ||
Balances at ending at Mar. 31, 2018 | $ 108,258 | 107,318,162 | (102,677,034) | 4,749,386 |
Balance at ending (in shares) at Mar. 31, 2018 | 10,825,896 | |||
Balances at beginning at Dec. 31, 2018 | $ 110,183 | 108,600,405 | (107,199,586) | 1,511,002 |
Balances at beginning (in shares) at Dec. 31, 2018 | 11,018,364 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative adjustment for adoption of new accounting standard | (244) | (244) | ||
Share-based compensation | $ 285 | 152,301 | 152,586 | |
Share-based compensation (in shares) | 28,462 | |||
Warrant exercises | $ 204 | (204) | ||
Warrant exercises (in shares) | 20,381 | |||
Net loss for the period | (1,220,725) | (1,220,725) | ||
Balances at ending at Mar. 31, 2019 | $ 110,672 | $ 108,752,502 | $ (108,420,555) | $ 442,619 |
Balance at ending (in shares) at Mar. 31, 2019 | 11,067,207 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (1,220,725) | $ (1,640,917) |
Adjustments to reconcile net loss to net cash flows from operating activities: | ||
Depreciation | 34,640 | 31,623 |
Share-based compensation | 152,586 | 247,464 |
Expenses paid through the issuance of common stock | 77,500 | |
Gain from change in fair value of derivative liabilities | (34,443) | |
Amortization of debt issuance costs and original issue discounts | 169,179 | 136,429 |
Amortization of lease rights of use, net of accretion in lease liabilities | 25,630 | |
Increase (decrease) in cash resulting from changes in: | ||
Accounts receivable | (32,901) | 39,306 |
Inventory, net | 47,824 | (297,280) |
Prepaid expenses and other current assets | 14,108 | 39,556 |
Other assets | 11,899 | (19,475) |
Accounts payable and accrued expenses | (113,937) | (500,899) |
Lease liabilities | (26,289) | |
Deferred revenue | 328,523 | (39,546) |
Net cash flows from operating activities | (609,463) | (1,960,682) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (20,646) | |
Net cash flows from investing activities | (20,646) | |
Cash flows from financing activities: | ||
Proceeds from warrant exercises | 205,131 | |
Net cash flows from financing activities | 205,131 | |
Net change in cash and cash equivalents | (609,463) | (1,776,197) |
Cash and cash equivalents, beginning of period | 3,101,133 | 9,289,831 |
Cash and cash equivalents, end of period | 2,491,670 | 7,513,634 |
Cash paid for: | ||
Income taxes | ||
Interest | 291,032 | 146,611 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||
Operating lease right-of-use assets | 480,395 | |
operating lease liabilities | 480,395 | |
Net book value from loan system | $ 155,717 | $ 131,201 |
Description of the Business and
Description of the Business and Liquidity | 3 Months Ended |
Mar. 31, 2019 | |
Description Of Business And Liquidity | |
Description of the Business and Liquidity | 1. Description of the Business and Liquidity MRI Interventions, Inc. (the “Company”) is a medical device company focused on the development and commercialization of technology that enables physicians to see inside the brain and heart using direct, intra-procedural magnetic resonance imaging (“MRI”) guidance while performing minimally invasive surgical procedures. The Company’s ClearPoint system, an integrated system comprised of reusable and disposable products, is designed to allow minimally invasive procedures in the brain to be performed in an MRI suite. The Company received 510(k) clearance from the U.S. Food and Drug Administration (“FDA”) in 2010 to market the ClearPoint system in the United States for general neurological interventional procedures. The Company’s ClearTrace system is a product candidate that is designed to allow catheter-based minimally invasive procedures in the heart to be performed in an MRI suite. Although still a product candidate, the Company has reduced its efforts to commercialize the ClearTrace system. Liquidity and Management’s Plans The Company has incurred net losses since its inception which has resulted in a cumulative deficit at March 31, 2019 of $108 million. Since inception, the Company has financed its operations principally from the sale of equity securities, the issuance of notes payable and license arrangements. The Company’s plans for the next twelve months reflect management’s anticipation of increases in revenues from sales of the ClearPoint System and related disposable products resulting from greater utilization at existing installed sites and the installation of the ClearPoint system at new sites. Management also anticipates that growth in operating expenses will be modest in comparison to the anticipated growth in revenues, with resulting decreases in loss from operations and in cash used in operations. There is no assurance, however, that the Company will be able to achieve its anticipated results, and even in the event such results are achieved, the Company expects to continue to consume cash in its operations over at least the next twelve months. As discussed in Note 9, in May 2019 the Company entered into Securities Purchase Agreement with certain accredited investors under which such investors have committed to purchase a minimum of approximately 1,743,068 shares of the Company’s common stock at $3.10 per share. The Company anticipates that the sales under the Securities Purchase Agreement will close on or about May 17, 2019. Accordingly, the Company expects to receive minimum proceeds of approximately $5.4 million, before deducting offering expenses aggregating approximately $100,000. In management’s opinion, such proceeds, when combined with the Company’s cash and cash equivalent balances at March 31, 2019, are sufficient to support the Company’s operations for at least the next twelve months. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on a basis consistent with the Company’s December 31, 2018 audited consolidated financial statements, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth therein. These condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) Securities and Exchange Commission (“SEC”) rules for interim financial information, and, therefore, omit certain information and footnote disclosures necessary to present such statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”). The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. These condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the SEC on April 1, 2019 (the “2018 Form 10-K”). The accompanying condensed consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated financial statements at that date but does not include all information and footnotes required by GAAP for a complete set of financial statements. The results of operations for the three months ended March 31, 2019 may not be indicative of the results to be expected for the entire year or any future periods. Inventory Inventory is carried at the lower of cost (first-in, first-out method) or net realizable value. Items in inventory relate predominantly to the Company’s ClearPoint system. Software license inventory related to ClearPoint systems undergoing on-site customer evaluation is included in inventory in the accompanying condensed consolidated balance sheets. All other software license inventory is classified as a non-current asset. The Company periodically reviews its inventory for obsolete items and provides a reserve upon identification of potential obsolete items. Revenue Recognition The Company’s revenues are comprised primarily of: (1) product revenues resulting from the sale of functional neurosurgical products, and drug delivery and biologic products; (2) product revenues resulting from the sale of ClearPoint capital equipment; (3) functional neurosurgery and related service revenues resulting from the performance of product line commercialization planning and execution for a third party; (4) clinical case support revenues in connection with customer-sponsored clinical trials; and (5) revenues resulting from the rental, service, installation, training and shipping related to ClearPoint capital equipment. The Company recognizes revenue when control of the Company’s products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Lines of Business; Timing of Revenue Recognition ● Functional neurosurgery product, and biologics and drug delivery systems product sales ● Capital equipment sales o Capital equipment sales preceded by evaluation periods o Capital equipment sales not preceded by evaluation periods: For both types of capital equipment sales described above, the Company’s determination of the point in time at which to recognize revenue represents that point at which the customer has legal title, physical possession, and the risks and rewards of ownership, and the Company has a present right to payment. ● Functional neurosurgery and related services: ● Biologics and drug delivery services: o Outsourced recruitment and/or designation of a clinical services liaison between Company and its customer: o Outsourced technical clinical support of cases performed pursuant to customer-sponsored clinical trials: o Other related services: ● Capital equipment-related services o Rental and equipment service: o Installation, training and shipping: The Company operates in one industry segment, and substantially all its sales are to U.S.-based customers. Payment terms under contracts with customers generally are in a range of 30-60 days after the customers’ receipt of the Company’s invoices. The Company provides a one-year warranty on its functional neurosurgery products, biologics and drug delivery systems products, and capital equipment products that are not otherwise covered by a third-party manufacturer’s warranty. The Company’s contracts with customers do not provide for a right of return other than for product defects. See Note 3 for additional information regarding revenue recognition. Net Loss Per Share The Company computes net loss per share using the weighted-average number of common shares outstanding during the period. Basic and diluted net loss per share are the same because the conversion, exercise or issuance of all potential common stock equivalents, which comprise the entire amount of the Company’s outstanding common stock options and warrants as described in Note 7, would be anti-dilutive. Concentration Risks and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company holds its cash and cash equivalents on deposit with financial institutions in the U.S. insured by the Federal Deposit Insurance Corporation. At March 31, 2019, the Company had no amounts in bank balances that were in excess of the insured limits. Information with respect to customers that accounted for sales in excess of 10% of total sales in the three-month periods ended March 31, 2019 and 2018 is as follows: Three Months Ended March 31, 2019 2018 Customer - 1 15% 13% Information with respect to accounts receivable from those customers who comprised more than 10% of accounts receivable at March 31, 2019 and December 31, 2018 is as follows: March 31, 2019 December 31, 2018 Customer – 1 10% 17% Customer – 2 10% 12% Prior to granting credit, the Company performs credit evaluations of its customers’ financial condition, and generally does not require collateral from its customers. The Company will provide an allowance for doubtful accounts when