Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | Stereotaxis, Inc. | |
Entity Central Index Key | 1,289,340 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 59,008,483 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 11,991,731 | $ 3,686,302 |
Accounts receivable, net of allowance of $297,409 and $361,350 in 2018 and 2017, respectively | 4,793,396 | 4,287,255 |
Inventories, net | 1,545,393 | 1,146,971 |
Prepaid expenses and other current assets | 883,756 | 750,085 |
Total current assets | 19,214,276 | 9,870,613 |
Property and equipment, net | 366,447 | 592,688 |
Intangible assets, net | 126,476 | 159,470 |
Other assets | 262,037 | 44,432 |
Total assets | 19,969,236 | 10,667,203 |
Current liabilities: | ||
Accounts payable | 1,353,215 | 1,654,101 |
Accrued liabilities | 2,958,873 | 3,195,247 |
Deferred revenue | 6,910,210 | 5,702,769 |
Warrants | 19,574,977 | |
Total current liabilities | 11,222,298 | 30,127,094 |
Long-term deferred revenue | 523,646 | 611,863 |
Other liabilities | 534,413 | 535,369 |
Total liabilities | 12,280,357 | 31,274,326 |
Convertible Preferred stock: | ||
Convertible Preferred stock, par value $0.001; 10,000,000 shares authorized, 23,900 shares outstanding at 2018 and 2017 | 5,960,475 | 5,960,475 |
Stockholders' equity (deficit): | ||
Common stock, par value $0.001; 300,000,000 shares authorized, 58,933,384 and 22,805,731 shares issued at 2018 and 2017, respectively | 58,933 | 22,806 |
Additional paid in capital | 477,910,692 | 450,748,403 |
Treasury stock, 4,015 shares at 2018 and 2017 | (205,999) | (205,999) |
Accumulated deficit | (476,035,222) | (477,132,808) |
Total stockholders' equity (deficit) | 1,728,404 | (26,567,598) |
Total liabilities and stockholders' equity (deficit) | $ 19,969,236 | $ 10,667,203 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 297,409 | $ 361,350 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 23,900 | 23,900 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 58,933,384 | 22,805,731 |
Treasury stock, shares | 4,015 | 4,015 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Systems | $ 310,751 | $ 1,828,439 | $ 328,026 | $ 2,047,334 |
Disposables, service and accessories | 7,240,650 | 6,638,587 | 14,195,008 | 13,397,364 |
Total revenue | 7,551,401 | 8,467,026 | 14,523,034 | 15,444,698 |
Cost of revenue: | ||||
Systems | 457,509 | 920,517 | 661,111 | 1,140,961 |
Disposables, service and accessories | 931,541 | 1,281,729 | 1,993,286 | 2,317,911 |
Total cost of revenue | 1,389,050 | 2,202,246 | 2,654,397 | 3,458,872 |
Gross margin | 6,162,351 | 6,264,780 | 11,868,637 | 11,985,826 |
Operating expenses: | ||||
Research and development | 2,032,394 | 1,756,266 | 3,995,020 | 3,357,143 |
Sales and marketing | 3,457,416 | 3,618,615 | 7,092,413 | 7,400,064 |
General and administrative | 1,298,604 | 1,324,678 | 2,537,783 | 3,566,255 |
Total operating expenses | 6,788,414 | 6,699,559 | 13,625,216 | 14,323,462 |
Operating loss | (626,063) | (434,779) | (1,756,579) | (2,337,636) |
Other income | 300,255 | 2,590,361 | 3,429,563 | |
Interest expense (net) | (6,142) | (42,775) | (30,757) | (92,258) |
Net income (loss) | (632,205) | (177,299) | 803,025 | 999,669 |
Cumulative dividend on convertible preferred stock | (357,518) | (369,661) | (711,107) | (732,849) |
Net income attributable to convertible preferred stock | (42,936) | (167,539) | ||
Net income (loss) attributable to common stockholders | $ (989,723) | $ (546,960) | $ 48,982 | $ 99,281 |
Net income (loss) per share attributable to common stockholders: | ||||
Basic | $ (0.02) | $ (0.02) | $ 0 | $ 0 |
Diluted | $ (0.02) | $ (0.02) | $ 0 | $ 0 |
Weighted average number of common shares and equivalents: | ||||
Basic | 58,926,545 | 22,581,330 | 45,019,358 | 22,450,392 |
Diluted | 58,926,545 | 22,581,330 | 45,728,732 | 22,458,479 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 803,025 | $ 999,669 |
Adjustments to reconcile net income to cash used in operating activities: | ||
Depreciation | 281,656 | 277,402 |
Amortization of intangibles | 32,994 | 99,661 |
Amortization of deferred finance costs | 24,657 | 49,588 |
Share-based compensation | 320,356 | 412,678 |
Loss on asset disposal | 1,449 | 20,772 |
Adjustment of warrants | (2,590,361) | (3,429,563) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (506,141) | (210,757) |
Inventories | (398,422) | 396,988 |
Prepaid expenses and other current assets | (44,475) | 288,295 |
Other assets | (36,897) | (1,806) |
Accounts payable | (300,886) | (885,763) |
Accrued liabilities | (236,374) | (603,653) |
Deferred revenue | 1,119,224 | (794,922) |
Other liabilities | (956) | 907 |
Net cash used in operating activities | (1,531,151) | (3,380,504) |
Cash flows from investing activities | ||
Purchase of fixed assets | (56,864) | (4,297) |
Net cash used in investing activities | (56,864) | (4,297) |
Cash flows from financing activities | ||
Payments of deferred financing costs | (100,000) | |
Proceeds from issuance of stock, net of issuance costs | 28,747 | 18,872 |
Proceeds from warrant exercise | 9,864,697 | |
Net cash provided by (used in) financing activities | 9,893,444 | (81,128) |
Net increase (decrease) in cash and cash equivalents | 8,305,429 | (3,465,929) |
Cash and cash equivalents at beginning of period | 3,686,302 | 8,501,392 |
Cash and cash equivalents at end of period | $ 11,991,731 | $ 5,035,463 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business Stereotaxis designs, manufactures and markets the Epoch Epoch Niobe Niobe Odyssey Odyssey Vdrive Vdrive The Niobe Niobe In addition to the Niobe Odyssey Odyssey Cinema Odyssey Our Vdrive Vdrive Niobe Vdrive Vdrive Duo Vdrive Vdrive Duo We promote the full Epoch Epoch Epoch The core components of Stereotaxis systems, such as the Niobe Odyssey Cardiodrive, Vdrive Vdrive Duo V-CAS V-Loop V-Sono The V-CAS Deflect We have successfully integrated our Niobe |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements of Stereotaxis, Inc. have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all the disclosures required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, they include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. Operating results for the six month period ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 or for future operating periods. These interim financial statements and the related notes should be read in conjunction with the annual financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission (SEC) on March 20, 2018. Going Concern, Liquidity and Management’s Plan The Company believes the cash on hand at June 30, 2018 will be sufficient to meet its obligations as they become due in the ordinary course of business for at least 12 months following the date these financial statements are issued. The Company has sustained operating losses throughout its corporate history and expects that its 2018 expenses will exceed its 2018 gross margin. The Company expects to continue to incur operating losses and negative cash flows until revenues reach a level sufficient to support ongoing operations or expense reductions are in place. The Company’s liquidity needs will be largely determined by the success of clinical adoption within the installed base of Niobe Financial Instruments Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying value of such amounts reported at the applicable balance sheet dates approximates fair value. The Company measures certain financial assets and liabilities, including warrants, at fair value on a recurring basis. General accounting principles for fair value measurement established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). See Note 10 for additional details. Revenue and Costs of Revenue The Company adopted ASC 606, Revenue from Contracts with Customers, on January 1, 2018 using the modified retrospective method. Upon adoption of the new revenue guidance, the Company recorded a cumulative-effect reduction to accumulated deficit of $0.3 million on January 1, 2018 relating primarily to the deferral of previously expensed costs to obtain a contract. significant changes in the timing or method of revenue recognition for any of its material revenue streams. We generate revenue from initial capital sales of systems as well as recurring revenue from the sale of our proprietary disposable devices, from royalties paid to the Company on the sale by Biosense Webster of co-developed catheters, and from other recurring revenue including ongoing license and service contracts. We account for a contract with a customer when there is a legally enforceable contract between the Company and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We record our revenue based on consideration specified in the contract with each customer, net of any taxes collected from customers that are remitted to government authorities. For contracts containing multiple products and services the Company accounts for individual products and services as separate performance obligations if they are distinct, which is if a product or service is separately identifiable from other items in the bundled package, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company recognizes revenues as the