Stereotaxis (STXS) 10-Q 14 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Document And Entity Information
Entity Registrant Name	Stereotaxis, Inc.
Entity Central Index Key	0001289340
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		66,721,079
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 31,650,559	$ 10,796,072
Accounts receivable, net of allowance of $368,191 and $398,847 in 2019 and 2018, respectively	3,830,395	5,021,111
Inventories, net	1,546,716	1,191,666
Prepaid expenses and other current assets	1,022,322	963,700
Total current assets	38,049,992	17,972,549
Property and equipment, net	270,751	343,693
Operating lease right-of-use assets	4,771,187
Other assets	214,042	198,365
Total assets	43,305,972	18,514,607
Current liabilities:
Accounts payable	1,031,975	1,726,360
Accrued liabilities	2,641,254	2,642,481
Deferred revenue	5,283,783	5,825,536
Current portion of operating lease liabilities	2,235,465
Total current liabilities	11,192,477	10,194,377
Long-term deferred revenue	560,508	407,151
Operating lease liabilities	2,574,469
Other liabilities	260,947	641,461
Total liabilities	14,588,401	11,242,989
Series A - Convertible preferred stock:
Convertible preferred stock, Series A, par value $0.001; 23,780 and 23,900 shares outstanding at 2019 and 2018	5,929,749	5,960,475
Stockholders' equity:
Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 and no shares outstanding at 2019 and 2018	5,610
Common stock, par value $0.001; 300,000,000 shares authorized, 66,677,111 and 59,058,297 shares issued at 2019 and 2018, respectively	66,677	59,058
Additional paid in capital	503,149,814	478,179,574
Treasury stock, 4,015 shares at 2019 and 2018	(205,999)	(205,999)
Accumulated deficit	(480,228,280)	(476,721,490)
Total stockholders' equity	22,787,822	1,311,143
Total liabilities and stockholders' equity	$ 43,305,972	$ 18,514,607

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 368,191	$ 398,847
Series A Convertible Preferred Stock, par value	$ 0.001	$ 0.001
Series A Convertible Preferred Stock, shares outstanding	23,780	23,900
Series B Preferred Stock, par value	$ 0.001	$ 0.001
Series B Preferred Stock, shares authorized	10,000,000	10,000,000
Series B Preferred Stock, shares outstanding	5,610,121
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	66,677,111	59,058,297
Treasury stock, shares	4,015	4,015

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Sublease	$ 246,532		$ 739,593
Total revenue	8,201,748	7,555,479	22,009,733	22,078,512
Cost of revenue:
Sublease	246,531		739,592
Total cost of revenue	1,831,593	1,633,458	4,391,138	4,287,855
Gross margin	6,370,155	5,922,021	17,618,595	17,790,657
Operating expenses:
Research and development	1,751,081	2,000,780	7,405,462	5,995,800
Sales and marketing	3,120,632	2,819,101	9,666,975	9,911,514
General and administrative	1,539,648	1,215,920	4,186,277	3,753,703
Total operating expenses	6,411,361	6,035,801	21,258,714	19,661,017
Operating loss	(41,206)	(113,780)	(3,640,119)	(1,870,360)
Other income				2,590,361
Interest income (expense)	84,954	(2,515)	133,329	(33,271)
Net income (loss)	43,748	(116,295)	(3,506,790)	686,730
Cumulative dividend on convertible preferred stock	(360,647)	(361,447)	(1,071,351)	(1,072,553)
Loss attributable to common stockholders	$ (316,899)	$ (477,742)	$ (4,578,141)	$ (385,823)
Net loss per share attributable to common stockholders:
Basic	$ 0	$ (0.01)	$ (0.07)	$ (0.01)
Diluted	$ 0	$ (0.01)	$ (0.07)	$ (0.01)
Weighted average number of common shares and equivalents:
Basic	64,294,153	59,008,219	61,405,083	49,733,553
Diluted	64,294,153	59,008,219	61,405,083	49,733,553
Systems [Member]
Revenue:
Total revenue	$ 1,696,964	$ 715,484	$ 1,755,015	$ 1,043,510
Cost of revenue:
Total cost of revenue	665,463	596,869	722,828	1,257,980
Disposables, Service and Accessories [Member]
Revenue:
Total revenue	6,258,252	6,839,995	19,515,125	21,035,002
Cost of revenue:
Total cost of revenue	$ 919,599	$ 1,036,589	$ 2,928,718	$ 3,029,875

