Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-36159 | |
Entity Registrant Name | STEREOTAXIS, INC. | |
Entity Central Index Key | 0001289340 | |
Entity Tax Identification Number | 94-3120386 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 710 North Tucker Boulevard | |
Entity Address, Address Line Two | Suite 110 | |
Entity Address, City or Town | St. Louis | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63101 | |
City Area Code | (314) | |
Local Phone Number | 678-6100 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | STXS | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 84,656,254 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 14,683 | $ 19,818 |
Restricted cash - current | 481 | 525 |
Accounts receivable, net of allowance of $640 and $672 at 2024 and 2023, respectively | 2,782 | 3,822 |
Inventories, net | 9,284 | 8,426 |
Prepaid expenses and other current assets | 842 | 676 |
Total current assets | 28,072 | 33,267 |
Property and equipment, net | 3,059 | 3,304 |
Restricted cash | 219 | |
Operating lease right-of-use assets | 4,767 | 4,982 |
Prepaid and other non-current assets | 116 | 137 |
Total assets | 36,014 | 41,909 |
Current liabilities: | ||
Accounts payable | 4,146 | 3,190 |
Accrued liabilities | 2,698 | 2,972 |
Deferred revenue | 4,950 | 6,657 |
Current portion of operating lease liabilities | 458 | 428 |
Total current liabilities | 12,252 | 13,247 |
Long-term deferred revenue | 2,121 | 1,637 |
Operating lease liabilities | 4,823 | 5,062 |
Other liabilities | 54 | 43 |
Total liabilities | 19,250 | 19,989 |
Series A - Convertible preferred stock: | ||
Convertible preferred stock, Series A, par value $0.001; 10,000,000 shares authorized, 21,683 and 22,358 shares outstanding at 2024 and 2023, respectively | 5,408 | 5,577 |
Stockholders’ equity: | ||
Common stock, par value $0.001; 300,000,000 shares authorized, 82,990,159 and 80,949,697 shares issued at 2024 and 2023, respectively | 83 | 81 |
Additional paid in capital | 559,499 | 554,148 |
Treasury stock, 4,015 shares at 2024 and 2023 | (206) | (206) |
Accumulated deficit | (548,020) | (537,680) |
Total stockholders’ equity | 11,356 | 16,343 |
Total liabilities and stockholders’ equity | $ 36,014 | $ 41,909 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 640 | $ 672 |
Series A convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Series A convertible preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Series A convertible preferred stock, shares outstanding | 21,683 | 22,358 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 82,990,159 | 80,949,697 |
Treasury stock, shares | 4,015 | 4,015 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||||
Total revenue | $ 4,502 | $ 7,859 | $ 11,382 | $ 14,407 |
Cost of revenue: | ||||
Total cost of revenue | 1,189 | 3,672 | 4,103 | 6,344 |
Gross margin | 3,313 | 4,187 | 7,279 | 8,063 |
Operating expenses: | ||||
Research and development | 2,273 | 2,647 | 4,516 | 5,393 |
Sales and marketing | 3,301 | 3,340 | 6,304 | 6,488 |
General and administrative | 3,760 | 3,477 | 7,226 | 7,078 |
Total operating expenses | 9,334 | 9,464 | 18,046 | 18,959 |
Operating loss | (6,021) | (5,277) | (10,767) | (10,896) |
Other income (expense) | (3) | 27 | (3) | 27 |
Interest income, net | 191 | 293 | 430 | 565 |
Net loss | (5,833) | (4,957) | (10,340) | (10,304) |
Cumulative dividend on convertible preferred stock | (325) | (335) | (656) | (666) |
Net loss attributable to common stockholders | $ (6,158) | $ (5,292) | $ (10,996) | $ (10,970) |
Net loss per share attributable to common stockholders: | ||||
Basic | $ (0.07) | $ (0.07) | $ (0.13) | $ (0.14) |
Diluted | $ (0.07) | $ (0.07) | $ (0.13) | $ (0.14) |
Weighted average number of common shares and equivalents: | ||||
Basic | 84,570,738 | 81,049,211 | 84,025,335 | 78,787,652 |
Diluted | 84,570,738 | 81,049,211 | 84,025,335 | 78,787,652 |
Systems [Member] | ||||
Revenue: | ||||
Total revenue | $ 240 | $ 3,313 | $ 2,852 | $ 5,134 |
Cost of revenue: | ||||
Total cost of revenue | 187 | 2,703 | 2,087 | 4,400 |
Disposables Service and Accessories [Member] | ||||
Revenue: | ||||
Total revenue | 4,262 | 4,546 | 8,530 | 9,273 |
Cost of revenue: | ||||
Total cost of revenue | $ 1,002 | $ 969 | $ 2,016 | $ 1,944 |
Statements of Convertible Prefe
Statements of Convertible Preferred Stock and Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Convertible Preferred Stock Series A [Member] | Convertible Preferred Stock Series B [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, Common [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2022 | $ 5,583 | $ 6 | $ 75 | $ 543,438 | $ (206) | $ (516,967) | $ 26,346 |
Balance, shares at Dec. 31, 2022 | 22,383 | 5,610,121 | 74,874,459 | ||||
Stock issued for the exercise of stock options | (18) | (18) | |||||
Stock issued for the exercise of stock options, shares | 29,384 | ||||||
Stock-based compensation | 5,314 | 5,314 | |||||
Stock-based compensation, shares | 144,054 | ||||||