collections become doubtful. The allowance for doubtful accounts was $38,000 at each of March 31, 2019 and December 31, 2018. The Company is subject to risks common to emerging companies in the medical device industry, including, but not limited to: new technological innovations; acceptance and competitiveness of its products; dependence on key personnel; dependence on key suppliers; changes in general economic conditions and interest rates; protection of proprietary technology; compliance with changing government regulations; uncertainty of widespread market acceptance of products; access to credit for capital purchases by customers; and product liability claims. Certain components used in manufacturing have relatively few alternative sources of supply and establishing additional or replacement suppliers for such components cannot be accomplished quickly. The inability of any of these suppliers to fulfill the Company’s supply requirements may negatively impact future operating results. Adoption of New Accounting Standard – Leases Effective January 1, 2019, the Company adopted the provisions of Accounting Standards Update (“ASU”) 2016-02, “Leases,” which created a new Topic 842 within the Accounting Standards Codification. Topic 842 established the core principle that a lessee should recognize the assets, representing rights-of-use, and liabilities to make lease payments, that arise from leases. See Note 6 for additional information regarding leases. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Revenue by Service Line Three Months Ended March 31, 2019 2018 Products: Disposable products: Functional neurosurgery $ 1,604,645 $ 1,161,335 Biologics and drug delivery 284,910 198,465 Capital equipment 274,399 178,798 Total product revenue 2,163,953 1,538,598 Services: Capital equipment and other 211,202 84,768 Biologics and drug delivery 97,362 - Total service revenue 308,564 84,768 Total revenue $ 2,472,517 $ 1,623,366 Contract Balances ● Contract assets ● Contract liabilities – During the three months ended March 31, 2019, the Company recognized capital equipment-related service revenue of $69,749 which was previously included in deferred revenue in the accompanying condensed consolidated balance sheet at December 31, 2018. In connection with one customer contract, the Company bills the customer for certain product the customer ordered and is committed to purchase, but which is shipped at a future date. At March 31, 2019, such billings amounted to $212,500, which amount is included in each of accounts receivable and deferred revenue in the accompanying condensed consolidated balance sheet. Remaining Performance Obligations The Company’s contracts with customers, other than capital equipment-related service agreements discussed below, are predominantly of terms less than one year. Accordingly, the transaction price of remaining performance obligations related to such contracts at March 31, 2019 are not material. Revenue with respect to remaining performance obligations related to capital equipment-related service agreements with original terms in excess of one year amounted to $253,881 at March 31, 2019. The Company expects to recognize this revenue within the next three years. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. Inventory Inventory consists of the following as of: March 31, December 31, Raw materials and work in process $ 1,212,000 $ 1,219,753 Software licenses 210,000 122,500 Finished goods 602,935 763,723 Inventory, net, included in current assets 2,024,935 2,105,976 Software licenses – non-current 679,400 801,900 Total $ 2,704,335 $ 2,907,876 |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable | 5. Notes Payable Senior Secured Note Payable On September 25, 2018, the Company repaid in full all the outstanding debt, together with interest, under the senior secured note payable to Brainlab (the “Brainlab Note”). The Brainlab Note had a maturity date of December 31, 2018, and interest was payable quarterly in arrears at an annual rate of 5.5%. In connection with the repayment, the security agreement under which the Brainlab Note had been collateralized by all the assets of the Company was terminated. 2014 Junior Secured Notes Payable The indebtedness outstanding under the 2014 Junior Secured Notes Payable (the “2014 Secured Notes”) at each of March 31, 2019 and December 31, 2018 was $1.975 million. The 2014 Secured Notes bear interest at an annual rate of 12%, payable semi-annually in arrears, are collateralized by a first-priority security interest in all the Company’s assets and are due in September 2020. The carrying amount of the 2014 Secured Notes in the accompanying condensed consolidated balance sheets is presented net of a discount and unamortized issuance costs, as discussed further below. The discount related to the 2014 Secured Notes, arising from warrants issued to noteholders at issuance of the 2014 Secured Notes, is being amortized to interest expense over the contractual life of the notes using the effective interest method. The unamortized discount at March 31, 2019 and December 31, 2018 was $20,331 and $23,719, respectively. The deferred financing costs, arising from warrants issued to the placement agents at issuance of the 2014 Secured Notes, have an unamortized balance of $9,798 and $11,430 at March 31, 2019 and December 31, 2018, respectively, and are being amortized to interest expense over the contractual life of the notes using the effective interest method. 