Statements of Convertible Prefe

Statements of Convertible Preferred Stock and Stockholders' Equity (Unaudited) - USD ($)	Convertible Preferred Stock [Member]	Series B Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]		Total
Beginning Balance at Dec. 31, 2017	$ 5,960,475		$ 22,806	$ 450,748,403	$ (205,999)	$ (477,132,808)		$ (26,567,598)
Beginning Balance, Shares at Dec. 31, 2017	23,900		22,805,731
Issuance of common stock and warrants			$ 35,793	26,813,524				26,849,317
Issuance of common stock and warrants, Shares			35,792,593
Share-based compensation			$ 382	465,611				465,993
Share-based compensation, shares			382,356
Components of net income (loss)						686,730		686,730
Employee stock purchase plan			$ 63	44,412				44,475
Employee stock purchase plan, Shares			63,484		1
Cumulative catchup for adoption of ASC 606						294,561	[1]	294,561	[1]
Ending Balance at Sep. 30, 2018	$ 5,960,475		$ 59,044	478,071,950	(205,999)	(476,151,517)		1,773,478
Ending Balance, Shares at Sep. 30, 2018	23,900		59,044,164
Beginning Balance at Jun. 30, 2018	$ 5,960,475		$ 58,933	477,910,692	(205,999)	(476,035,222)		1,728,404
Beginning Balance, Shares at Jun. 30, 2018	23,900		58,933,384
Issuance of common stock			$ 1					1
Issuance of common stock, shares			666
Share-based compensation			$ 88	145,461				145,549
Share-based compensation, shares			88,444
Components of net income (loss)						(116,295)		(116,295)
Employee stock purchase plan			$ 22	15,797				15,819
Employee stock purchase plan, Shares			21,670
Ending Balance at Sep. 30, 2018	$ 5,960,475		$ 59,044	478,071,950	(205,999)	(476,151,517)		1,773,478
Ending Balance, Shares at Sep. 30, 2018	23,900		59,044,164
Beginning Balance at Dec. 31, 2018	$ 5,960,475		$ 59,058	478,179,574	(205,999)	(476,721,490)		1,311,143
Beginning Balance, Shares at Dec. 31, 2018	23,900		59,058,297
Issuance of common stock and warrants			$ 7,164	12,878,144				12,885,308
Issuance of common stock and warrants, Shares			7,163,760
Share-based compensation			$ 207	1,380,488				1,380,695
Share-based compensation, shares			206,962
Components of net income (loss)						(3,506,790)		(3,506,790)
Employee stock purchase plan			$ 32	54,770				54,802
Employee stock purchase plan, Shares			32,064
Preferred stock issuance		$ 5,610		10,626,328				10,631,938
Preferred stock issuance, shares		5,610,121
Preferred stock conversion	$ (30,726)		$ 216	$ 30,510				$ 30,726
Preferred stock conversion, shares	(120)		216,028
Ending Balance at Sep. 30, 2019	$ 5,929,749	$ 5,610	$ 66,677	$ 503,149,814	$ (205,999)	$ (480,228,280)		$ 22,787,822
Ending Balance, Shares at Sep. 30, 2019	23,780	5,610,121	66,677,111
Beginning Balance at Jun. 30, 2019	$ 5,948,953		$ 59,383	479,127,279	(205,999)	(480,272,028)		(1,291,365)
Beginning Balance, Shares at Jun. 30, 2019	23,855		59,383,038
Issuance of common stock			$ 7,117	12,928,623				12,935,740
Issuance of common stock, shares			7,117,276
Share-based compensation			$ 33	425,680				425,713
Share-based compensation, shares			32,500
Components of net income (loss)						43,748		43,748
Employee stock purchase plan			$ 8	22,836				22,844
Employee stock purchase plan, Shares			8,307
Preferred stock issuance		$ 5,610		10,626,328				10,631,938
Preferred stock issuance, shares		5,610,121
Preferred stock conversion	$ (19,204)		$ 136	19,068				19,204
Preferred stock conversion, shares	(75)		135,990
Ending Balance at Sep. 30, 2019	$ 5,929,749	$ 5,610	$ 66,677	$ 503,149,814	$ (205,999)	$ (480,228,280)		$ 22,787,822
Ending Balance, Shares at Sep. 30, 2019	23,780	5,610,121	66,677,111
[1]	Represents the adjustments related to the adoption of new accounting standards. See Note 2 for details.

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net income (loss)	$ (3,506,790)	$ 686,730
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation	88,774	394,154
Amortization of intangibles		49,491
Amortization of deferred finance costs		24,657
Non-cash lease expense	1,756,757
Share-based compensation	898,836	465,851
Loss on asset disposal		1,449
Adjustment of warrants		(2,590,361)
Changes in operating assets and liabilities:
Accounts receivable	1,190,716	(800,856)
Inventories	(355,050)	(55,486)
Prepaid expenses and other current assets	(58,622)	(131,116)
Other assets	(15,677)	(1,799)
Accounts payable	(694,385)	(80,066)
Accrued liabilities	480,632	(372,289)
Deferred revenue	(388,396)	553,937
Operating lease liability	(1,718,010)
Other liabilities	(380,514)	86,204
Net cash used in operating activities	(2,701,729)	(1,769,500)
Cash flows from investing activities
Purchase of fixed assets	(15,832)	(255,554)
Net cash used in investing activities	(15,832)	(255,554)
Cash flows from financing activities
Proceeds from issuance of stock, net of issuance costs	23,572,048	44,621
Proceeds from warrant exercise		9,864,697
Net cash provided by financing activities	23,572,048	9,909,318
Net increase in cash and cash equivalents	20,854,487	7,884,264
Cash and cash equivalents at beginning of period	10,796,072	3,686,302
Cash and cash equivalents at end of period	$ 31,650,559	$ 11,570,566