Components of net loss | (10,304) | (10,304) | |||||
Employee stock purchase plan | 48 | 48 | |||||
Employee stock purchase plan, shares | 24,568 | ||||||
Preferred stock conversion | $ (6) | $ 6 | |||||
Preferred stock conversion, shares | (5,610,121) | 5,610,121 | |||||
Balance at Jun. 30, 2023 | $ 5,583 | $ 81 | 548,782 | (206) | (527,271) | 21,386 | |
Balance, shares at Jun. 30, 2023 | 22,383 | 80,682,586 | |||||
Balance at Mar. 31, 2023 | $ 5,583 | $ 6 | $ 75 | 546,149 | (206) | (522,314) | 23,710 |
Balance, shares at Mar. 31, 2023 | 22,383 | 5,610,121 | 75,059,499 | ||||
Stock issued for the exercise of stock options | (52) | (52) | |||||
Stock issued for the exercise of stock options, shares | 196 | ||||||
Stock-based compensation | 2,660 | 2,660 | |||||
Stock-based compensation, shares | |||||||
Components of net loss | (4,957) | (4,957) | |||||
Employee stock purchase plan | 25 | 25 | |||||
Employee stock purchase plan, shares | 12,770 | ||||||
Preferred stock conversion | $ (6) | $ 6 | |||||
Preferred stock conversion, shares | (5,610,121) | 5,610,121 | |||||
Balance at Jun. 30, 2023 | $ 5,583 | $ 81 | 548,782 | (206) | (527,271) | 21,386 | |
Balance, shares at Jun. 30, 2023 | 22,383 | 80,682,586 | |||||
Balance at Dec. 31, 2023 | $ 5,577 | $ 81 | 554,148 | (206) | (537,680) | 16,343 | |
Balance, shares at Dec. 31, 2023 | 22,358 | 80,949,697 | |||||
Stock issued for the exercise of stock options | 12 | 12 | |||||
Stock issued for the exercise of stock options, shares | 11,763 | ||||||
Stock-based compensation | 5,127 | 5,127 | |||||
Stock-based compensation, shares | 504,375 | ||||||
Components of net loss | (10,340) | (10,340) | |||||
Employee stock purchase plan | 46 | 46 | |||||
Employee stock purchase plan, shares | 23,022 | ||||||
Preferred stock conversion | $ (169) | $ 2 | 166 | 168 | |||
Preferred stock conversion, shares | (675) | 1,501,302 | |||||
Balance at Jun. 30, 2024 | $ 5,408 | $ 83 | 559,499 | (206) | (548,020) | 11,356 | |
Balance, shares at Jun. 30, 2024 | 21,683 | 82,990,159 | |||||
Balance at Mar. 31, 2024 | $ 5,464 | $ 82 | 556,878 | (206) | (542,187) | 14,567 | |
Balance, shares at Mar. 31, 2024 | 21,908 | 82,132,777 | |||||
Stock issued for the exercise of stock options | 4 | 4 | |||||
Stock issued for the exercise of stock options, shares | 2,213 | ||||||
Stock-based compensation | 2,538 | 2,538 | |||||
Stock-based compensation, shares | 342,901 | ||||||
Components of net loss | (5,833) | (5,833) | |||||
Employee stock purchase plan | 24 | 24 | |||||
Employee stock purchase plan, shares | 9,634 | ||||||
Preferred stock conversion | $ (56) | $ 1 | 55 | 56 | |||
Preferred stock conversion, shares | (225) | 502,634 | |||||
Balance at Jun. 30, 2024 | $ 5,408 | $ 83 | $ 559,499 | $ (206) | $ (548,020) | $ 11,356 | |
Balance, shares at Jun. 30, 2024 | 21,683 | 82,990,159 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||||
Net loss | $ (5,833) | $ (4,957) | $ (10,340) | $ (10,304) |
Adjustments to reconcile net loss to cash used in operating activities: | ||||
Depreciation | 276 | 310 | ||
Non-cash lease expense | 6 | 16 | ||
Stock-based compensation | 5,127 | 5,314 | ||
Accretion and short-term investment discount | (287) | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 1,040 | (1,555) | ||
Inventories | (858) | 173 | ||
Prepaid expenses and other current assets | (166) | 217 | ||
Other assets | 21 | 54 | ||
Accounts payable | 946 | (143) | ||
Accrued liabilities | (274) | (386) | ||
Deferred revenue | (1,223) | 866 | ||
Other liabilities | 11 | (8) | ||
Net cash used in operating activities | (5,434) | (5,733) | ||
Cash flows from investing activities | ||||
Purchase of property and equipment | (22) | (356) | ||
Proceeds from maturity of short-term investments | 20,131 | |||
Net cash (used in) provided by investing activities | (22) | 19,775 | ||
Cash flows from financing activities | ||||
Proceeds from issuance of stock, net of issuance costs | 58 | 30 | ||
Net cash provided by financing activities | 58 | 30 | ||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (5,398) | 14,072 | ||
Cash, cash equivalents, and restricted cash at beginning of period | 20,562 | 9,855 | ||
Cash, cash equivalents, and restricted cash at end of period | 15,164 | 23,927 | 15,164 | 23,927 |
Supplemental disclosure of cash flow information: | ||||
Purchase of property and equipment included in accounts payable | 10 | 17 | ||
Reconciliation of cash, cash equivalents, and restricted cash to balance sheet as of June 30th: | ||||
Cash and cash equivalents | 14,683 | 22,877 | 14,683 | 22,877 |
Restricted cash - current | 481 | 569 | 481 | 569 |
Restricted cash | 481 | 481 | ||