2010 Junior Secured Notes Payable The indebtedness outstanding under the 2010 Junior Secured Notes Payable (the “2010 Secured Notes”) at each of March 31, 2019 and December 31, 2018 was $3.0 million. The 2010 Secured Notes accrue interest at an annual rate of 3.5% and are collateralized by a security interest in all the Company’s assets, which security interest is junior and subordinate to the security interest that collateralizes the 2014 Secured Notes. All outstanding principal and interest on the 2010 Secured Notes will be due and payable in a single payment upon maturity in November 2020. The carrying amount of the 2010 Secured Notes in the accompanying condensed consolidated balance sheets is presented net of a discount arising from shares issued to the noteholders at issuance of the 2010 Secured Notes. The unamortized discount at March 31, 2019 and December 31, 2018 was $1,295,052 and $1,459,209, respectively. This discount is being amortized to interest expense over the term of the notes using the effective interest method. At each of March 31, 2019 and December 31, 2018, the Company’s Chairman and one of the Company’s officers held 2010 Secured Notes they purchased at the date of original issuance having an aggregate principal balance of $197,000. Scheduled Notes Payable Maturities Scheduled principal payments as of March 31, 2019 with respect to notes payable are summarized as follows: Years ending December 31, 2019 – 2020 $ 4,975,000 Total scheduled principal payments 4,975,000 Less: Unamortized discounts and deferred financing costs (1,325,181 ) Total $ 3,649,819 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 6. Leases The Company leases office space in Irvine, California that houses its headquarters and manufacturing facility under a non-cancellable operating lease. The lease term commenced on October 1, 2018 and expires in September 2023. The Company has the option to renew the lease for two additional periods of five years each. The Company also leases office space in Mississauga, Ontario, Canada for its software development personnel. The lease term commenced on August 1, 2018, expires in July 2019 and automatically renews for successive one-year periods at the Company’s option. Both office leases are classified as operating leases in conformity with the provisions of Topic 842. Aggregated information regarding the office leases as of and for the three months ended March 31, 2019 is as follows: Lease cost (included in general and administrative expense) $ 27,468 Weighted-average remaining lease term (months) 53.14 Weighted-average discount rate 6.7 % The assumptions used in determining the foregoing information are as follows: ● Lease term – Topic 842 provides that the lease term consists of: (a) the noncancelable period of the Irvine and Mississauga office leases; and (b) the period covered by the Company option to extend each office lease for which the Company is reasonably certain to do so. Based on the foregoing, management determined the lease term to extend to September 2023 for the Irvine office lease, and to July 2020 for the Mississauga office lease. ● Discount rate – Topic 842 provides that the discount rate is the rate implicit in the lease unless that rate cannot be determined, in which case the lessee’s incremental borrowing rate shall be used. Because neither the rate implicit in the lease nor the Company’s incremental borrowing rate were determinable, discount rates were obtained with reference to published U.S. High Yield CCC corporate bond rates at the inception dates of each of the leases, which, with respect to the Irvine office lease was 6.7%, and with respect to the Mississauga office lease was 6.9%. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' equity: | |
Stockholders' Equity | 7. Stockholders’ Equity Issuance of Common Stock in Lieu of Cash Payments Under the terms of the Amended and Restated Non-Employee Director Compensation Plan, each non-employee member of the Company’s Board of Directors may elect to receive all or part of his or her director fees in shares of the Company’s common stock. Director fees, whether paid in cash or in shares of common stock, are payable quarterly on the last day of each fiscal quarter. The number of shares of common stock issued to directors is determined by dividing the product of: (i)(a) the fees otherwise payable to each director in cash, times (b) the percentage of fees the director elected to receive in shares of common stock, by (ii) the volume weighted average price per share of common stock over the last five trading days of the quarter. During the three months ended March 31, 2019 and 2018, 8,898 and 9,298 shares, respectively were issued to directors as payment for director fees in lieu of cash. Stock Incentive Plans The Company has various share-based compensation plans and share-based compensatory contracts (collectively, the “Plans”) under which it has granted share-based awards, such as stock grants, and incentive and non-qualified stock options, to employees, directors, consultants and advisors. Awards may be subject to a vesting schedule as set forth in individual award agreements. Certain of the Plans also have provided for cash-based performance bonus awards. Since June 2015, the Company has granted share-based awards under the MRI Interventions, Inc. Amended and Restated 2013 Incentive Compensation Plan (the “2013 Plan”). Under the 2013 Plan, a total of 1,956,250 shares of the Company’s common stock are reserved for issuance. Of this amount, stock grants of 216,375 shares have been awarded and option grants, net of options terminated, expired or forfeited, of 903,820 shares were outstanding as of March 31, 2019. Accordingly, 836,055 shares remained available for grants under