performance obligations are satisfied by transferring control of the product or service to a customer. For multiple-element arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling price considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services and market conditions. The Company regularly reviews standalone selling prices and updates these estimates as necessary. Systems: Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation and an implied obligation to provide software enhancements if and when available for one year following installation. Revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. Revenue from the implied obligation to deliver software enhancements if and when available is recognized ratably over the first year following installation of the system as the customer receives the right to software updates throughout the period and is included in Other Recurring Revenue. The Company’s system contracts generally do not provide a right of return. Systems are generally covered by a one-year assurance type warranty; warranty costs were not material for the periods presented. Revenue from system delivery and installation represented 2% and 13% of revenue for the six months ended June 30, 2018 and 2017, respectively. Disposables: Revenue from sales of disposable products is recognized when control is transferred to the customers, which generally occurs at the time of shipment, but can also occur at the time of delivery depending on the customer arrangement. Disposable products are covered by an assurance type warranty that provides for the return of defective products. Warranty costs were not material for the periods presented. Disposable revenue represented 34% and 33% of revenue for the six months ended June 30, 2018 and 2017, respectively. Royalty: The Company is entitled to royalty payments from Biosense Webster, payable quarterly based on net revenues from sales of the co-developed catheters. Royalty revenue from the co-developed catheters remained relatively unchanged at 10% of revenue for the six months ended June 30, 2018 and 2017. Other Recurring Revenue: Other recurring revenue includes revenue from software licenses, product maintenance plans, and other post warranty maintenance. Revenue from services and license fees is deferred and amortized over the service or license fee period, which is typically one year. Other recurring revenue represented 54% and 44% of revenue for the six months ended June 30, 2018 and 2017, respectively Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Systems $ 310,751 $ 1,828,439 $ 328,026 $ 2,047,334 Disposables, service and accessories 7,240,650 6,638,587 14,195,008 13,397,364 Total revenue $ 7,551,401 $ 8,467,026 $ 14,523,034 $ 15,444,698 Transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which the revenue has not yet been recognized. A significant portion of this amount relates to the Company’s systems contracts and obligations that will be recognized as revenue in future periods. These obligations are generally satisfied within two years after contract inception but may occasionally extend longer. Transaction price representing revenue to be earned on remaining performance obligations on system contracts was approximately $1.3 million as of June 30, 2018. Performance obligations arising from contracts for disposables, royalty and service are generally expected to be satisfied within one year after entering into the contract. The following information summarizes the Company’s contract assets and liabilities: June 30, 2018 December 31, 2017 Contract Assets - Unbilled Receivables $ 9,167 $ 2,917 Product shipped, revenue deferred 934,136 941,724 Deferred service and license fees 6,499,720 5,372,908 Total deferred revenue 7,433,856 6,314,632 Less: Long-term deferred revenue (523,646 ) (611,863 ) Total current deferred revenue $ 6,910,210 $ 5,702,769 The Company invoices its customers based on the billing schedules in its sales arrangements. Contract assets primarily represent the difference between the revenue that was earned but not billed on service contracts and revenue from system contracts that was recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Deferred revenue is primarily related to service contracts, for which the service fees are billed up-front, generally quarterly or annually, and for amounts billed in advance for system contracts for which some performance obligations remain outstanding. For service contracts, the associated deferred revenue is generally recognized ratably over the service period. For system contracts, the associated deferred revenue is recognized when the remaining performance obligations are satisfied. The Company did not have any impairment losses on its contract assets for the periods presented. Revenue recognized for the six months ended June 30, 2018 and 2017, that was included in the deferred revenue balance at the beginning of each reporting period was $4,152,694 and $5,504,863, respectively. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that sales incentive programs for the Company’s sales team meet the requirements to be capitalized as the Company expects to generate future economic benefits from the related revenue generating contracts after the initial capital sales transaction. The costs capitalized as contract acquisition costs included in prepaid expenses and other assets, in the Company’s balance sheet was $0.4 million as of June 30, 2018. The Company did not incur any impairment losses during any of the periods presented. Costs of systems revenue include direct product costs, installation labor and other costs, estimated warranty costs, and initial training and product maintenance costs. These costs are recorded at the time of sale. Costs of disposable revenue include direct product costs and estimated warranty costs and are recorded at the time of sale. Cost of revenue from services and license fees are recorded when incurred. Share-Based Compensation The Company accounts for its grants of stock options, stock appreciation rights, restricted shares, and restricted stock units and for its employee stock purchase plan in accordance with the provisions of general accounting principles for share-based payments. These accounting principles require the determination of the fair value of the share-based compensation at the grant date and the recognition of the related expense over the period in which the share-based compensation vests. The Company utilizes the Black-Scholes valuation model to determine the fair value of stock options and stock appreciation rights at the date of grant. The resulting compensation expense is recognized over the requisite service period, which is generally four years. Restricted shares granted to employees are valued at the fair market value at the date of grant. The Company amortizes the fair market value to expense over the service period. If the shares are subject to performance objectives, the resulting compensation expense is amortized over the anticipated vesting period and is subject to adjustment based on the actual achievement of objectives. Net Income (Loss) per Common Share (“EPS”) Basic net income (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the number of common shares outstanding during the period. In periods where there is net income, we apply the two-class method to calculate basic and diluted net income (loss) per share of common stock, as our Convertible Preferred Stock is a participating security. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. In periods where there is a net loss, the two-class method of computing earnings per share does not apply as our Convertible Preferred Stock does not contractually participate in our losses. We compute diluted net income (loss) per common share using net income (loss) as the “control number” in determining whether potential common shares are dilutive, after giving consideration to all potentially dilutive common shares, including stock options, warrants, unvested restricted stock units outstanding during the period and potential issuance of stock upon the conversion of our Convertible Preferred Stock issued and outstanding during the period, except where the effect of such securities would be antidilutive. The following table sets forth the computation of basic and diluted EPS: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Net income (loss) $ (632,205 ) $ (177,299 ) $ 803,025 $ 999,669 Cumulative dividend on convertible preferred stock (357,518 ) (369,661 ) (711,107 ) (732,849 ) Net income attributable to convertible preferred stockholders — — (42,936 ) (167,539 ) Net income (loss) attributable to common stockholders $ (989,723 ) $ (546,960 ) $ 48,982 $ 99,281 Shares used for basic EPS-weighted average shares 58,926,545 22,581,330 45,019,358 22,450,392 Restricted Stock Units — — 267,936 8,087 Warrants — — 441,438 — Weighted average number of common shares and equivalents: 58,926,545 22,581,330 45,728,732 22,458,479 Basic EPS $ (0.02 ) $ (0.02 ) $ 0.00 $ 0.00 Diluted EPS $ (0.02 ) $ (0.02 ) $ 0.00 $ 0.00 The following potential common shares were excluded from diluted EPS for the six months ended June 30, 2018 as they were