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	1. Description of Business Stereotaxis designs, manufactures and markets an advanced robotic navigation system for use in a hospital’s interventional surgical suite, or “interventional lab”, that we believe revolutionizes the treatment of arrhythmias by enabling enhanced safety, efficiency, and efficacy for catheter-based, or interventional, procedures. Our products include the Genesis RMN ® Niobe Niobe Odyssey Odyssey Vdrive Vdrive The Genesis Niobe Niobe In addition to the robotic magnetic navigation systems and their components, Stereotaxis also has developed the Odyssey Odyssey Cinema Odyssey Our Vdrive Vdrive Vdrive Vdrive Duo Vdrive Vdrive Duo We promote our full suite of products in a typical hospital implementation, subject to regulatory approvals or clearances. This implementation requires a hospital to agree to an upfront capital payment and recurring payments. The upfront capital payment typically includes equipment and installation charges. The recurring payments typically include disposable costs for each procedure, equipment service costs beyond warranty period, and ongoing software updates. In hospitals where our full suite of products has not been implemented, equipment upgrade or expansion can be implemented upon purchasing of the necessary upgrade or expansion. The Niobe , Odyssey Workstation, Cardiodrive, Vdrive Vdrive Duo V-CAS V-Loop V-Sono Genesis V-CAS Deflect We have strategic relationships with technology leaders in the global interventional market. Through these strategic relationships we provide compatibility between our robotic magnetic system and digital imaging and 3D catheter location sensing technology, as well as disposable interventional devices. The maintenance of these strategic relationships, or the establishment of equivalent alternatives, is critical to our commercialization efforts. There are no guarantees that any existing strategic relationships will continue and efforts are ongoing to ensure the availability of integrated next generation systems and/or equivalent alternatives. We cannot provide assurance as to the timeline of the ongoing availability of such compatible systems or our ability to obtain equivalent alternatives on competitive terms or at all.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
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 nine month period ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ended December 31, 2019 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, 2018 as filed with the Securities and Exchange Commission (SEC) on March 15, 2019. 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 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”). Revenue and Costs of Revenue The Company adopted Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers 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 software updates 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 8% and 5% of revenue for the nine months ended September 30, 2019 and 2018, 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 33% of revenue for the nine months ended September 30, 2019 and 2018. 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 represented 10% of revenue for the nine months ended September 30, 2019 and 2018. Other Recurring Revenue: Other recurring revenue includes revenue from product maintenance plans, other post warranty maintenance, and the implied obligation to provide software enhancements if and when available for one year following installation. Revenue from services and software enhancements is deferred and amortized over the service or update period, which is typically one year. Revenue related to services performed on a time-and-materials basis is recognized when performed. Other recurring revenue represented 46% and 52% of revenue for the nine months ended September 30, 2019 and 2018, respectively. Sublease Revenue: The adoption of new lease accounting guidance as of January 1, 2019 requires the Company to record sublease income as revenue beginning in 2019. Sublease revenue represented 3% of revenue for the nine months ended September 30, 2019. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Systems $ 1,696,964 $ 715,484 $ 1,755,015 $ 1,043,510 Disposables, service and accessories 6,258,252 6,839,995 19,515,125 21,035,002 Sublease 246,532 - 739,593 - Total revenue $ 8,201,748 $ 7,555,479 $ 22,009,733 $ 22,078,512 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 $1.0 million as of September 30, 2019. 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: September 30, 2019 December 31, 2018 Contract Assets - Unbilled Receivables $ 314,494 $ 251,867 Customer deposits 41,860 487,086 Product shipped, revenue deferred 645,199 645,199 Deferred service and license fees 5,157,232 5,100,402 Total deferred revenue 5,844,291 6,232,687 Less: Long-term deferred revenue (560,508 ) (407,151 ) Total current deferred revenue $ 5,283,783 $ 5,825,536 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 nine months ended September 30, 2019 and 2018, that was included in the deferred revenue balance at the beginning of each reporting period was $5.4 million and $5.1 million 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 $0.3 million as of September 30, 2019. 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 and units 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income (loss) $ 43,748 $ (116,295 ) $ (3,506,790 ) $ 686,730 Cumulative dividend on convertible preferred stock (360,647 ) (361,447 ) (1,071,351 ) (1,072,553 ) Net loss attributable to common stockholders $ (316,899 ) $ (477,742 ) $ (4,578,141 ) $ (385,823 ) Weighted average number of common shares and equivalents: 64,294,153 59,008,219 61,405,083 49,733,553 Basic EPS $ (0.00 ) $ (0.01 ) $ (0.07 ) $ (0.01 ) Diluted EPS $ (0.00 ) $ (0.01 ) $ (0.07 ) $ (0.01 ) 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 because all such securities are anti-dilutive for all periods presented. The Company had no unearned restricted shares during any period. As of September 30, 2019, the Company had 1,944,256 shares of common stock issuable upon the exercise of outstanding options and stock appreciation rights at a weighted average exercise price of $2.13 per share, 584,616 shares of common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $0.70 per share, 43,175,861 shares of common stock issuable upon the conversion of Series A Convertible Preferred Stock, 5,610,121 shares of common stock issuable upon the conversion of Series B Convertible Preferred Stock and accumulated dividends, and 844,087 shares of unvested restricted share units. Recently Issued Accounting Pronouncements Effective January 1, 2019, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842)

Inventories

Inventories	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventories	3. Inventories Inventories consist of the following: September 30, 2019 December 31, 2018 Raw materials $ 2,831,977 $ 2,686,870 Work in process 275,745 2,594 Finished goods 2,308,165 2,963,013 Reserve for obsolescence (3,869,171 ) (4,460,811 ) Total inventory $ 1,546,716 $ 1,191,666

Prepaid Expenses and Other Asse

Prepaid Expenses and Other Assets	9 Months Ended
	Sep. 30, 2019
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: September 30, 2019 December 31, 2018 Prepaid expenses $ 500,537 $ 401,972 Prepaid commissions 331,523 304,585 Deposits 404,304 455,508 Total prepaid expenses and other assets 1,236,364 1,162,065 Less: Noncurrent prepaid expenses and other assets (214,042 ) (198,365 ) Total current prepaid expenses and other assets $ 1,022,322 $ 963,700