Total cash, cash equivalents, and restricted cash | $ 15,164 | $ 23,927 | $ 15,164 | $ 23,927 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business Stereotaxis designs, manufactures and markets robotic systems, instruments and information systems for the interventional laboratory. Our proprietary robotic technology, Robotic Magnetic Navigation, fundamentally transforms endovascular interventions using precise computer-controlled magnetic fields to directly control the tip of flexible interventional catheters or devices. Direct control of the tip of an interventional device, in contrast to all manual hand-held devices that are controlled from their handle, can improve the precision, stability, reach and safety of these devices during procedures. Our primary clinical focus has been electrophysiology, specifically cardiac ablation procedures for the treatment of arrhythmias. Cardiac ablation has become a well-accepted therapy for arrhythmias and a multi-billion-dollar medical device market with expectations for substantial long-term growth. Our product strategy is to expand the clinical focus of our technology to several additional endovascular indications including coronary, neuro, and peripheral interventions. There is substantial real-world evidence and clinical literature for Robotic Magnetic Navigation in electrophysiology. Hundreds of electrophysiologists at over one hundred hospitals globally have treated over 100,000 arrhythmia patients with our robotic technology. Clinical use of our technology has been documented in over 500 clinical publications. Robotic Magnetic Navigation is designed to enable physicians to complete more complex interventional procedures with greater success and safety by providing image-guided delivery of catheters through the blood vessels and chambers of the heart to treatment sites. This is achieved using externally applied computer-controlled magnetic fields that govern the motion of the working tip of the catheter, resulting in improved navigation. The more flexible atraumatic design of catheters driven using magnetic fields may reduce the risk of patient harm and other adverse events. Performing the procedure from a control cockpit enables physicians to complete procedures in a safe location protected from x-ray exposure, with greater ergonomics, and improved efficiency. We believe these benefits can be applicable in other endovascular indications where navigation through complex vasculature is often challenging or unsuccessful and generates significant x-ray exposure, and we are investing in research and development in these areas. Our primary products include the Genesis RMN Odyssey The Genesis RMN System The Odyssey Solution Odyssey Cinema, We have arrangements with fluoroscopy system manufacturers to provide such systems in a bundled purchase offer for hospitals establishing robotic interventional operating rooms. These are single-plane, full-power x-ray systems and include the c-arm and powered table. The combination of RMN Systems with our partnered x-ray systems reduces the cost of acquisition, the ongoing cost of ownership, and the complexity of installation of a robotic electrophysiology practice. 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 the 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. We have received regulatory clearances and approvals necessary for us to market the Genesis RMN Niobe Odyssey Cardiodrive We have strategic relationships with technology leaders and innovators in the global interventional market. Through these strategic relationships we provide compatibility between our robotic magnetic navigation system, x-ray systems, 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 compatible systems and devices 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all the disclosures required by GAAP 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, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024, 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, 2023, as filed with the Securities and Exchange Commission (SEC) on March 8, 2024. Risks and Uncertainties Future results of operations could be materially adversely impacted by macroeconomic and geopolitical factors. The Company continues to experience difficulties with periodic worldwide supply chain disruptions, including shortages and inflationary pressures, and logistics delays which make it difficult for us to source parts and ship our products. We have generally been able to conduct normal business activities albeit in a more deliberate manner than prior to the pandemic, including taking action to increase inventory levels and engaging in discussions with our vendors on contractual obligations, but we cannot guarantee that they will not be impacted more severely in the future. Our suppliers and contract manufacturers have experienced, and may continue to experience, similar difficulties. If our manufacturing operations or supply chains are materially interrupted, it may not be possible for us to timely manufacture or service our products at required levels, or at all. Changes in economic conditions and supply chain constraints could lead to higher inflation than previously experienced or expected, which could, in turn, lead to an increase in costs. We may be unable to raise the prices of our products sufficiently to keep up with the