antidilutive: 1,167,775 stock options and stock appreciation rights, 271,9 restricted stock units, and 1,853,239 warrants. The following potential common shares were excluded from diluted EPS for the six months ended June 30, 2017 as they were antidilutive: 645,885 stock options and stock appreciation rights, 6 restricted stock units, and 38, warrants. In addition, the Company did not include any portion of unearned restricted stock units, outstanding options, stock appreciation rights or warrants in the calculation of diluted loss per common share for the three months ended June 30, 2018 or the three months ended June 30, 2017 because all such securities are anti-dilutive for the period. The Company had no unearned restricted shares during either period. As of June 30, 2018, the Company had 1,167,775 shares of common stock issuable upon the exercise of outstanding options and stock appreciation rights at a weighted average exercise price of $2.85 per share, 2,294,677 shares of common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $2.06 per share, 40,631,511 shares of common stock issuable upon the conversion of Series A Convertible Preferred Stock and accumulated dividends, and 539,926 shares of unvested restricted share units. Reclassifications In 2018, we adjusted our operating expense categories to improve our alignment with common industry reporting practice, and as a result, certain amounts in prior periods have been reclassified to conform to the current period presentation. For the six months ended June 30, 2017, approximately $0.9 million of regulatory and clinical research expenses previously included in General and Administrative expense have been reclassified to Research and Development expense, and approximately $0.3 million of international training expense previously included in General and Administrative expense has been reclassified to Sales and Marketing expense. These reclassifications had no effect on reported income or losses. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (ASC 842),” which sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840 Leases. The standard is effective for interim and annual periods beginning after December 31, 2018 (January 1, 2019 for the Company), with early adoption permitted. The Company is in the process of evaluating the impact of this accounting standard update. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories consist of the following: June 30, 2018 December 31, 2017 Raw materials $ 2,480,765 $ 2,528,270 Work in process 353,800 4,836 Finished goods 2,967,617 2,515,637 Reserve for obsolescence (4,256,789 ) (3,901,772 ) Total inventory $ 1,545,393 $ 1,146,971 |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets | 4. Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: June 30, 2018 December 31, 2017 Prepaid expenses $ 337,491 $ 575,501 Prepaid commissions 371,046 - Deferred financing costs - 24,658 Deposits 437,256 194,358 Total prepaid expenses and other assets 1,145,793 794,517 Less: Noncurrent prepaid expenses and other assets (262,037 ) (44,432 ) Total current prepaid expenses and other assets $ 883,756 $ 750,085 Effective with the January 1, 2018 adoption of ASC 606, the Company determined that sales commissions paid in connection with multi-year service contracts met the requirements to be capitalized as the Company expects to generate future economic benefits from the related revenue generating contracts. Previously, sales commissions on multi-year service contracts were expensed as incurred. The Company is amortizing this asset over the economic life of the related contracts. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consist of the following: June 30, 2018 December 31, 2017 Equipment $ 6,640,694 $ 7,295,698 Leasehold improvements 2,592,338 2,592,339 9,233,032 9,888,037 Less: Accumulated depreciation (8,866,585 ) (9,295,349 ) Net property and equipment $ 366,447 $ 592,688 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets As of June 30, 2018, the Company had total intangible assets of $3,143,291. Accumulated amortization at June 30, 2018, was $3,016,815. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consist of the following: June 30, 2018 December 31, 2017 Accrued salaries, bonus, and benefits $ 1,467,050 $ 1,641,491 Accrued rent 255,850 441,417 Accrued licenses and maintenance fees 578,999 581,672 Accrued warranties 143,991 164,365 Accrued taxes 267,299 234,668 Accrued professional services 431,329 367,072 Other 348,768 299,931 Total accrued liabilities 3,493,286 3,730,616 Less: Long term accrued liabilities (534,413 ) (535,369 ) Total current accrued liabilities $ 2,958,873 $ 3,195,247 Our primary company facilities are located in St. Louis, Missouri where we currently lease approximately 52,000 square feet of office and 12,000 square feet of demonstration and assembly space. In the third quarter of 2013, the Company modified the existing lease agreement to terminate approximately 13,000 square feet of unimproved space. The costs associated with the termination were $515,138 and were accrued as a rent liability as of September 30, 2013. As of June 30, 2018, the remaining accrued costs associated with the termination were $47,728. In August 2016 the Company entered into an agreement to sublease approximately 11,000 square feet of office space immediately and an additional 16,000 square feet of office space beginning in January, 2017, with the term of the sublease ending on December 31, 2018. |
Long-Term Debt and Credit Facil
Long-Term Debt and Credit Facilities | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Credit Facilities | 8. Long-Term Debt and Credit Facilities The Company has had a working capital line of credit with its primary lender, Silicon Valley Bank, since 2004. The revolving line of credit is secured by substantially all of the Company’s assets. The maximum available under the line is $5.0 million subject to the value of collateralized assets. The Company is required under the revolving line of credit to maintain its primary operating account and the majority of its cash and investment balances in accounts with its primary lender. On April 26, 2018, the Company entered into a First Amendment to Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank to extend the maturity of the revolving line of credit to April 25, 2019. The maximum availability under the revolving line of credit remains at $5.0 million, and provides for an interest rate during a “streamline period” equal to the prime rate subject to a floor of 4.5%. A “streamline period” occurs when the Company has, for each consecutive day in the immediately preceding monthly period, maintained a liquidity ratio greater than 1.75:1.00, and continuing so long as the streamline period has been maintained. Upon the termination of a streamline period, the Company must maintain the streamline threshold each consecutive day for one fiscal quarter, prior to entering into a subsequent streamline period. During non-streamline periods, the interest rate is the prime rate plus 1.5%, subject to a floor of 4.5%. In addition, the amendment requires that the liquidity ratio shall at all times include not less than $1.5 million of the Borrower’s unrestricted cash and cash equivalents maintained at the Bank prior to giving effect to any advance. As of June 30, 2018, the Company had no outstanding balance under the revolving line of credit. Draws on the line of credit are made based on the borrowing capacity one week in arrears. As of June 30, 2018, the Company had a borrowing capacity of $3.1 million based on the Company’s collateralized assets. The Company’s total liquidity as of June 30, 2018, was $15.1 million which included cash and cash equivalents of $12.0 million. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Convertible Preferred Stock and Stockholders' Equity | 9. Convertible Preferred Stock and Stockholders’ Equity The holders of common stock are entitled to one vote for each share held and to receive dividends whenever funds are legally available and when declared by the Board of Directors subject to the rights of holders of all classes of stock having priority rights as dividends and the conditions of the revolving line of credit agreement. No dividends have been declared or paid as of June 30, 2018. Convertible Preferred Stock and Warrants In September 2016, the Company issued 24,000 shares of Series A Convertible Preferred Stock, par value $0.001 with a stated value of $1,000 per share which are convertible into shares of the Company’s common stock at an initial conversion rate of $0.65 per share and (ii) warrants to purchase an aggregate of 36,923,078 shares of common stock. The convertible preferred shares are entitled to vote on an as-converted basis with the common stock, subject to specified beneficial ownership issuance limitations. The convertible preferred shares bear dividends at a rate of six percent (6%) per annum, which are cumulative and accrue daily from the date of issuance on the $1,000 stated value. Such dividends will not be paid in cash except in connection with any liquidation, dissolution or winding up of the Company or any redemption of the convertible