the 2013 Plan as of that date. Stock option activity under all of the Company’s Plans during the three months ended March 31, 2019 is summarized below: Shares Weighted - Exercise Outstanding at January 1, 2019 1,386,396 $ 11.09 Granted - - Expired / forfeited (12 ) 385.60 Outstanding at March 31, 2019 1,386,384 $ 11.09 As of March 31, 2019, there was unrecognized compensation expense of $559,599 related to outstanding stock options, which is expected to be recognized over a weighted average period of 1.65 years. Warrants Warrants have generally been issued for terms of up to five years. Common stock warrant activity for the three months ended March 31, 2019 was as follows: Shares Weighted - Exercise Outstanding at January 1, 2019 8,676,481 $ 4.17 Issued - - Exercised (69,212 ) 2.20 Expired / Terminated (29,754 ) 41.55 Outstanding at March 31, 2019 8,577,515 $ 4.07 |
Derivative Liabilities
Derivative Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liabilities | 8. Derivative Liabilities Derivative liabilities at March 31, 2018 arose from an amendment the Company entered into with Brainlab, with respect to the Brainlab Note and related warrants (the “Brainlab warrants”), the provisions of which created: (a) a conversion feature allowing for $500,000 the principal balance of the Brainlab Note to be converted in a Qualified Public Offering, as defined in the amendment, at a public offering price that may be less than market value per share of the Company’s common stock; and (b) down round strike price protection with respect to Brainlab warrants. The conversion feature and the Brainlab warrants described herein terminated unexercised pursuant to the Company’s September 2018 repayment of the Brainlab Note as discussed in Note 5. Accordingly, the Company had no derivative liabilities at December 31, 2018. The fair values and the changes in fair values of derivative liabilities during the three months ended March 31, 2018 are as follows: Balance, January 1, 2018 $ 95,786 Reduction from warrant exercise (31,468 ) Gain on change in fair value for the period (34,443 ) Balance, March 31, 2018 $ 29,875 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 9. Subsequent Event On May 9, 2019, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain accredited investors (collectively, the “Investors”) for the private placement of up to 2,600,000 shares of the Company’s common stock at $3.10 per share (the “Financing Transaction”). The Investors have committed to purchase approximately 1,743,068 shares with the remaining shares reserved for, and subject to, the exercise of participation rights held by investors in the Company’s private offering of equity units in May 2017 (the “2017 Investors”). There can be no assurances that the 2017 Investors will exercise their participation rights, in full or at all. The sale of securities under the Purchase Agreement is subject to certain customary closing conditions, and the Company anticipates that the sales under the Purchase Agreement will close on or about May 17, 2019. The Purchase Agreement also contains representations and warranties by the Company and the Investors and covenants of the Company and the Investors (including indemnification from the Company in the event of breaches of its representations and warranties), certain information rights and other rights, obligations and restrictions, which the Company believes are customary for transactions of this type. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on a basis consistent with the Company’s December 31, 2018 audited consolidated financial statements, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth therein. These condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) Securities and Exchange Commission (“SEC”) rules for interim financial information, and, therefore, omit certain information and footnote disclosures necessary to present such statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”). The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. These condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the SEC on April 1, 2019 (the “2018 Form 10-K”). The accompanying condensed consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated financial statements at that date but does not include all information and footnotes required by GAAP for a complete set of financial statements. The results of operations for the three months ended March 31, 2019 may not be indicative of the results to be expected for the entire year or any future periods. |
Inventory | Inventory Inventory is carried at the lower of cost (first-in, first-out method) or net realizable value. Items in inventory relate predominantly to the Company’s ClearPoint system. Software license inventory related to ClearPoint systems undergoing on-site customer evaluation is included in inventory in the accompanying condensed consolidated balance sheets. All other software license inventory is classified as a non-current asset. The Company periodically reviews its inventory for obsolete items and provides a reserve upon identification of potential obsolete items. |