rate of inflation. A material reduction or interruption in any of our manufacturing processes or a substantial increase in costs would have a material adverse effect on our business, operating results, and financial condition. Many of our hospital customers, for whom the purchase of our system involves a significant capital purchase which may be part of a larger construction project at the customer site (typically the construction of a new building), may themselves be under economic pressures. Hospitals continue to experience challenges with staffing and cost pressures as supply chain constraints and inflation drive up operating costs. This may cause delays or cancellations of current purchase orders and other commitments and may exacerbate the long and variable sales and installation cycles for our robotic magnetic navigation systems. Our hospital customers have also experienced challenges in sourcing supplies, such as catheters, needed to perform procedures. Such shortages have, and may continue to, put pressure on procedures and our disposable revenue. Any disruption to the capital markets could negatively impact our ability to raise capital. If the capital markets are disrupted for an extended period of time and we need to raise additional capital, such capital may not be available on acceptable terms, or at all. Disruptions to the capital markets and other financing sources could also negatively impact our hospital customers’ ability to raise capital or otherwise obtain financing to fund their operations and capital projects. Such could result in delayed spending on current projects, a longer sales cycle for new projects where a large capital commitment is required, and decreased demand for our disposable products as well as an increased risk of customer defaults or delays in payments for our system installations, service contracts and disposable products. In addition to the aforementioned macroeconomic factors, the COVID-19 pandemic negatively affected, and any resurgence of a variant of COVID-19 or any similar occurrences may in the future negatively affect demand for both our systems and our disposable products. In the past, we have experienced business disruptions, including travel restrictions on us and our third-party distributors, which negatively affected our complex sales, marketing, installation, distribution and service network relating to our products and services. We also experienced reductions in demand for our disposable products as our healthcare customers (physicians and hospitals) re-prioritized the treatment of patients and diverted resources away from non-coronavirus areas, leading to the performance of fewer procedures in which our disposable products are used. Significant decreases to our capital or recurring revenues could have a material adverse effect on our business, operating results, and financial condition. While we cannot reliably estimate the ultimate duration of the impact or the severity of ongoing periodic resurgences of pandemic-related issues, we continue to anticipate periodic disruptions to our manufacturing operations, supply chains, procedures volumes, service activities, and capital system orders and placements, any of which could have a material adverse effect on our business, financial condition, results of operations, or cash flows. The impact has varied widely over time by individual geography. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents and marketable securities. Our investments may include, at any time, a diversified portfolio of cash equivalents and short- and long-term investments in a variety of high-quality securities, including money market funds, U.S. treasury and U.S. government agency securities, corporate notes and bonds, commercial paper, non-U.S. government agency securities, and municipal notes. The Company’s exposure to any individual corporate entity is limited by policy. Deposits may exceed federally insured limits, and the Company is exposed to credit risk on deposits in the event of default by the financial institutions to the extent account balances exceed the amount insured by the Federal Deposit Insurance Corporation (FDIC). The Company closely monitors events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions or other companies in the financial services industry or the financial services industry generally, including Silicon Valley Bank. On March 10, 2023, Silicon Valley Bank (“SVB”), where the Company maintained accounts with a cash balance of less than 6% of the Company’s total cash, cash equivalents and marketable securities, was closed by the California Department of Financial Protection and Innovation and the FDIC was appointed as receiver. On March 12, 2023, the U.S. Department of the Treasury, Federal Reserve Board, and FDIC released a joint statement announcing that the FDIC would complete its resolution of SVB in a manner that fully protected all depositors at SVB and that depositors would have access to all of their money starting March 13, 2023. On March 26, 2023, it was announced that First-Citizens Bank & Trust Company would assume all of SVB’s deposits and loans as of March 27, 2023. During the periods presented, the Company has not experienced any losses on its deposits of cash, cash equivalents or marketable securities. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, money market instruments, and other highly liquid investments with original maturities of three months or less from the date of purchase. Accrued interest receivable on money market instruments, included in other current assets, was less than $ 0.1 Restricted Cash Restricted cash primarily consists of cash that the Company is obligated to maintain in accordance with contractual obligations. The Company’s restricted cash was $ 0.5 0.7 Investments Our investments may include, at any time, a diversified portfolio of cash equivalents and short-and long-term investments in a variety of high-quality securities, including money market funds, U.S. treasury and U.S. government agency securities, corporate notes and bonds, commercial paper, non-U.S. government agency securities, and municipal notes. As of June 30, 2024, and December 31, 2023, the Company had no Amortized cost of U.S. treasury securities and marketable debt securities are based on the Company’s purchase price adjusted for accrual of discount, or amortization of premium, and recognition of impairment charges, if any. The amortized cost of securities the Company purchases at a discount or premium will equal the face or par value at maturity or the call date, if applicable. Stated interest on investments is reported as income when earned and is adjusted for amortization or accretion of any premium or discount. The Company segments its portfolio based on the underlying risk profiles of the securities and has a zero-loss expectation for U.S. treasury and U.S. government agency securities. The Company regularly reviews the securities using the probability of default method and analyzes the unrealized loss positions and evaluates the current expected credit loss by considering factors such as credit ratings, issuer-specific factors, current economic conditions, and reasonable and supportable forecasts. The Company did not have any material expected credit losses on investments or material expected credit losses on accrued interest related to investments during the six months ended June 30, 2024, or year ended December 31, 2023. Fair Value Measurements Financial instruments consist of cash and cash equivalents, restricted cash, investments, accounts receivable, and accounts payable. The Company measures certain financial assets and liabilities at fair value on a recurring basis. General accounting principles for fair value measurement establishes 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. As of June 30, 2024, and December 31, 2023, financial assets classified as Level 2 consisted of money market funds. The Company reviews trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data. This approach results in the Level 2 classification of these securities within the fair value hierarchy. Accounts Receivable, Contract Assets, and Allowance for Credit Losses Accounts receivable primarily include amounts due from hospitals and distributors for acquisition of magnetic systems, associated disposable device sales and service contracts, net of allowances for expected credit losses. Credit is granted on a limited basis, with balances due generally within 30 days of billing. 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. The Company reports accounts receivable and contract assets net of an allowance for expected credit losses in accordance with Accounting Standards Codification Topic 326, Financial Instruments – Credit Losses (“ASC 326”). The provision for credit loss is based upon management’s assessment of historical and expected net collections considering business and economic conditions and other collection indicators. We assess collectability by reviewing the accounts receivable aging schedule on an aggregated basis where similar characteristics exist and on an individual basis when we identify specific customers with known disputes or collectability issues. Amounts deemed uncollectible are recorded as an allowance for expected credit losses. Revenue and Costs of Revenue The Company accounts for revenue in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers We generate revenue from the 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 of various devices as provided by co-development and co-placement arrangements, 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 arrangements with multiple performance obligations, 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 if necessary. Our revenue recognition policy affects the following revenue streams in our business as follows: Systems: Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation, service-type warranty, 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 