preferred shares. Each holder of convertible preferred shares has the right to require us to redeem such holder’s convertible preferred shares upon the occurrence of specified events, which include certain business combinations, the sale of all or substantially all of the Company’s assets, or the sale of more than 50% of the outstanding shares of the Company’s common stock. In addition, the Company has the right to redeem the convertible preferred shares in the event of a defined change of control. The convertible preferred shares rank senior to our common stock as to distributions and payments upon the liquidation, dissolution, and winding up of the Company. Since the convertible preferred shares are subject to conditions for redemption that are outside the Company’s control, the convertible preferred shares are presently reported in the mezzanine section of the balance sheet. The warrants issued in conjunction with the convertible preferred stock have an exercise price equal to $0.70 per share subject to adjustments as provided under the terms of the warrants. The warrants are exercisable through September 29, 2021, subject to specified beneficial ownership issuance limitations. Prior to their modification in February 2018, the warrants were puttable upon the occurrence of certain events outside of the Company’s control, and were classified as liabilities under ASC 480-10. The calculated fair value of the warrants was periodically re-measured with any changes in value recognized in “Other income (expense)” in the Statements of Operations. See Note 10 for additional details. The warrants were modified on February 28, 2018 to allow for a reduction in the exercise price from $0.70 per share to $0.28 per share for a period between March 1, 2018 and March 5, 2018. Additionally, the beneficial ownership limitation related to the warrants was modified and the right of holders to require the Company to redeem their SPA Warrants in exchange for cash in certain circumstances was eliminated. Following these modifications, the warrants were no longer subject to liability accounting and were reclassified to equity. During the restricted exercise period, Stereotaxis received exercise notices for 35,791,927 warrants and received an aggregate of $10.0 million in cash from the warrant exercise. As a result of these transactions, total stockholders’ equity increased by $27.0 million and common shares outstanding increased by 35,791,927 shares. Stock Award Plans The Company has various stock plans that permit the Company to provide incentives to employees and directors of the Company in the form of equity compensation. In July 2012, the Compensation Committee of the Board of Directors adopted the 2012 Stock Incentive Plan (the “Plan”) which was subsequently approved by the Company’s shareholders. This plan replaced the 2002 Stock Incentive Plan which expired on March 25, 2012. On June 5, 2013, June 10, 2014, May 24, 2016, and May 23, 2017, the shareholders approved amendments to the Plan, which were previously approved and adopted by the Compensation Committee of the Board of Directors of the Company. Under each of the amendments on June 5, 2013 and June 10, 2014, the number of shares authorized for issuance under the Plan was increased by one million shares. The amendment on May 24, 2016 increased the number of shares authorized for issuance under the Plan by 1.5 million shares, and the amendment on May 23, 2017 increased the number of shares authorized for issuance under the Plan by 4.0 million shares. At June 30, 2018, the Company had 4,646,197 remaining shares of the Company’s common stock to provide for current and future grants under its various equity plans. At June 30, 2018, the total compensation cost related to options, stock appreciation rights, and non-vested stock granted to employees under the Company’s stock award plans but not yet recognized was approximately $0.8 million. This cost will be amortized over a period of up to four years over the underlying estimated service periods and will be adjusted for subsequent changes in actual forfeitures and anticipated vesting periods. A summary of the option and stock appreciation rights activity for the six month period ended June 30, 2018 is as follows: Number of Options/SARs Range of Exercise Price Weighted Average Exercise Price per Share Outstanding, December 31, 2017 413,301 $0.62 - $54.90 $ 9.04 Granted 858,500 $0.74 - $0.83 $ 0.74 Exercised - $ - $ - Forfeited (104,026 ) $0.74 - $54.90 $ 10.02 Outstanding, June 30, 2018 1,167,775 $0.62 - $43.90 $ 2.85 A summary of the restricted stock unit activity for the six month period ended June 30, 2018 is as follows: Number of Restricted Stock Units Weighted Average Grant Date Fair Value per Unit Outstanding, December 31, 2017 680,363 $ 1.11 Granted 212,000 $ 0.84 Vested (293,912 ) $ 1.36 Forfeited (58,525 ) $ 1.12 Outstanding, June 30, 2018 539,926 $ 0.87 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents and warrants. General accounting principles for fair value measurement established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). The three levels of the fair value hierarchy are described below: Level 1: Values are based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Values are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or other model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Values are generated from model-based techniques that use significant assumptions not observable in the market. The following table sets forth the Company’s assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. As required by the Fair Value Measurements and Disclosures topic of the Accounting Standards Codification, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value Measurement Using Total Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities at June 30, 2018: Warrants issued August 2013 $ — $ — $ — $ — Warrants issued September 2016 — — — — Total liabilities at fair value: $ — $ — $ — $ — Liabilities at December 31, 2017: Warrants issued August 2013 5,746 — — 5,746 Warrants issued September 2016 19,569,231 — — 19,569,231 Total liabilities at fair value: $ 19,574,977 $ — $ — $ 19,574,977 Level 1 The Company does not have any financial assets or liabilities classified as Level 1. Level 2 The Company does not have any financial assets or liabilities classified as Level 2. Level 3 In conjunction with the Company’s August 2013 and September 2016 financing transactions, the Company issued warrants to purchase shares of the Company’s common stock. Due to the provisions included in the warrant agreements at the time of issuance, the warrants did not meet the exemptions for equity classification and as such, the Company accounted for these warrants as derivative instruments. The calculated fair value of the warrants issued in conjunction with the August 2013 financing transactions is classified as a liability and is periodically re-measured with any changes in value recognized in “Other income (expense)” in the Statements of Operations. As detailed in Note 9, the remaining warrants from the September 2016 transaction were modified on February 28, 2018 and reclassified to equity. The remaining warrants from the August 2013 transaction (Exchange Warrants) expire in November 2018 and were revalued as of June 30, 2018 using the following assumptions: 1) volatility of 71.73%; 2) risk-free interest rate of 2.11%; and 3) a closing stock price of $0.77. The significant unobservable input used in the fair value measurement of the Company’s warrants is volatility. Significant increases (decreases) in the volatility in isolation would result in significantly higher (lower) liability fair value measurements. The following table sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the six month period ended June 30, 2018: Warrants issued August 2013 Warrants issued September 2016 Total Liabilities Balance at beginning of period $ 5,746 $ 19,569,231 $ 19,574,977 Issues - - - Reclassifications - (16,984,616 ) (16,984,616 ) Settlements - - - Revaluation (5,746 ) (2,584,615 ) (2,590,361 ) Balance at end of period $ - $ - $ - The Company currently does not have derivative instruments to manage its exposure to currency fluctuations or other business risks. The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. All derivative financial instruments are recognized in the balance sheet at fair value. |
Product Warranty Provisions
Product Warranty Provisions | 6 Months Ended |