Revenue Recognition | Revenue Recognition The Company’s revenues are comprised primarily of: (1) product revenues resulting from the sale of functional neurosurgical products, and drug delivery and biologic products; (2) product revenues resulting from the sale of ClearPoint capital equipment; (3) functional neurosurgery and related service revenues resulting from the performance of product line commercialization planning and execution for a third party; (4) clinical case support revenues in connection with customer-sponsored clinical trials; and (5) revenues resulting from the rental, service, installation, training and shipping related to ClearPoint capital equipment. The Company recognizes revenue when control of the Company’s products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Lines of Business; Timing of Revenue Recognition ● Functional neurosurgery product, and biologics and drug delivery systems product sales ● Capital equipment sales o Capital equipment sales preceded by evaluation periods o Capital equipment sales not preceded by evaluation periods: For both types of capital equipment sales described above, the Company’s determination of the point in time at which to recognize revenue represents that point at which the customer has legal title, physical possession, and the risks and rewards of ownership, and the Company has a present right to payment. ● Functional neurosurgery and related services: ● Biologics and drug delivery services: o Outsourced recruitment and/or designation of a clinical services liaison between Company and its customer: o Outsourced technical clinical support of cases performed pursuant to customer-sponsored clinical trials: o Other related services: ● Capital equipment-related services o Rental and equipment service: o Installation, training and shipping: The Company operates in one industry segment, and substantially all its sales are to U.S.-based customers. Payment terms under contracts with customers generally are in a range of 30-60 days after the customers’ receipt of the Company’s invoices. The Company provides a one-year warranty on its functional neurosurgery products, biologics and drug delivery systems products, and capital equipment products that are not otherwise covered by a third-party manufacturer’s warranty. The Company’s contracts with customers do not provide for a right of return other than for product defects. See Note 3 for additional information regarding revenue recognition. |
Net Loss Per Share | Net Loss Per Share The Company computes net loss per share using the weighted-average number of common shares outstanding during the period. Basic and diluted net loss per share are the same because the conversion, exercise or issuance of all potential common stock equivalents, which comprise the entire amount of the Company’s outstanding common stock options and warrants as described in Note 7, would be anti-dilutive. |
Concentration Risks and Other Risks and Uncertainties | Concentration Risks and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company holds its cash and cash equivalents on deposit with financial institutions in the U.S. insured by the Federal Deposit Insurance Corporation. At March 31, 2019, the Company had no amounts in bank balances that were in excess of the insured limits. Information with respect to customers that accounted for sales in excess of 10% of total sales in the three-month periods ended March 31, 2019 and 2018 is as follows: Three Months Ended March 31, 2019 2018 Customer - 1 15% 13% Information with respect to accounts receivable from those customers who comprised more than 10% of accounts receivable at March 31, 2019 and December 31, 2018 is as follows: March 31, 2019 December 31, 2018 Customer – 1 10% 17% Customer – 2 10% 12% Prior to granting credit, the Company performs credit evaluations of its customers’ financial condition, and generally does not require collateral from its customers. The Company will provide an allowance for doubtful accounts when collections become doubtful. The allowance for doubtful accounts was $38,000 at each of March 31, 2019 and December 31, 2018. The Company is subject to risks common to emerging companies in the medical device industry, including, but not limited to: new technological innovations; acceptance and competitiveness of its products; dependence on key personnel; dependence on key suppliers; changes in general economic conditions and interest rates; protection of proprietary technology; compliance with changing government regulations; uncertainty of widespread market acceptance of products; access to credit for capital purchases by customers; and product liability claims. Certain components used in manufacturing have relatively few alternative sources of supply and establishing additional or replacement suppliers for such components cannot be accomplished quickly. The inability of any of these suppliers to fulfill the Company’s supply requirements may negatively impact future operating results. |
Adoption of New Accounting Standard - Leases | Adoption of New Accounting Standard – Leases Effective January 1, 2019, the Company adopted the provisions of Accounting Standards Update (“ASU”) 2016-02, “Leases,” which created a new Topic 842 within the Accounting Standards Codification. Topic 842 established the core principle that a lessee should recognize the assets, representing rights-of-use, and liabilities to make lease payments, that arise from leases. See Note 6 for additional information regarding leases. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of concentration of risk | Information with respect to customers that accounted for sales in excess of 10% of total sales in the three-month periods ended March 31, 2019 and 2018 is as follows: Three Months Ended March 31, 2019 2018 Customer - 1 15% 13% Information with respect to accounts receivable from those customers who comprised more than 10% of accounts receivable at March 31, 2019 and December 31, 2018 is as follows: March 31, 2019 December 31, 2018 Customer – 1 10% 17% Customer – 2 10% 12% |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of revenue recognition | Revenue by Service Line Three Months Ended March 31, 2019 2018 Products: Disposable products: Functional neurosurgery $ 1,604,645 $ 1,161,335 Biologics and drug delivery 284,910 198,465 Capital equipment 274,399 178,798 Total product revenue 2,163,953 1,538,598 Services: Capital equipment and other 211,202 84,768 Biologics and drug delivery 97,362 - Total service revenue 308,564 84,768 Total revenue $ 2,472,517 $ 1,623,366 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventory consists of the following as of: March 31, December 31, Raw materials and work in process $ 1,212,000 $ 1,219,753 Software licenses 210,000 122,500 Finished goods 602,935 763,723 Inventory, net, included in current assets 2,024,935 2,105,976 Software licenses – non-current 679,400 801,900 Total $ 2,704,335 $ 2,907,876 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable maturities | Scheduled principal payments as of March 31, 2019 with respect to notes payable are summarized as follows: Years ending December 31, 2019 – 2020 $ 4,975,000 Total scheduled principal payments 4,975,000 Less: Unamortized discounts and deferred financing costs (1,325,181 ) Total $ 3,649,819 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of operating leases | Aggregated information regarding the office leases as of and for the three months ended March 31, 2019 is as follows: Lease cost (included in general and administrative expense) $ 27,468 Weighted-average remaining lease term (months) 53.14 Weighted-average discount rate 6.7 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' equity: | |
Schedule of stock options issued by the Company | Stock option activity under all of the Company’s Plans during the three months ended March 31, 2019 is summarized below: Shares Weighted - Exercise Outstanding at January 1, 2019 1,386,396 $ 11.09 Granted - - Expired / forfeited (12 ) 385.60 Outstanding at March 31, 2019 1,386,384 $ 11.09 |
Schedule of common stock warrant activity | Warrants have generally been issued for terms of up to five years. Common stock warrant activity for the three months ended March 31, 2019 was as follows: Shares Weighted - Exercise Outstanding at January 1, 2019 8,676,481 $ 4.17 Issued - - Exercised (69,212 ) 2.20 Expired / Terminated (29,754 ) 41.55 Outstanding at March 31, 2019 8,577,515 $ 4.07 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values and the changes in fair values of derivative liabilities | The fair values and the changes in fair values of derivative liabilities during the three months ended March 31, 2018 are as follows: Balance, January 1, 2018 $ 95,786 Reduction from warrant exercise (31,468 ) Gain on change in fair value for the period (34,443 ) Balance, March 31, 2018 $ 29,875 |
Description of the Business a_2
Description of the Business and Liquidity (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended |
May 31, 2017 | Mar. 31, 2019 | |
Other offering expenses | $ 100,000 | |
Minimum proceeds | $ 5,400,000 | |
Securities Purchase Agreement [Member] | ||
Issue price (in dolllars per share) | $ 3.10 | |
Number of shares issued | 1,743,068 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Accounts Receivable [Member] | Customer - 1 [Member] | |||
Concentration risk, percentage | 10.00% | 17.00% | |
Accounts Receivable [Member] | Customer - 2 [Member] | |||
Concentration risk, percentage | 10.00% | 12.00% | |
Sales [Member] | Customer - 1 [Member] | |||
Concentration risk, percentage | 15.00% | 13.00% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | $ 38,000 | $ 38,000 |
Payment terms under contracts with customers | A range of 30-60 days after the customers’ receipt of the Company’s invoices. | |
Minimum [Member] | ||
Term of service agreements (in years) | 1 year | |
Maximum [Member] | ||
Term of service agreements (in years) | 3 years |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total revenues | $ 2,472,517 | $ 1,623,366 |
Functional Neurology [Member] | ||
Total revenues | 1,604,645 | 1,161,335 |
Biologics And Drug Delivery [Member] | ||
Total revenues | 284,910 | 198,465 |
Capital Equipment [Member] | ||
Total revenues | 274,399 | 178,798 |
Capital Equipment and Other [Member] | ||
Total revenues | 211,202 | 84,768 |
Service and Other Revenues [Member] | ||
Total revenues | 308,564 | 84,768 |
Product Revenues [Member] | ||
Total revenues | 2,163,953 | 1,538,598 |
Biologics And Drug Delivery [Member] | ||
Total revenues | $ 97,362 |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total revenues | $ 2,472,517 | $ 1,623,366 |
Accounts receivable and deferred revenue | 212,500 | |
Remaining Performance Obligations Capital Equipment-Related Service Revenue Member] | ||
Total revenues | 253,881 | |
Capital Equipment-Related Service Revenue Member] | ||
Total revenues | $ 69,749 |
Inventory (Details)
Inventory (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 1,212,000 | $ 1,219,753 |
Software licenses | 210,000 | 122,500 |
Finished goods | 602,935 | 763,723 |
Inventory, net, included in current assets | 2,024,935 | 2,105,976 |
Software licenses - non-current | 679,400 | 801,900 |
Total | $ 2,704,335 | $ 2,907,876 |
Notes Payable (Details)
Notes Payable (Details) | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2019 | |
2020 | 4,975,000 |
Total scheduled principal payments | 4,975,000 |
Less: Unamortized discounts and deferred financing costs | (1,325,181) |
Total | $ 3,649,819 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Sep. 25, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Unamortized discount | $ 1,325,181 | ||
Other offering expenses | 100,000 | ||