service-type warranties and the implied obligation to deliver software enhancements if and when available is included in Other Recurring Revenue and is recognized ratably typically over the first year following installation of the system as the customer receives the service-type warranty and right to software updates throughout the period. The Company’s system contracts generally do not provide a right of return. Systems may be covered by a one-year assurance-type warranty in lieu of a service-type warranty. Assurance-type warranty costs were less than $ 0.1 25 36 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 six months ended June 30, 2024, and 2023. Disposable revenue represented 28 22 Royalty: The Company receives royalties on the sale of various devices as provided by co-development and co-placement arrangements with various manufacturers. Royalty revenue represented less than 1 Other Recurring Revenue: Other recurring revenue includes revenue from product maintenance plans, service-type warranties, other post warranty maintenance, and the implied obligation to provide software enhancements if and when available for a specified period, typically one year following installation of our systems. Revenue from services and software enhancements, service-type warranties, and the implied obligation to provide software enhancements are 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 47 41 The following table summarizes the Company’s revenue for systems, disposables, and service and accessories for the six months ended June 30, 2024, and 2023 (in thousands): Schedule of Revenue Disaggregated by Type 2024 2023 2024 2023 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Systems $ 240 $ 3,313 $ 2,852 $ 5,134 Disposables, service and accessories 4,262 4,546 8,530 9,273 Total revenue $ 4,502 $ 7,859 $ 11,382 $ 14,407 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 $ 15.3 The following table summarizes the Company’s contract assets and liabilities (in thousands): Summary of Contract Assets and Liabilities June 30, 2024 December 31, 2023 Contract Assets - unbilled receivables $ 116 $ 72 Customer deposits $ 1,845 $ 2,105 Product shipped, revenue deferred 1,371 1,413 Deferred service and license fees 3,855 4,776 Total deferred revenue $ 7,071 $ 8,294 Less: Long-term deferred revenue (2,121 ) (1,637 ) Total current deferred revenue $ 4,950 $ 6,657 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. Customer deposits primarily relate to future system sales but can also include deposits on disposable sales. 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, 2024, and 2023, that was included in the deferred revenue balance at the beginning of each reporting period was $ 4.3 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 were $ 0.1 Costs of systems revenue include direct product costs, installation labor and other costs including estimated assurance-type warranty costs, and initial training costs, when applicable. These costs are recognized at the time of sale. Costs of disposable revenue include direct product costs and estimated warranty costs and are recognized at the time of sale. Cost of revenue from services and license fees are recognized when incurred. Leasing Arrangements 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. The Company accounts for leases in accordance with Accounting Standards Update No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842 (“ASC 842”). The Company determines if an arrangement contains a lease at inception. The Company leases its facilities under operating leases. In accordance with ASC 842, operating lease agreements are recognized on the balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability. These leases generally 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. 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. Stock-Based Compensation The Company accounts for its grants of stock options, non-qualified stock options, stock appreciation rights, restricted shares, 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 stock-based compensation at the grant date and the recognition of the related expense over the period in which the stock-based compensation vests. For time-based awards, 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 weighted average assumptions and fair value for options granted during the six months ended June 30, 2024, were 1) expected dividend rate of 0 76 6.25 For market-based awards, stock-based compensation expense is recognized over the minimum service period regardless of whether or not the market target is probable of being achieved. The fair value of such awards is estimated on the grant date using Monte Carlo simulations. Shares purchased by employees under the 2022 Employee Stock Purchase Plans are considered to be non-compensatory. Net Loss per Common Share Basic earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average 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 (in thousands