Jun. 30, 2018 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Provisions | 11. Product Warranty Provisions The Company’s standard policy is to warrant all Niobe Odyssey, Vdrive Accrued warranty, which is included in other accrued liabilities, consists of the following: June 30, 2018 December 31, 2017 Warranty accrual, beginning of the fiscal period $ 164,365 $ 222,845 Accrual adjustment for product warranty (4,153 ) 32,679 Payments made (16,221 ) (91,159 ) Warranty accrual, end of the fiscal period $ 143,991 $ 164,365 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies The Company at times becomes a party to claims in the ordinary course of business. Management believes that the ultimate resolution of pending or threatened proceedings will not have a material effect on the financial position, results of operations or liquidity of the Company. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events None. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements of Stereotaxis, Inc. have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all the disclosures required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, they include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. Operating results for the six month period ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 or for future operating periods. These interim financial statements and the related notes should be read in conjunction with the annual financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission (SEC) on March 20, 2018. |
Going Concern, Liquidity and Management's Plan | Going Concern, Liquidity and Management’s Plan The Company believes the cash on hand at June 30, 2018 will be sufficient to meet its obligations as they become due in the ordinary course of business for at least 12 months following the date these financial statements are issued. The Company has sustained operating losses throughout its corporate history and expects that its 2018 expenses will exceed its 2018 gross margin. The Company expects to continue to incur operating losses and negative cash flows until revenues reach a level sufficient to support ongoing operations or expense reductions are in place. The Company’s liquidity needs will be largely determined by the success of clinical adoption within the installed base of Niobe |
Financial Instruments | Financial Instruments Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying value of such amounts reported at the applicable balance sheet dates approximates fair value. The Company measures certain financial assets and liabilities, including warrants, at fair value on a recurring basis. General accounting principles for fair value measurement established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). See Note 10 for additional details. |
Revenue and Costs of Revenue | Revenue and Costs of Revenue The Company adopted ASC 606, Revenue from Contracts with Customers, on January 1, 2018 using the modified retrospective method. Upon adoption of the new revenue guidance, the Company recorded a cumulative-effect reduction to accumulated deficit of $0.3 million on January 1, 2018 relating primarily to the deferral of previously expensed costs to obtain a contract. significant changes in the timing or method of revenue recognition for any of its material revenue streams. We generate revenue from initial capital sales of systems as well as recurring revenue from the sale of our proprietary disposable devices, from royalties paid to the Company on the sale by Biosense Webster of co-developed catheters, and from other recurring revenue including ongoing license and service contracts. We account for a contract with a customer when there is a legally enforceable contract between the Company and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We record our revenue based on consideration specified in the contract with each customer, net of any taxes collected from customers that are remitted to government authorities. For contracts containing multiple products and services the Company accounts for individual products and services as separate performance obligations if they are distinct, which is if a product or service is separately identifiable from other items in the bundled package, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company recognizes revenues as the performance obligations are satisfied by transferring control of the product or service to a customer. For multiple-element arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling price considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services and market conditions. The Company regularly reviews standalone selling prices and updates these estimates as necessary. Systems: Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation and an implied obligation to provide software enhancements if and when available for one year following installation. Revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. Revenue from the implied obligation to deliver software enhancements if and when available is recognized ratably over the first year following installation of the system as the customer receives the right to software updates throughout the period and is included in Other Recurring Revenue. The Company’s system contracts generally do not provide a right of return. Systems are generally covered by a one-year assurance type warranty; warranty costs were not material for the periods presented. Revenue from system delivery and installation represented 2% and 13% of revenue for the six months ended June 30, 2018 and 2017, respectively. Disposables: Revenue from sales of disposable products is recognized when control is transferred to the customers, which generally occurs at the time of shipment, but can also occur at the time of delivery depending on the customer arrangement. Disposable products are covered by an assurance type warranty that provides for the return of defective products. Warranty costs were not material for the periods presented. Disposable revenue represented 34% and 33% of revenue for the six months ended June 30, 2018 and 2017, respectively. Royalty: The Company is entitled to royalty payments from Biosense Webster, payable quarterly based on net revenues from sales of the co-developed catheters. Royalty revenue from the co-developed catheters remained relatively unchanged at 10% of revenue for the six months ended June 30, 2018 and 2017. Other Recurring Revenue: Other recurring revenue includes revenue from software licenses, product maintenance plans, and other post warranty maintenance. Revenue from services and license fees is deferred and amortized over the service or license fee period, which is typically one year. Other recurring revenue represented 54% and 44% of revenue for the six months ended June 30, 2018 and 2017, respectively Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Systems $ 310,751 $ 1,828,439 $ 328,026 $ 2,047,334 Disposables, service and accessories 7,240,650 6,638,587 14,195,008 13,397,364 Total revenue $ 7,551,401 $ 8,467,026 $ 14,523,034 $ 15,444,698 Transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which the revenue has not yet been recognized. A significant portion of this amount relates to the Company’s systems contracts and obligations that will be recognized as revenue in future periods. These obligations are generally satisfied within two years after contract inception but may occasionally extend longer. Transaction price representing revenue to be earned on remaining performance obligations on system contracts was approximately $1.3 million as of June 30, 2018. Performance obligations arising from contracts for disposables, royalty and service are generally expected to be satisfied within one year after entering into the contract. The following information summarizes the Company’s contract assets and liabilities: June 30, 2018 December 31, 2017 Contract Assets - Unbilled Receivables $ 9,167 $ 2,917 Product shipped, revenue deferred 934,136 941,724 Deferred service and license fees 6,499,720 5,372,908 Total deferred revenue 7,433,856 6,314,632 Less: Long-term deferred revenue (523,646 ) (611,863 ) Total current deferred revenue $ 6,910,210 $ 5,702,769 The Company invoices its customers based on the billing schedules in its sales arrangements. Contract assets primarily represent the difference between the revenue that was earned but not billed on service contracts and revenue from system contracts that was recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Deferred revenue is primarily related to service contracts, for which the service fees are billed up-front, generally quarterly or annually, and for amounts billed in advance for system contracts for which some performance obligations remain outstanding. For service contracts, the associated deferred revenue is generally recognized ratably over the service period. For system contracts, the associated deferred revenue is recognized when the remaining performance obligations are satisfied. The Company did not have any impairment losses on its contract assets for the periods presented. Revenue recognized for the six months ended June 30, 2018 and 2017, that was included in the deferred revenue balance at the beginning of each reporting period was $4,152,694 and $5,504,863, respectively. |
Assets Recognized from the Cost to Obtain a Contract with a Customer | Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that sales incentive programs for the Company’s sales team meet the requirements to be capitalized as the Company expects to generate future economic benefits from the related revenue generating contracts after the initial capital sales transaction. The costs capitalized as contract acquisition costs included in prepaid expenses and other assets, in the Company’s balance sheet was $0.4 million as of June 30, 2018. The Company did not incur any impairment losses during any of the periods presented. Costs of systems revenue include direct product costs, installation labor and other costs, estimated warranty costs, and initial training and product maintenance costs. These costs are recorded at the time of sale. Costs of disposable revenue include direct product costs and estimated warranty costs and are recorded at the time of sale. Cost of revenue from services and license fees are recorded when incurred. |