12% Junior Secured Notes Payable 2014 [Member] | |||
Debt Instrument [Line Items] | |||
Debt face amount | 1,975,000 | $ 1,975,000 | |
Unamortized discount | $ 20,331 | 23,719 | |
Private Placement [Member] | 12% Junior Secured Notes Payable 2014 [Member] | |||
Debt Instrument [Line Items] | |||
Debt frequency of periodic payment | Semi-annually | ||
Private Placement [Member] | 12% Junior Secured Notes Payable 2014 [Member] | Placement Agents [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized discount | $ 9,798 | 11,430 | |
Brainlab Senior Secured Note Payable [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.50% | ||
Maturity date | Dec. 31, 2018 | ||
2010 Junior Secured Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.50% | ||
Debt face amount | $ 3,000,000 | 3,000,000 | |
Maturity date | Nov. 30, 2020 | ||
Description of collateral terms | Collateralized by a first-priority security interest in all the Company’s assets | ||
Unamortized discount | $ 1,295,052 | 1,459,209 | |
2010 Junior Secured Notes Payable [Member] | Private Placement [Member] | |||
Debt Instrument [Line Items] | |||
Description of collateral terms | Collateralized by a security interest in all the Company’s assets, which security interest is junior and subordinate to the security interest that collateralizes the 2014 Secured Notes. | ||
Description of payment terms | Interest on the 2010 Secured Notes will be due and payable in a single payment upon maturity | ||
2010 Junior Secured Notes Payable [Member] | Chairman and Officer [Member] | |||
Debt Instrument [Line Items] | |||
Debt face amount | $ 197,000 | $ 197,000 | |
Maturity date | Sep. 30, 2020 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Lease cost (included in general and administrative expense) | $ 27,468 |
Weighted-average remaining lease term (months) | 53 months 4 days |
Weighted-average discount rate | 6.70% |
Leases (Details Narrative)
Leases (Details Narrative) | 3 Months Ended |
Mar. 31, 2019 | |
Description of lease discount rate | Discount rate – Topic 842 provides that the discount rate is the rate implicit in the lease unless that rate cannot be determined, in which case the lessee’s incremental borrowing rate shall be used. Because neither the rate implicit in the lease nor the Company’s incremental borrowing rate were determinable, discount rates were obtained with reference to published U.S. High Yield CCC corporate bond rates at the inception dates of each of the leases, which, with respect to the Irvine office lease was 6.7%, and with respect to the Mississauga office lease was 6.9%. |
Office [Member] | Irvine, California [Member] | |
Commenced date | Oct. 1, 2018 |
Expire date | Sep. 30, 2023 |
Lease term | 5 years |
Lease renewal term | 5 years |
Discount rate | 6.70% |
Office [Member] | Mississauga, Ontario [Member] | |
Commenced date | Aug. 1, 2018 |
Expire date | Jul. 30, 2019 |
Lease term | 1 year |
Lease renewal term | 1 year |
Discount rate | 6.90% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Balance at beginning | shares | 1,386,396 |
Granted | shares | |
Expired / forfeited | shares | (12) |
Balance at ending | shares | 1,386,384 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Balance at beginning | $ / shares | $ 11.09 |
Granted | $ / shares | |
Expired / forfeited | $ / shares | 385.60 |
Balance at ending | $ / shares | $ 11.09 |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) - Common Stock Warrants [Member] | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Balance at beginning | shares | 8,676,481 |
Issued | shares | |
Exercised | shares | (69,212) |
Expired / Terminated | shares | (29,754) |
Balance at ending | shares | 8,577,515 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Balance at beginning | $ / shares | $ 4.17 |
Issued | $ / shares | |
Exercised | $ / shares | 2.20 |
Expired / Terminated | $ / shares | 41.55 |
Balance at ending | $ / shares | $ 4.07 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Number of awards outstanding | 1,386,384 | 1,386,396 | |
Number of awards granted | |||
Amended and Restated 2013 Incentive Compensation Plan [Member] | |||
Common stock reserved for issuance | 1,956,250 | ||
Number of share available for grant | 836,055 | ||
Number of awards outstanding | 903,820 | ||
Unrecognized compensation expense | $ 559,599 | ||
Director [Member] | |||
Number of awards granted | 216,375 | ||
Number of shares issued for services | 8,898 | 9,298 | |
Weighted average period | 1 year 7 months 24 days |
Derivative Liabilities (Details
Derivative Liabilities (Details) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Derivative Instruments and Hedges, Liabilities [Roll Forward] | |
Balance, beginning of period | $ 95,786 |
Reduction from warrant exercise | (31,468) |
Gain on change in fair value for the period | (34,443) |
Balance, end of period | $ 29,875 |
Derivative Liabilities (Detai_2
Derivative Liabilities (Details Narrative) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Brainlab Senior Secured Note Payable [Member] | Warrant [Member] | |
Amount of conversion feature | $ 500,000 |
Subsequent Event (Details Narra
Subsequent Event (Details Narrative) - Subsequent Event [Member] - Securities Purchase Agreement [Member] - Private Placement [Member] | May 09, 2019$ / sharesshares |
Investors [Member] | |
Subsequent Event [Line Items] | |
Number of share issued | 2,600,000 |
Share price (in dollars per share) | $ / shares | $ 3.10 |
Number of share committed to purchase | |
Number of share reserved | |
2017 Investors [Member] | |
Subsequent Event [Line Items] | |
Number of share issued | 1,743,068 |