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment	5. Property and Equipment September 30, 2019 December 31, 2018 Equipment $ 6,389,366 $ 6,739,939 Leasehold improvements 2,488,505 2,684,065 8,877,871 9,424,004 Less: Accumulated depreciation (8,607,120 ) (9,080,311 ) Net property and equipment $ 270,751 $ 343,693 Certain prior year amounts have been reclassified to conform to the 2019 presentation.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	6. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) The Company leases its facilities under operating leases, which were previously not recognized on the Company’s balance sheets. With the adoption of ASC 842, operating lease agreements are required to be recognized on the balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Many of our leases include both lease (i.e., fixed payments including rent, taxes, and insurance costs) and non-lease components (i.e., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. A portion of our principal executive office is subleased to a third party through 2021. The sublease does not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. In addition, the sublease does not contain contingent rent provisions nor are there options to extend or terminate the sublease. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The Company elected not to include short-term leases (i.e. leases with initial terms of twelve months or less) on the balance sheet. The calculated amounts of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum lease payments. ASC 842 requires the use of the discount rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception. At September 30, 2019, the weighted average discount rate for operating leases was 9.0% and the weighted average remaining lease term for operating lease term is 2.25 years. The following table represents lease costs and other lease information. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 585,588 $ 1,756,759 Short-term lease cost 19,671 58,311 Sublease income (246,532 ) (739,593 ) Total lease cost $ 358,727 $ 1,075,477 Cash paid within operating cash flows $ 612,533 $ 1,840,023 The initial recognition of the right of use assets was $6.2 million. Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred. Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2019, excluding sublease income, were as follows: September 30, 2019 2019 $ 572,612 2020 2,339,810 2021 2,382,662 2022 and thereafter - Total lease payments $ 5,295,084 Less: Interest (485,150 ) Present value of lease liabilities $ 4,809,934 The undiscounted future cash flows to be received under the sublease are $0.2 million in 2019, $1.0 million in 2020 and $1.0 million in 2021.

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Accrued Liabilities	7. Accrued Liabilities Accrued liabilities consist of the following: September 30, 2019 December 31, 2018 Accrued salaries, bonus, and benefits $ 1,481,466 $ 1,491,844 Accrued licenses and maintenance fees 483,879 577,389 Accrued warranties 146,468 149,464 Accrued taxes 204,679 192,268 Accrued professional services 216,938 489,017 Other 368,771 383,960 Total accrued liabilities 2,902,201 3,283,942 Less: Long term accrued liabilities (260,947 ) (641,461 ) Total current accrued liabilities $ 2,641,254 $ 2,642,481 Certain prior year amounts have been reclassified to conform to the 2019 presentation.

Long-Term Debt and Credit Facil

Long-Term Debt and Credit Facilities	9 Months Ended
	Sep. 30, 2019
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 working capital line of credit matures on June 30, 2020. 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 and the interest rate is equal to the prime rate subject to a floor of 4.5%. 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 June 27, 2019, the Company entered into a Second Amendment to and Reinstatement of Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank to extend the maturity of the revolving line of credit to June 30, 2020 under substantially identical terms to the prior agreement. As of September 30, 2019, the Company had no outstanding balance under the revolving line of credit. Draws on the line of credit were made based on the borrowing capacity one week in arrears. As of September 30, 2019, the Company had a borrowing capacity of $2.4 million based on the Company’s collateralized assets. The Company’s total liquidity as of September 30, 2019, was $34.1 million which included cash and cash equivalents of $31.7 million.

Convertible Preferred Stock and

Convertible Preferred Stock and Stockholders' Equity	9 Months Ended
	Sep. 30, 2019
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 September 30, 2019. 2019 Equity Financing and Series B Convertible Preferred Stock On August 7, 2019, the Company entered into a Securities Purchase Agreement with certain institutional and other accredited investors, whereby it, in a private placement, agreed to issue and sell to the investors an aggregate of 6,585,000 shares of the Company’s common stock, $0.001 par value per share, at a price of $2.05 per share and 5,610,121 shares of the Company’s Series B Convertible Preferred Stock, $0.001 par value per share which are convertible into shares of the Company’s Common Stock, at a price of $2.05 per share. The Series B Preferred Stock, which is a Common Stock equivalent but non-voting and with a blocker on conversion if the holder would exceed a specified threshold of voting security ownership, is convertible into Common Stock on a one-for-one basis, subject to adjustment for events such as stock splits, combinations and the like as provided in the Purchase Agreement. The Series B Convertible Preferred Stock is reported in the stockholder’s equity section of the Company’s Balance Sheet. The Company received net proceeds of approximately $23.1 million, after offering expenses. The Company plans to use the funds for general corporate purposes. Series A 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 (the “SPA Warrants”) 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. The warrants were originally puttable upon the occurrence of certain events outside of the Company’s control, and were classified as liabilities under Accounting Standards Codification (“ASC”) Topic 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. 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. Any holder who exercised warrants at the reduced strike price was required to enter into a lock-up agreement with the Company agreeing not to sell the warrants or the common shares received upon exercise of the warrants for a period of 18 months following March 12, 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 million and common shares outstanding increased by 35,791,927 shares. The Consent and Amendment and the Amended and Restated Form of Warrants are available in a Form 8-K filed with the Securities and Exchange Commission on March 6, 2018. 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 September 30, 2019, the Company had 3,203,531 remaining shares of the Company’s common stock to provide for current and future grants under its various equity plans. At September 30, 2019, 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 $1.7 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 nine month period ended September 30, 2019 is as follows: Number of Options/SARs Range of Exercise Price Weighted Average Exercise Price per Share Outstanding, December 31, 2018 1,165,086 $0.74 - $43.90 $ 2.54 Granted 992,000 $2.03 - $2.89 $ 2.04 Exercised (35,328 ) $0.74 - $2.15 $ 0.90 Forfeited (177,502 ) $0.74 - $43.90 $ 4.50 Outstanding, September 30, 2019 1,944,256 $0.74 - $36.20 $ 2.13 A summary of the restricted stock unit activity for the nine month period ended September 30, 2019 is as follows: Number of Weighted Average Outstanding, December 31, 2018 647,649 $ 0.83 Granted 420,000 $ 1.98 Vested (206,962 ) $ 1.36 Forfeited (16,600 ) $ 0.76 Outstanding, September 30, 2019 844,087 $ 1.28