Share-based Compensation | Share-Based Compensation The Company accounts for its grants of stock options, stock appreciation rights, restricted shares, and restricted stock units and for its employee stock purchase plan in accordance with the provisions of general accounting principles for share-based payments. These accounting principles require the determination of the fair value of the share-based compensation at the grant date and the recognition of the related expense over the period in which the share-based compensation vests. The Company utilizes the Black-Scholes valuation model to determine the fair value of stock options and stock appreciation rights at the date of grant. The resulting compensation expense is recognized over the requisite service period, which is generally four years. Restricted shares granted to employees are valued at the fair market value at the date of grant. The Company amortizes the fair market value to expense over the service period. If the shares are subject to performance objectives, the resulting compensation expense is amortized over the anticipated vesting period and is subject to adjustment based on the actual achievement of objectives. |
Net Earnings (Loss) Per Common Share ("EPS") | Net Income (Loss) per Common Share (“EPS”) Basic net income (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the number of common shares outstanding during the period. In periods where there is net income, we apply the two-class method to calculate basic and diluted net income (loss) per share of common stock, as our Convertible Preferred Stock is a participating security. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. In periods where there is a net loss, the two-class method of computing earnings per share does not apply as our Convertible Preferred Stock does not contractually participate in our losses. We compute diluted net income (loss) per common share using net income (loss) as the “control number” in determining whether potential common shares are dilutive, after giving consideration to all potentially dilutive common shares, including stock options, warrants, unvested restricted stock units outstanding during the period and potential issuance of stock upon the conversion of our Convertible Preferred Stock issued and outstanding during the period, except where the effect of such securities would be antidilutive. The following table sets forth the computation of basic and diluted EPS: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Net income (loss) $ (632,205 ) $ (177,299 ) $ 803,025 $ 999,669 Cumulative dividend on convertible preferred stock (357,518 ) (369,661 ) (711,107 ) (732,849 ) Net income attributable to convertible preferred stockholders — — (42,936 ) (167,539 ) Net income (loss) attributable to common stockholders $ (989,723 ) $ (546,960 ) $ 48,982 $ 99,281 Shares used for basic EPS-weighted average shares 58,926,545 22,581,330 45,019,358 22,450,392 Restricted Stock Units — — 267,936 8,087 Warrants — — 441,438 — Weighted average number of common shares and equivalents: 58,926,545 22,581,330 45,728,732 22,458,479 Basic EPS $ (0.02 ) $ (0.02 ) $ 0.00 $ 0.00 Diluted EPS $ (0.02 ) $ (0.02 ) $ 0.00 $ 0.00 The following potential common shares were excluded from diluted EPS for the six months ended June 30, 2018 as they were antidilutive: 1,167,775 stock options and stock appreciation rights, 271,9 restricted stock units, and 1,853,239 warrants. The following potential common shares were excluded from diluted EPS for the six months ended June 30, 2017 as they were antidilutive: 645,885 stock options and stock appreciation rights, 6 restricted stock units, and 38, warrants. In addition, the Company did not include any portion of unearned restricted stock units, outstanding options, stock appreciation rights or warrants in the calculation of diluted loss per common share for the three months ended June 30, 2018 or the three months ended June 30, 2017 because all such securities are anti-dilutive for the period. The Company had no unearned restricted shares during either period. As of June 30, 2018, the Company had 1,167,775 shares of common stock issuable upon the exercise of outstanding options and stock appreciation rights at a weighted average exercise price of $2.85 per share, 2,294,677 shares of common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $2.06 per share, 40,631,511 shares of common stock issuable upon the conversion of Series A Convertible Preferred Stock and accumulated dividends, and 539,926 shares of unvested restricted share units. |
Reclassifications | Reclassifications In 2018, we adjusted our operating expense categories to improve our alignment with common industry reporting practice, and as a result, certain amounts in prior periods have been reclassified to conform to the current period presentation. For the six months ended June 30, 2017, approximately $0.9 million of regulatory and clinical research expenses previously included in General and Administrative expense have been reclassified to Research and Development expense, and approximately $0.3 million of international training expense previously included in General and Administrative expense has been reclassified to Sales and Marketing expense. These reclassifications had no effect on reported income or losses. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (ASC 842),” which sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASC 842 supersedes the previous leases standard, ASC 840 Leases. The standard is effective for interim and annual periods beginning after December 31, 2018 (January 1, 2019 for the Company), with early adoption permitted. The Company is in the process of evaluating the impact of this accounting standard update. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Revenue Disaggregated by Type | Other recurring revenue represented 54% and 44% of revenue for the six months ended June 30, 2018 and 2017, respectively Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Systems $ 310,751 $ 1,828,439 $ 328,026 $ 2,047,334 Disposables, service and accessories 7,240,650 6,638,587 14,195,008 13,397,364 Total revenue $ 7,551,401 $ 8,467,026 $ 14,523,034 $ 15,444,698 |
Summary of Contract Assets and Liabilities | The following information summarizes the Company’s contract assets and liabilities: June 30, 2018 December 31, 2017 Contract Assets - Unbilled Receivables $ 9,167 $ 2,917 Product shipped, revenue deferred 934,136 941,724 Deferred service and license fees 6,499,720 5,372,908 Total deferred revenue 7,433,856 6,314,632 Less: Long-term deferred revenue (523,646 ) (611,863 ) Total current deferred revenue $ 6,910,210 $ 5,702,769 |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted EPS: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Net income (loss) $ (632,205 ) $ (177,299 ) $ 803,025 $ 999,669 Cumulative dividend on convertible preferred stock (357,518 ) (369,661 ) (711,107 ) (732,849 ) Net income attributable to convertible preferred stockholders — — (42,936 ) (167,539 ) Net income (loss) attributable to common stockholders $ (989,723 ) $ (546,960 ) $ 48,982 $ 99,281 Shares used for basic EPS-weighted average shares 58,926,545 22,581,330 45,019,358 22,450,392 Restricted Stock Units — — 267,936 8,087 Warrants — — 441,438 — Weighted average number of common shares and equivalents: 58,926,545 22,581,330 45,728,732 22,458,479 Basic EPS $ (0.02 ) $ (0.02 ) $ 0.00 $ 0.00 Diluted EPS $ (0.02 ) $ (0.02 ) $ 0.00 $ 0.00 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: June 30, 2018 December 31, 2017 Raw materials $ 2,480,765 $ 2,528,270 Work in process 353,800 4,836 Finished goods 2,967,617 2,515,637 Reserve for obsolescence (4,256,789 ) (3,901,772 ) Total inventory $ 1,545,393 $ 1,146,971 |
Prepaid Expenses and Other As22
Prepaid Expenses and Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following: June 30, 2018 December 31, 2017 Prepaid expenses $ 337,491 $ 575,501 Prepaid commissions 371,046 - Deferred financing costs - 24,658 Deposits 437,256 194,358 Total prepaid expenses and other assets 1,145,793 794,517 Less: Noncurrent prepaid expenses and other assets (262,037 ) (44,432 ) Total current prepaid expenses and other assets $ 883,756 $ 750,085 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: June 30, 2018 December 31, 2017 Equipment $ 6,640,694 $ 7,295,698 Leasehold improvements 2,592,338 2,592,339 9,233,032 9,888,037 Less: Accumulated depreciation (8,866,585 ) (9,295,349 ) Net property and equipment $ 366,447 $ 592,688 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: June 30, 2018 December 31, 2017 Accrued salaries, bonus, and benefits $ 1,467,050 $ 1,641,491 Accrued rent 255,850 441,417 Accrued licenses and maintenance fees 578,999 581,672 Accrued warranties 143,991 164,365 Accrued taxes 267,299 234,668 Accrued professional services 431,329 367,072 Other 348,768 299,931 Total accrued liabilities 3,493,286 3,730,616 Less: Long term accrued liabilities (534,413 ) (535,369 ) Total current accrued liabilities $ 2,958,873 $ 3,195,247 |