Product Warranty Provisions

Product Warranty Provisions	9 Months Ended
	Sep. 30, 2019
Product Warranties Disclosures [Abstract]
Product Warranty Provisions	10. Product Warranty Provisions The Company’s standard policy is to warrant all capital systems against defects in material or workmanship for one year following installation. The Company’s estimate of costs to service the warranty obligations is based on historical experience and current product performance trends. A regular review of warranty obligations is performed to determine the adequacy of the reserve and adjustments are made to the estimated warranty liability as appropriate. Accrued warranty, which is included in other accrued liabilities, consists of the following: September 30, 2019 December 31, 2018 Warranty accrual, beginning of the fiscal period $ 149,464 $ 164,365 Accrual adjustment for product warranty 41,023 34,253 Payments made (44,019 ) (49,154 ) Warranty accrual, end of the fiscal period $ 146,468 $ 149,464

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. 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	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events None.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
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 nine month period ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ended December 31, 2019 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, 2018 as filed with the Securities and Exchange Commission (SEC) on March 15, 2019.
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 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”).
Revenue and Costs of Revenue	Revenue and Costs of Revenue The Company adopted Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers 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 software updates 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 8% and 5% of revenue for the nine months ended September 30, 2019 and 2018, 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 33% of revenue for the nine months ended September 30, 2019 and 2018. 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 represented 10% of revenue for the nine months ended September 30, 2019 and 2018. Other Recurring Revenue: Other recurring revenue includes revenue from product maintenance plans, other post warranty maintenance, and the implied obligation to provide software enhancements if and when available for one year following installation. Revenue from services and software enhancements is deferred and amortized over the service or update period, which is typically one year. Revenue related to services performed on a time-and-materials basis is recognized when performed. Other recurring revenue represented 46% and 52% of revenue for the nine months ended September 30, 2019 and 2018, respectively. Sublease Revenue: The adoption of new lease accounting guidance as of January 1, 2019 requires the Company to record sublease income as revenue beginning in 2019. Sublease revenue represented 3% of revenue for the nine months ended September 30, 2019. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Systems $ 1,696,964 $ 715,484 $ 1,755,015 $ 1,043,510 Disposables, service and accessories 6,258,252 6,839,995 19,515,125 21,035,002 Sublease 246,532 - 739,593 - Total revenue $ 8,201,748 $ 7,555,479 $ 22,009,733 $ 22,078,512 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 $1.0 million as of September 30, 2019. 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: September 30, 2019 December 31, 2018 Contract Assets - Unbilled Receivables $ 314,494 $ 251,867 Customer deposits 41,860 487,086 Product shipped, revenue deferred 645,199 645,199 Deferred service and license fees 5,157,232 5,100,402 Total deferred revenue 5,844,291 6,232,687 Less: Long-term deferred revenue (560,508 ) (407,151 ) Total current deferred revenue $ 5,283,783 $ 5,825,536 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 nine months ended September 30, 2019 and 2018, that was included in the deferred revenue balance at the beginning of each reporting period was $5.4 million and $5.1 million respectively.
Assets Recognized from the Costs 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 $0.3 million as of September 30, 2019. 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 and units 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")	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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income (loss) $ 43,748 $ (116,295 ) $ (3,506,790 ) $ 686,730 Cumulative dividend on convertible preferred stock (360,647 ) (361,447 ) (1,071,351 ) (1,072,553 ) Net loss attributable to common stockholders $ (316,899 ) $ (477,742 ) $ (4,578,141 ) $ (385,823 ) Weighted average number of common shares and equivalents: 64,294,153 59,008,219 61,405,083 49,733,553 Basic EPS $ (0.00 ) $ (0.01 ) $ (0.07 ) $ (0.01 ) Diluted EPS $ (0.00 ) $ (0.01 ) $ (0.07 ) $ (0.01 ) 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 because all such securities are anti-dilutive for all periods presented. The Company had no unearned restricted shares during any period. As of September 30, 2019, the Company had 1,944,256 shares of common stock issuable upon the exercise of outstanding options and stock appreciation rights at a weighted average exercise price of $2.13 per share, 584,616 shares of common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $0.70 per share, 43,175,861 shares of common stock issuable upon the conversion of Series A Convertible Preferred Stock, 5,610,121 shares of common stock issuable upon the conversion of Series B Convertible Preferred Stock and accumulated dividends, and 844,087 shares of unvested restricted share units.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Effective January 1, 2019, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule of Revenue Disaggregated by Type	Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Systems $ 1,696,964 $ 715,484 $ 1,755,015 $ 1,043,510 Disposables, service and accessories 6,258,252 6,839,995 19,515,125 21,035,002 Sublease 246,532 - 739,593 - Total revenue $ 8,201,748 $ 7,555,479 $ 22,009,733 $ 22,078,512
Summary of Contract Assets and Liabilities	The following information summarizes the Company’s contract assets and liabilities: September 30, 2019 December 31, 2018 Contract Assets - Unbilled Receivables $ 314,494 $ 251,867 Customer deposits 41,860 487,086 Product shipped, revenue deferred 645,199 645,199 Deferred service and license fees 5,157,232 5,100,402 Total deferred revenue 5,844,291 6,232,687 Less: Long-term deferred revenue (560,508 ) (407,151 ) Total current deferred revenue $ 5,283,783 $ 5,825,536
Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income (loss) $ 43,748 $ (116,295 ) $ (3,506,790 ) $ 686,730 Cumulative dividend on convertible preferred stock (360,647 ) (361,447 ) (1,071,351 ) (1,072,553 ) Net loss attributable to common stockholders $ (316,899 ) $ (477,742 ) $ (4,578,141 ) $ (385,823 ) Weighted average number of common shares and equivalents: 64,294,153 59,008,219 61,405,083 49,733,553 Basic EPS $ (0.00 ) $ (0.01 ) $ (0.07 ) $ (0.01 ) Diluted EPS $ (0.00 ) $ (0.01 ) $ (0.07 ) $ (0.01 )

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following: September 30, 2019 December 31, 2018 Raw materials $ 2,831,977 $ 2,686,870 Work in process 275,745 2,594 Finished goods 2,308,165 2,963,013 Reserve for obsolescence (3,869,171 ) (4,460,811 ) Total inventory $ 1,546,716 $ 1,191,666

Prepaid Expenses and Other As_2

Prepaid Expenses and Other Assets (Tables)	9 Months Ended
	Sep. 30, 2019
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: September 30, 2019 December 31, 2018 Prepaid expenses $ 500,537 $ 401,972 Prepaid commissions 331,523 304,585 Deposits 404,304 455,508 Total prepaid expenses and other assets 1,236,364 1,162,065 Less: Noncurrent prepaid expenses and other assets (214,042 ) (198,365 ) Total current prepaid expenses and other assets $ 1,022,322 $ 963,700

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	September 30, 2019 December 31, 2018 Equipment $ 6,389,366 $ 6,739,939 Leasehold improvements 2,488,505 2,684,065 8,877,871 9,424,004 Less: Accumulated depreciation (8,607,120 ) (9,080,311 ) Net property and equipment $ 270,751 $ 343,693

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of Lease Costs and Other Lease Information	The following table represents lease costs and other lease information. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 585,588 $ 1,756,759 Short-term lease cost 19,671 58,311 Sublease income (246,532 ) (739,593 ) Total lease cost $ 358,727 $ 1,075,477 Cash paid within operating cash flows $ 612,533 $ 1,840,023
Schedule of Future Minimum Operating Lease Payments	Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2019, excluding sublease income, were as follows: September 30, 2019 2019 $ 572,612 2020 2,339,810 2021 2,382,662 2022 and thereafter - Total lease payments $ 5,295,084 Less: Interest (485,150 ) Present value of lease liabilities $ 4,809,934

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: September 30, 2019 December 31, 2018 Accrued salaries, bonus, and benefits $ 1,481,466 $ 1,491,844 Accrued licenses and maintenance fees 483,879 577,389 Accrued warranties 146,468 149,464 Accrued taxes 204,679 192,268 Accrued professional services 216,938 489,017 Other 368,771 383,960 Total accrued liabilities 2,902,201 3,283,942 Less: Long term accrued liabilities (260,947 ) (641,461 ) Total current accrued liabilities $ 2,641,254 $ 2,642,481

Convertible Preferred Stock a_2

Convertible Preferred Stock and Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Stockholders' Equity Note [Abstract]
Summary of Option and Stock Appreciation Rights Activity	A summary of the option and stock appreciation rights activity for the nine month period ended September 30, 2019 is as follows: Number of Options/SARs Range of Exercise Price Weighted Average Exercise Price per Share Outstanding, December 31, 2018 1,165,086 $0.74 - $43.90 $ 2.54 Granted 992,000 $2.03 - $2.89 $ 2.04 Exercised (35,328 ) $0.74 - $2.15 $ 0.90 Forfeited (177,502 ) $0.74 - $43.90 $ 4.50 Outstanding, September 30, 2019 1,944,256 $0.74 - $36.20 $ 2.13
Summary of Restricted Stock Unit Activity	A summary of the restricted stock unit activity for the nine month period ended September 30, 2019 is as follows: Number of Weighted Average Outstanding, December 31, 2018 647,649 $ 0.83 Granted 420,000 $ 1.98 Vested (206,962 ) $ 1.36 Forfeited (16,600 ) $ 0.76 Outstanding, September 30, 2019 844,087 $ 1.28

Product Warranty Provisions (Ta

Product Warranty Provisions (Tables)	9 Months Ended
	Sep. 30, 2019
Product Warranties Disclosures [Abstract]
Schedule of Accrued Warranty	Accrued warranty, which is included in other accrued liabilities, consists of the following: September 30, 2019 December 31, 2018 Warranty accrual, beginning of the fiscal period $ 149,464 $ 164,365 Accrual adjustment for product warranty 41,023 34,253 Payments made (44,019 ) (49,154 ) Warranty accrual, end of the fiscal period $ 146,468 $ 149,464

Description of Business (Detail

Description of Business (Details Narrative)	Sep. 30, 2019Integer
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Installed base	125