Convertible Preferred Stock a25
Convertible Preferred Stock and Stockholder's Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Summary of Option and Stock Appreciation Rights Activity | A summary of the option and stock appreciation rights activity for the six month period ended June 30, 2018 is as follows: Number of Options/SARs Range of Exercise Price Weighted Average Exercise Price per Share Outstanding, December 31, 2017 413,301 $0.62 - $54.90 $ 9.04 Granted 858,500 $0.74 - $0.83 $ 0.74 Exercised - $ - $ - Forfeited (104,026 ) $0.74 - $54.90 $ 10.02 Outstanding, June 30, 2018 1,167,775 $0.62 - $43.90 $ 2.85 |
Summary of Restricted Stock Unit Activity | A summary of the restricted stock unit activity for the six month period ended June 30, 2018 is as follows: Number of Restricted Stock Units Weighted Average Grant Date Fair Value per Unit Outstanding, December 31, 2017 680,363 $ 1.11 Granted 212,000 $ 0.84 Vested (293,912 ) $ 1.36 Forfeited (58,525 ) $ 1.12 Outstanding, June 30, 2018 539,926 $ 0.87 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value On Recurring Basis by Level | Fair Value Measurement Using Total Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities at June 30, 2018: Warrants issued August 2013 $ — $ — $ — $ — Warrants issued September 2016 — — — — Total liabilities at fair value: $ — $ — $ — $ — Liabilities at December 31, 2017: Warrants issued August 2013 5,746 — — 5,746 Warrants issued September 2016 19,569,231 — — 19,569,231 Total liabilities at fair value: $ 19,574,977 $ — $ — $ 19,574,977 |
Summary of Changes in Fair Value of Level 3 Financial Liabilities | The following table sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the six month period ended June 30, 2018: Warrants issued August 2013 Warrants issued September 2016 Total Liabilities Balance at beginning of period $ 5,746 $ 19,569,231 $ 19,574,977 Issues - - - Reclassifications - (16,984,616 ) (16,984,616 ) Settlements - - - Revaluation (5,746 ) (2,584,615 ) (2,590,361 ) Balance at end of period $ - $ - $ - |
Product Warranty Provisions (Ta
Product Warranty Provisions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Accrued Warranty | Accrued warranty, which is included in other accrued liabilities, consists of the following: June 30, 2018 December 31, 2017 Warranty accrual, beginning of the fiscal period $ 164,365 $ 222,845 Accrual adjustment for product warranty (4,153 ) 32,679 Payments made (16,221 ) (91,159 ) Warranty accrual, end of the fiscal period $ 143,991 $ 164,365 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jan. 02, 2018 | Dec. 31, 2017 | |
Effect on accumulated deficit | $ 300,000 | |||
Effect on income | $ 100,000 | |||
Remaining performance obligation | 1,300,000 | |||
Revenue recognized | 4,152,694 | $ 5,504,863 | ||
Capitalized contract costs | $ 400,000 | |||
Options and stock appreciation rights | 1,167,775 | 413,301 | ||
Weighted average exercise price | $ 2.85 | $ 9.04 | ||
Exercise price of warrants | $ 0.70 | |||
Research and Development Expense [Member] | ||||
Reclassification amount | 900,000 | |||
Selling and Marketing Expense [Member] | ||||
Reclassification amount | $ 300,000 | |||
Stock Option [Member] | ||||
Anti-dilutive common shares excluded from the computation of diluted earnings per share | 1,167,775 | 645,885 | ||
Options and stock appreciation rights | 1,167,775 | |||
Weighted average exercise price | $ 2.85 | |||
Restricted Stock Units [Member] | ||||
Anti-dilutive common shares excluded from the computation of diluted earnings per share | 271,990 | 628,775 | ||
Unvested restricted shares | 539,926 | |||
Warrant [Member] | ||||
Anti-dilutive common shares excluded from the computation of diluted earnings per share | 1,853,239 | 38,779,119 | ||
Common stock issuable upon exercise, warrants | 2,294,677 | |||
Exercise price of warrants | $ 2.06 | |||
Series A Convertible Preferred Stock [Member] | ||||
Options and stock appreciation rights | 40,631,511 | |||
Revenue from System Delivery and Installation [Member] | ||||
Revenues percentage | 2.00% | 13.00% | ||
Disposable Revenue [Member] | ||||
Revenues percentage | 34.00% | 33.00% | ||
Royalty Revenue [Member] | ||||
Revenues percentage | 10.00% | 10.00% | ||
Other Recurring Revenue [Member] | ||||
Revenues percentage | 54.00% | 44.00% |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Schedule of Revenue Disaggregated by Type (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Total revenue | $ 7,551,401 | $ 8,467,026 | $ 14,523,034 | $ 15,444,698 |
Systems [Member] | ||||
Total revenue | 310,751 | 1,828,439 | 328,026 | 2,047,334 |
Disposables, Service and Accessories [Member] | ||||
Total revenue | $ 7,240,650 | $ 6,638,587 | $ 14,195,008 | $ 13,397,364 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Summary of Contract Assets and Liabilities (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Total deferred revenue | $ 7,433,856 | $ 6,314,632 |
Less: Long-term deferred revenue | (523,646) | (611,863) |
Total current deferred revenue | 6,910,210 | 5,702,769 |
Contract Assets - Unbilled Receivables [Member] | ||
Total deferred revenue | 9,167 | 2,917 |
Product Shipped, Revenue Deferred [Member] | ||
Total deferred revenue | 934,136 | 941,724 |
Deferred Service and License Fees [Member] | ||
Total deferred revenue | $ 6,499,720 | $ 5,372,908 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting Policies [Abstract] | ||||
Net income (loss) | $ (632,205) | $ (177,299) | $ 803,025 | $ 999,669 |
Cumulative dividend on convertible preferred stock | (357,518) | (369,661) | (711,107) | (732,849) |
Net income attributable to convertible preferred stockholders | (42,936) | (167,539) | ||
Net income (loss) attributable to common stockholders | $ (989,723) | $ (546,960) | $ 48,982 | $ 99,281 |
Shares used for basic EPS-weighted average shares | 58,926,545 | 22,581,330 | 45,019,358 | 22,450,392 |
Restricted stock units | 267,936 | 8,087 | ||
Warrants | 441,438 | |||
Weighted average number of common shares and equivalents: | 58,926,545 | 22,581,330 | 45,728,732 | 22,458,479 |
Basic EPS | $ (0.02) | $ (0.02) | $ 0 | $ 0 |
Diluted EPS | $ (0.02) | $ (0.02) | $ 0 | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,480,765 | $ 2,528,270 |
Work in process | 353,800 | 4,836 |
Finished goods | 2,967,617 | 2,515,637 |
Reserve for obsolescence | (4,256,789) | (3,901,772) |
Total inventory | $ 1,545,393 | $ 1,146,971 |
Prepaid Expenses and Other As33
Prepaid Expenses and Other Assets - Schedule of Prepaid Expenses and Other Assets (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 337,491 | $ 575,501 |
Prepaid commissions | 371,046 | |
Deferred financing costs | 24,658 | |
Deposits | 437,256 | 194,358 |
Total prepaid expenses and other assets | 1,145,793 | 794,517 |
Less: Noncurrent prepaid expenses and other assets | (262,037) | (44,432) |
Total current prepaid expenses and other assets | $ 883,756 | $ 750,085 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Gross property and equipment | $ 9,233,032 | $ 9,888,037 |
Less: Accumulated depreciation | (8,866,585) | (9,295,349) |
Net property and equipment | 366,447 | 592,688 |
Equipment [Member] | ||
Gross property and equipment | 6,640,694 | 7,295,698 |
Leasehold Improvements [Member] | ||
Gross property and equipment | $ 2,592,338 | $ 2,592,339 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) | Jun. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Total intangible assets | $ 3,143,291 |
Accumulated amortization | $ 3,016,815 |
Accrued Liabilities (Details Na
Accrued Liabilities (Details Narrative) | Jun. 30, 2018USD ($)ft² | Dec. 31, 2017USD ($) | Aug. 31, 2016ft² | Sep. 30, 2013USD ($)ft² |
Real Estate [Line Items] | ||||
Accrued costs of rent liability | $ | $ 255,850 | $ 441,417 | $ 515,138 | |
Accrued lease termination costs remaining | $ | $ 47,728 | |||
Office [Member] | ||||
Real Estate [Line Items] | ||||
Square feet of leased space | 52,000 | |||
Demonstration And Assembly [Member] | ||||
Real Estate [Line Items] | ||||
Square feet of leased space | 12,000 | |||
Unimproved Space [Member] | ||||
Real Estate [Line Items] | ||||
Square feet of leased space | 13,000 | |||
Office Sublease [Member] | ||||
Real Estate [Line Items] | ||||
Square feet of leased space | 11,000 | |||
Accrued costs of rent liability | $ | $ 69,180 | |||
Accrued lease termination costs remaining | $ | $ 13,329 | |||
Office Sublease, December 31, 2018 [Member] | ||||
Real Estate [Line Items] | ||||
Square feet of leased space | 16,000 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2013 |
Payables and Accruals [Abstract] | ||||
Accrued salaries, bonus, and benefits | $ 1,467,050 | $ 1,641,491 | ||
Accrued rent | 255,850 | 441,417 | $ 515,138 | |
Accrued licenses and maintenance fees | 578,999 | 581,672 | ||
Accrued warranties | 143,991 | 164,365 | $ 222,845 | |