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Remaining performance obligation	$ 1,000,000
Revenue recognized	5,400,000	$ 5,100,000
Capitalized contract acquisition costs	$ 300,000
Share-based compensation, requisite service period	4 years
Weighted average exercise price	$ 2.13		$ 2.54
Exercise price of warrants	$ 0.70
Series A Convertible Preferred Stock [Member]
Potential common shares excluded from diluted earnings per share	43,175,861
Series B Convertible Preferred Stock [Member]
Potential common shares excluded from diluted earnings per share	5,610,121
Warrant [Member]
Potential common shares excluded from diluted earnings per share	584,616
Exercise price of warrants	$ 0.70
Stock Options and Stock Appreciation Rights [Member]
Potential common shares excluded from diluted earnings per share	1,944,256
Weighted average exercise price	$ 2.13
Restricted Stock Units [Member]
Potential common shares excluded from diluted earnings per share	844,087
Revenue from System Delivery and Installation [Member]
Revenues percentage	8.00%	5.00%
Disposable Revenue [Member]
Revenues percentage	33.00%	33.00%
Royalty Revenue [Member]
Revenues percentage	10.00%	10.00%
Other Recurring Revenue [Member]
Revenues percentage	46.00%	52.00%
Sublease Revenue [Member]
Revenues percentage	3.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Revenue Disaggregated by Type (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Total revenue	$ 8,201,748	$ 7,555,479	$ 22,009,733	$ 22,078,512
Sublease	246,532		739,593
Systems [Member]
Total revenue	1,696,964	715,484	1,755,015	1,043,510
Disposables, Service and Accessories [Member]
Total revenue	$ 6,258,252	$ 6,839,995	$ 19,515,125	$ 21,035,002

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Summary of Contract Assets and Liabilities (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Total deferred revenue	$ 5,844,291	$ 6,232,687
Less: Long-term deferred revenue	(560,508)	(407,151)
Total current deferred revenue	5,283,783	5,825,536
Contract Assets - Unbilled Receivables [Member]
Total deferred revenue	314,494	251,867
Customer Deposits [Member]
Total deferred revenue	41,860	487,086
Product Shipped, Revenue Deferred [Member]
Total deferred revenue	645,199	645,199
Deferred Service and License Fees [Member]
Total deferred revenue	$ 5,157,232	$ 5,100,402

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accounting Policies [Abstract]
Net income (loss)	$ 43,748	$ (116,295)	$ (3,506,790)	$ 686,730
Cumulative dividend on convertible preferred stock	(360,647)	(361,447)	(1,071,351)	(1,072,553)
Net loss attributable to common stockholders	$ (316,899)	$ (477,742)	$ (4,578,141)	$ (385,823)
Weighted average number of common shares and equivalents:	64,294,153	59,008,219	61,405,083	49,733,553
Basic EPS	$ 0	$ (0.01)	$ (0.07)	$ (0.01)
Diluted EPS	$ 0	$ (0.01)	$ (0.07)	$ (0.01)

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 2,831,977	$ 2,686,870
Work in process	275,745	2,594
Finished goods	2,308,165	2,963,013
Reserve for obsolescence	(3,869,171)	(4,460,811)
Total inventory	$ 1,546,716	$ 1,191,666

Prepaid Expenses and Other As_3

Prepaid Expenses and Other Assets - Schedule of Prepaid Expenses and Other Assets (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 500,537	$ 401,972
Prepaid commissions	331,523	304,585
Deposits	404,304	455,508
Total prepaid expenses and other assets	1,236,364	1,162,065
Less: Noncurrent prepaid expenses and other assets	(214,042)	(198,365)
Total current prepaid expenses and other assets	$ 1,022,322	$ 963,700

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Gross property and equipment	$ 8,877,871	$ 9,424,004
Less: Accumulated depreciation	(8,607,120)	(9,080,311)
Net property and equipment	270,751	343,693
Equipment [Member]
Gross property and equipment	6,389,366	6,739,939
Leasehold Improvements [Member]
Gross property and equipment	$ 2,488,505	$ 2,684,065

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	Sep. 30, 2019	Jan. 02, 2019	Dec. 31, 2018
Operating Leased Assets [Line Items]
Weighted average discount rate for operating leases	9.00%
Weighted average remaining lease term for operating lease term	2 years 2 months 30 days
Right of use assets	$ 4,771,187
Undiscounted future cash flows to be received under the sublease 2019	200,000
Undiscounted future cash flows to be received under the sublease 2020	1,000,000
Undiscounted future cash flows to be received under the sublease 2021	$ 1,000,000
Accounting Standards Update 2016-02 [Member]
Operating Leased Assets [Line Items]
Right of use assets		$ 6,200,000

Leases - Schedule of Lease Cost

Leases - Schedule of Lease Costs and Other Lease Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Leases [Abstract]
Operating lease cost	$ 585,588		$ 1,756,759
Short-term lease cost	19,671		58,311
Sublease income	(246,532)		(739,593)
Total lease cost	358,727		1,075,477
Cash paid within operating cash flows	$ 612,533		$ 1,840,023

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Operating Lease Payments (Details)	Sep. 30, 2019USD ($)
Leases [Abstract]
2019	$ 572,612
2020	2,339,810
2021	2,382,662
2022 and thereafter
Total lease payments	5,295,084
Less: Interest	(485,150)
Present value of lease liabilities	$ 4,809,934

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued salaries, bonus, and benefits	$ 1,481,466	$ 1,491,844
Accrued licenses and maintenance fees	483,879	577,389
Accrued warranties	146,468	149,464	$ 164,365
Accrued taxes	204,679	192,268
Accrued professional services	216,938	489,017
Other	368,771	383,960
Total accrued liabilities	2,902,201	3,283,942
Less: Long term accrued liabilities	(260,947)	(641,461)
Total current accrued liabilities	$ 2,641,254	$ 2,642,481

Long-Term Debt and Credit Fac_2

Long-Term Debt and Credit Facilities (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total liquidity	$ 34,100,000
Cash and cash equivalents	31,650,559	$ 10,796,072
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity
Line of credit facility, current borrowing capacity	2,400,000
Revolving Credit Facility [Member] | Primary Lender [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 5,000,000
Revolving Credit Facility [Member] | Prime Rate [Member] | Primary Lender [Member]
Debt Instrument [Line Items]
Line of credit maturity date	Jun. 30, 2020
Line of credit interest rate	4.50%

Convertible Preferred Stock a_3

Convertible Preferred Stock and Stockholders' Equity (Details Narrative)	Aug. 07, 2019USD ($)$ / sharesshares	Mar. 05, 2018USD ($)$ / shares	May 23, 2017shares	May 24, 2016shares	Jun. 10, 2014shares	Jun. 05, 2013shares	Sep. 30, 2016$ / sharesshares	Sep. 30, 2019USD ($)Integer$ / sharesshares	Sep. 30, 2019USD ($)Integer$ / sharesshares	Sep. 30, 2018USD ($)	Dec. 31, 2018$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stockholders votes | Integer								1	1
Dividends declared | $
Dividends paid | $
Common stock, par value								$ 0.001	$ 0.001		$ 0.001
Preferred stock, par or stated value								0.001	0.001		$ 0.001
Exercise price of warrants								$ 0.70	$ 0.70
Warrants exercisable date									Sep. 29, 2021
Proceeds from warrant exercise | $										$ 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								3,203,531	3,203,531
Total compensation cost not yet recognized | $								$ 1,700,000	$ 1,700,000
Weighted average amortization period of total compensation cost not yet recognized									4 years
2012 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares authorized for issuance under the plan | shares			4,000,000	1,500,000	1,000,000	1,000,000
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants		$ 0.70
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants		$ 0.28
Series A Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, par or stated value							$ 1,000
Number of preferred stock issued | shares							24,000
Preferred stock, par value							$ 0.001
Preferred stock, conversion price							$ 0.65
Common stock issuable from warrants | shares							36,923,078
Preferred stock dividend rate							6.00%
Preferred stock redemption, triggering event, percent of common stock sold threshold							50.00%
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of preferred stock issued | shares
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants								$ 0.70	$ 0.70
Proceeds from warrant exercise | $		$ 10,000,000
Private Placement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net proceeds received | $	$ 23,100,000
Private Placement [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of stock, number of shares sold | shares	6,585,000
Common stock, par value	$ 0.001
Sale of stock, price per share	$ 2.05
Private Placement [Member] | Series B Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of stock, number of shares sold | shares	5,610,121
Preferred stock, par or stated value	$ 0.001
Conversion price per share	$ 2.05

Convertible Preferred Stock a_4

Convertible Preferred Stock and Stockholders' Equity - Summary of Option and Stock Appreciation Rights Activity (Details)	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options/SARs, Outstanding, Beginning Balance | shares	1,165,086
Number of Options/SARs, Granted | shares	992,000
Number of Options/SARs, Exercised | shares	(35,328)
Number of Options/SARs, Forfeited | shares	(177,502)
Number of Options/SARs, Outstanding, Ending Balance | shares	1,944,256
Weighted Average Exercise Price per Share, Outstanding, Beginning Balance	$ 2.54
Weighted Average Exercise Price per Share, Granted	2.04
Weighted Average Exercise Price per Share, Exercised	0.90
Weighted Average Exercise Price per Share, Forfeited	4.50
Weighted Average Exercise Price per Share, Outstanding, Ending Balance	2.13
Range One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Price, Lower Limit	0.74
Range of Exercise Price, Upper Limit	43.90
Range Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Price, Lower Limit	2.03
Range of Exercise Price, Upper Limit	2.89
Range Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Price, Lower Limit	0.74
Range of Exercise Price, Upper Limit	2.15
Range Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Price, Lower Limit	0.74
Range of Exercise Price, Upper Limit	43.90
Range Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Price, Lower Limit	0.74
Range of Exercise Price, Upper Limit	$ 36.20

Convertible Preferred Stock a_5

Convertible Preferred Stock and Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units [Member]	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted Stock Units, Outstanding, December 31, 2018 | shares	647,649
Number of Restricted Stock Units, Granted | shares	420,000
Number of Restricted Stock Units, Vested | shares	(206,962)
Number of Restricted Stock Units, Forfeited | shares	(16,600)
Number of Restricted Stock Units, Outstanding, June 30, 2019 | shares	844,087
Weighted Average Grant Date Fair Value per Unit, Outstanding, December 31, 2018 | $ / shares	$ 0.83
Weighted Average Grant Date Fair Value per Unit, Granted | $ / shares	1.98
Weighted Average Grant Date Fair Value per Unit, Vested | $ / shares	1.36
Weighted Average Grant Date Fair Value per Unit, Forfeited | $ / shares	0.76
Weighted Average Grant Date Fair Value per Unit, Outstanding, June 30, 2019 | $ / shares	$ 1.28

Product Warranty Provisions (De

Product Warranty Provisions (Details Narrative)	9 Months Ended
	Sep. 30, 2019
Product Warranties Disclosures [Abstract]
Standard product warranty coverage term	1 year

Product Warranty Provisions - S

Product Warranty Provisions - Schedule of Accrued Warranty (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Product Warranties Disclosures [Abstract]
Warranty accrual, beginning of the fiscal period	$ 149,464	$ 164,365
Accrual adjustment for product warranty	41,023	34,253
Payments made	(44,019)	(49,154)
Warranty accrual, end of the fiscal period	$ 146,468	$ 149,464