Accrued taxes | 267,299 | 234,668 | ||
Accrued professional services | 431,329 | 367,072 | ||
Other | 348,768 | 299,931 | ||
Total accrued liabilities | 3,493,286 | 3,730,616 | ||
Less: Long term accrued liabilities | (534,413) | (535,369) | ||
Total current accrued liabilities | $ 2,958,873 | $ 3,195,247 |
Long-Term Debt and Credit Fac38
Long-Term Debt and Credit Facilities (Details Narrative) - USD ($) | Apr. 26, 2018 | Apr. 26, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Total liquidity | $ 15,100,000 | |||
Cash and cash equivalents | 11,991,731 | $ 3,686,302 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | $ 5,000,000 | 5,000,000 | |
Line of credit extended date, description | On April 26, 2018, the Company entered into a First Amendment to Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank to extend the maturity of the revolving line of credit to April 25, 2019. | |||
Liquidity ratio, description | liquidity ratio greater than 1.75:1.00 | |||
Minimum unrestricted cash balance | 1,500,000 | |||
Line of credit facility, current borrowing capacity | $ 3,100,000 | |||
Revolving Credit Facility [Member] | Prime Rate [Member] | Streamline Period [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit interest rate | 4.50% | |||
Revolving Credit Facility [Member] | Prime Rate [Member] | Non-Streamline Period [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit interest rate | 4.50% | 1.50% |
Convertible Preferred Stock a39
Convertible Preferred Stock and Stockholders' Equity (Details Narrative) | May 23, 2017shares | Sep. 30, 2016$ / sharesshares | May 24, 2016shares | Jun. 10, 2014shares | Jun. 05, 2013shares | Jun. 30, 2018USD ($)Integer$ / sharesshares | Jun. 30, 2017USD ($) | Mar. 05, 2018$ / shares | Dec. 31, 2017$ / shares |
Number of stockholders votes | Integer | 1 | ||||||||
Dividends declared | $ | |||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||
Preferred stock redemption, triggering event, percent of common stock sold threshold | 50.00% | ||||||||
Exercise price of warrants | $ 0.70 | ||||||||
Warrants exercisable date | Sep. 29, 2021 | ||||||||
Proceeds from warrants exercises | $ | $ 9,864,697 | ||||||||
Increased in stockholders' equity | $ | $ 27,000,000 | ||||||||
Increased in common shares outstanding | shares | 35,791,927 | ||||||||
Remaining shares available for issuance | shares | 4,646,197 | ||||||||
Total compensation cost not yet recognized | $ | $ 800,000 | ||||||||
Weighted average amortization period of total compensation cost not yet recognized | 4 years | ||||||||
2012 Stock Incentive Plan [Member] | |||||||||
Stock plan expiration date | Mar. 25, 2012 | ||||||||
Increase in number of shares authorized for issuance under the plan | shares | 4,000,000 | 1,500,000 | 1,000,000 | 1,000,000 | |||||
Minimum [Member] | |||||||||
Exercise price of warrants | $ 0.28 | ||||||||
Maximum [Member] | |||||||||
Exercise price of warrants | $ 0.70 | ||||||||
Series A Convertible Preferred Stock [Member] | |||||||||
Number of preferred stock issued | shares | 24,000 | ||||||||
Preferred stock, par value | $ 0.001 | ||||||||
Preferred stock, stated value | 1,000 | ||||||||
Preferred stock, conversion price | $ 0.65 | ||||||||
Common stock issuable from warrants | shares | 36,923,078 | ||||||||
Preferred stock dividend rate | 6.00% |
Convertible Preferred Stock a40
Convertible Preferred Stock and Stockholders' Equity - Summary of Option and Stock Appreciation Rights Activity (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Number of Options/SARs, Outstanding, Beinning Balance | shares | 413,301 |
Number of Options/SARs, Granted | shares | 858,500 |
Number of Options/SARs, Exercised | shares | |
Number of Options/SARs, Forfeited | shares | (104,026) |
Number of Options/SARs, Outstanding, Ending Balance | shares | 1,167,775 |
Weighted Average Exercise Price per Share, Outstanding, Beginning Balance | $ 9.04 |
Weighted Average Exercise Price per Share, Granted | 0.74 |
Weighted Average Exercise Price per Share, Exercised | |
Weighted Average Exercise Price per Share, Forfeited | 10.02 |
Weighted Average Exercise Price per Share, Outstanding, Ending Balance | 2.85 |
Range One [Member] | |
Range of Exercise Price, Lower Limit | 0.62 |
Range of Exercise Price, Upper Limit | 54.90 |
Range Two [Member] | |
Range of Exercise Price, Lower Limit | 0.74 |
Range of Exercise Price, Upper Limit | 0.83 |
Range Three [Member] | |
Range of Exercise Price, Lower Limit | 0.74 |
Range of Exercise Price, Upper Limit | 54.90 |
Range Four [Member] | |
Range of Exercise Price, Lower Limit | 0.62 |
Range of Exercise Price, Upper Limit | $ 43.90 |
Convertible Preferred Stock a41
Convertible Preferred Stock and Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units [Member] | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Restricted Stock Units, Outstanding, December 31, 2017 | shares | 680,363 |
Number of Restricted Stock Units, Granted | shares | 212,000 |
Number of Restricted Stock Units, Vested | shares | (293,912) |
Number of Restricted Stock Units, Forfeited | shares | (58,525) |
Number of Restricted Stock Units, Outstanding, June 30, 2018 | shares | 539,926 |
Weighted Average Grant Date Fair Value per Unit, Outstanding, December 31, 2017 | $ / shares | $ 1.11 |
Weighted Average Grant Date Fair Value per Unit, Granted | $ / shares | 0.84 |
Weighted Average Grant Date Fair Value per Unit, Vested | $ / shares | 1.36 |
Weighted Average Grant Date Fair Value per Unit, Forfeited | $ / shares | 1.12 |
Weighted Average Grant Date Fair Value per Unit, Outstanding, June 30, 2018 | $ / shares | $ 0.87 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - Exchange Warrants [Member] | 6 Months Ended |
Jun. 30, 2018$ / shares | |
Warrant expiration date, description | Expire in November 2018 and were revalued as of June 30, 2018 |
Closing stock price | $ 0.77 |
Measurement Input, Price Volatility [Member] | |
Fair value assumptions, measurement input, percentages | 71.73% |
Measurement Input, Risk Free Interest Rate [Member] | |
Fair value assumptions, measurement input, percentages | 2.11% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets And Liabilities Measured at Fair Value On Recurring Basis By Level (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Warrants issued | $ 19,574,977 | |
Fair Value, Inputs, Level 1 [Member] | ||
Total liabilities at fair value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Total liabilities at fair value | ||
Fair Value, Inputs, Level 3 [Member] | ||
Total liabilities at fair value | 19,574,977 | |
Fair Value, Measurements, Recurring [Member] | ||
Total liabilities at fair value | 19,574,977 | |
Fair Value, Measurements, Recurring [Member] | Warrants Issued August 2013 [Member] | ||
Warrants issued | 5,746 | |
Fair Value, Measurements, Recurring [Member] | Warrants Issued August 2013 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Warrants issued | ||
Fair Value, Measurements, Recurring [Member] | Warrants Issued August 2013 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Warrants issued | ||
Fair Value, Measurements, Recurring [Member] | Warrants Issued August 2013 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Warrants issued | 5,746 | |
Fair Value, Measurements, Recurring [Member] | Warrants Issued September 2016 [Member] | ||
Warrants issued | 19,569,231 | |
Fair Value, Measurements, Recurring [Member] | Warrants Issued September 2016 [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Warrants issued | ||
Fair Value, Measurements, Recurring [Member] | Warrants Issued September 2016 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Warrants issued | ||
Fair Value, Measurements, Recurring [Member] | Warrants Issued September 2016 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Warrants issued | $ 19,569,231 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Financial Liabilities (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Balance at beginning of period | $ 19,574,977 |
Issues | |
Reclassifications | (16,984,616) |
Settlements | |
Revaluation | (2,590,361) |
Balance at end of period | |
Fair Value, Measurements, Recurring [Member] | Warrants Issued August 2013 [Member] | |
Balance at beginning of period | 5,746 |
Issues | |
Reclassifications | |
Settlements | |
Revaluation | (5,746) |
Balance at end of period | |
Fair Value, Measurements, Recurring [Member] | Warrants Issued September 2016 [Member] | |
Balance at beginning of period | 19,569,231 |
Issues | |
Reclassifications | (16,984,616) |
Settlements | |
Revaluation | (2,584,615) |
Balance at end of period |
Product Warranty Provisions (De
Product Warranty Provisions (Details Narrative) | 6 Months Ended |
Jun. 30, 2018 | |
Product Warranties Disclosures [Abstract] | |
Standard product warranty coverage term | 1 year |
Product Warranty Provisions - S
Product Warranty Provisions - Schedule of Accrued Warranty (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | ||
Warranty accrual, beginning of the fiscal period | $ 164,365 | $ 222,845 |
Accrual adjustment for product warranty | (4,153) | 32,679 |
Payments made | (16,221) | (91,159) |
Warranty accrual, end of the fiscal period | $ 143,991 | $ 164,365 |