except for share and per share amounts): Schedule of Computation of Basic and Diluted Earnings Per Share 2024 2023 2024 2023 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net loss $ (5,833 ) $ (4,957 ) $ (10,340 ) $ (10,304 ) Cumulative dividend on convertible preferred stock (325 ) (335 ) (656 ) (666 ) Net loss attributable to common stockholders $ (6,158 ) $ (5,292 ) $ (10,996 ) $ (10,970 ) Weighted average number of common shares and equivalents: 84,570,738 81,049,211 84,025,335 78,787,652 Basic EPS $ (0.07 ) $ (0.07 ) $ (0.13 ) $ (0.14 ) Diluted EPS $ (0.07 ) $ (0.07 ) $ (0.13 ) $ (0.14 ) The Company did not include any portion of unearned restricted shares, outstanding options, stock appreciation rights, warrants or convertible preferred stock in the calculation of diluted loss per common share because all such securities are anti-dilutive for all periods presented. The application of the two-class method of computing earnings per share under general accounting principles for participating securities is not applicable during these periods because those securities do not contractually participate in its losses. As of June 30, 2024, the Company had 4,103,847 3.77 48,882,491 1,399,157 no Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as “CECL.” The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The Company adopted the standard in the first quarter of 2023. The impact to the Company’s financial results was immaterial. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires enhanced income tax disclosures, primarily related to the effective tax rate reconciliation and income taxes paid. The Company does not expect a significant impact on its income tax disclosures upon adoption of the ASU which will be effective in the Company’s year ending December 31, 2025. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 3. Financial Instruments The following tables summarize the Company’s cash and fair value by significant category reported as cash and cash equivalents and restricted cash as of June 30, 2024, and December 31, 2023: Schedule of Cash and Cash Equivalents, Restricted Cash and Investments June 30, 2024 Valuation Reported as: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Restricted Cash- current Short-term Investments Restricted Cash Cash $ 1,726 $ - $ - $ 1,726 $ 1,726 $ - $ - $ - Level 2 Money market funds 13,438 - - 13,438 12,957 481 - - Subtotal 13,438 - - 13,438 12,957 481 - - Total assets measured at fair value $ 15,164 $ - $ - $ 15,164 $ 14,683 $ 481 $ - $ - December 31, 2023 Valuation Reported as: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Restricted Cash- current Short-term Investments Restricted Cash Cash $ 2,122 $ - $ - $ 2,122 $ 2,122 $ - $ - $ - Level 2 Money market funds 18,440 - - 18,440 17,696 525 - 219 Subtotal 18,440 - - 18,440 17,696 525 - 219 Total assets measured at fair value $ 20,562 $ - $ - $ 20,562 $ 19,818 $ 525 $ - $ 219 Interest income was approximately $ 0.4 1.1 As of June 30, 2024, and December 31, 2023, the Company did not have any financial assets classified as Level 1 or Level 3 nor did the Company have financial liabilities valued at fair value on a recurring basis. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consist of the following (in thousands): Schedule of Inventories June 30, 2024 December 31, 2023 Raw materials $ 6,064 $ 5,918 Work in process 1,112 1,034 Finished goods 4,111 3,413 Reserve for excess and obsolescence (2,003 ) (1,939 ) Total inventory $ 9,284 $ 8,426 The reserve for excess and obsolescence primarily includes Niobe Systems and related raw materials and spare parts. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets | 5. Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following (in thousands): Schedule of Prepaid Expenses and Other Assets June 30, 2024 December 31, 2023 Prepaid expenses $ 297 $ 181 Prepaid commissions 97 110 Deposits 467 424 Other assets 97 98 Total prepaid expenses and other assets 958 813 Less: Noncurrent prepaid expenses and other assets (116 ) (137 ) Total current prepaid expenses and other assets $ 842 $ 676 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and Equipment consist of the following (in thousands): Schedule of Property and Equipment June 30, 2024 December 31, 2023 Equipment $ 4,288 $ 4,269 Leasehold improvements 2,911 2,911 Gross property and equipment 7,199 7,180 Less: Accumulated depreciation (4,140 ) (3,876 ) Net property and equipment $ 3,059 $ 3,304 The Company had less than $ 0.1 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases | |
Leases | 7. Leases On March 1, 2021, the Company entered into an office lease agreement (the “Lease”) with Globe Building Company (the “Landlord”), under which the Company leases executive office space and manufacturing facilities of approximately 43,100 ten years two five years 0.8 1.0 As of June 30, 2024, the weighted average discount rate for operating leases was 9 7.49 The following table represents lease costs and other lease information (in thousands): Schedule of Lease Costs and Other Lease Information 2024 2023 2024 2023 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 227 $ 227 $ 454 $ 454 Short-term lease cost 5 4 8 8 Total net lease cost $ 232 $ 231 $ 462 $ 462 Cash paid within operating cash flows $ 253 $ 245 $ 510 $ 486 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 June 30, 2024, were as follows (in thousands): Schedule of Future Minimum Operating Lease Payments June 30, 2024 2024 $ 449 2025 919 2026 935 2027 956 2028 976 2029 and thereafter 3,054 Total lease payments 7,289 Less: Interest (2,008 ) Present value of lease liabilities $ 5,281 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities Accrued liabilities consist of the following (in thousands): Schedule of Accrued Liabilities June 30, 2024 December 31, 2023 Accrued salaries, bonus, and benefits $ 1,230 $ 1,222 Accrued licenses and maintenance fees - 484 Accrued warranties 83 107 Accrued professional services 176 138 Accrued investigational sites 101 - Deferred contract obligation 1,045 1,045 Other 117 19 Total accrued liabilities 2,752 3,015 Less: Long term accrued liabilities (54 ) (43 ) Total current accrued liabilities $ 2,698 $ 2,972 The Company reversed an aged accrued regulatory fee of approximately $ 0.5 |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [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 No Series A Convertible Preferred Stock and Warrants In September 2016, the Company issued (i) 24,000 0.001 1,000 0.65 36,923,078 6 1,000 50 2021 CEO Performance Award Unit Grant On February 23, 2021, the Company`s Board of Directors, upon recommendation of the Compensation Committee, approved the grant of the CEO Performance Award to the Company’s Chief Executive Officer. The CEO Performance award is a 10 13,000,000 As detailed in the table below, the CEO Performance Award consists of ten vesting tranches. The first market capitalization milestone is $ 1.0 500 5.5 Summary of Performance Award And Market Capitalization Milestones Tranche # No. of Shares Subject to PSU Market Capitalization Milestones (1) 1 1,000,000 $ 1,000,000,000 2 1,500,000 $ 1,500,000,000 3 1,500,000 $ 2,000,000,000 4 2,000,000 $ 2,500,000,000 5 1,000,000 $ 3,000,000,000 6 1,000,000 $ 3,500,000,000 7 1,000,000 $ 4,000,000,000 8 2,000,000 $ 4,500,000,000 9 1,000,000 $ 5,000,000,000 10 1,000,000 $ 5,500,000,000 Total: 13,000,000 Each tranche represents a portion of the PSUs covering the number of shares outlined in the table above. Each tranche vests upon (i) satisfaction of the market capitalization milestones and (ii) continued employment as CEO of the Company from the grant date through December 31, 2030. Absent an earlier termination, the PSUs will expire on December 31, 2030. If our CEO ceases employment as CEO of the Company for any reason including death, disability, termination for cause or without cause (as defined in the award agreement), or if he voluntary terminates after service as CEO for at least five years, the remaining service period will be waived and he will retain any PSUs that have vested through the date of termination The Company received Shareholder approval at its annual meeting on May 20, 2021, for shares to be issued under the award. The market capitalization requirement is considered a market condition under FASB Accounting Standards Codification Topic 718 “Compensation – Stock Compensation” and is estimated on the grant date using Monte Carlo simulations. Recognition of stock-based compensation expense of all the tranches commenced on February 23, 2021, the date of grant, as the probability of meeting the ten market capitalization milestones is not considered in determining the timing of expense recognition. The expense will be recognized on an accelerated basis through 2030. Key assumptions for estimating the performance-based awards fair value at the date of grant included share price on grant date, volatility of the Company’s common stock price, risk free interest rate, and grant term. Total stock-based compensation recorded as operating expense for the CEO Performance Award was $ 3.6 3.5 33.4 40.6 Stock Award Plans In February 2022, the Compensation Committee of the Board of Directors adopted the 2022 Stock Incentive Plan (the “Plan”) which was subsequently approved by the Company’s shareholders. This plan replaced the 2012 Stock Incentive Plan which expired on May 19, 2022 At June 30, 2024, the Company had 5,633,730 At June 30, 2024, the total compensation cost related to options and non-vested stock granted to employees and non-employees under the Company’s stock award plans but not yet recognized was approximately $ 3.6 four years A summary of the option and stock appreciation rights activity for the six-month period ended June 30, 2024, is as follows: Summary of Option and Stock Appreciation Rights Activity Number of Options/SARs Range of Exercise Price Weighted Average Exercise Price per Share Outstanding, December 31, 2023 3,650,115 $ 0.74 9.87 $ 3.93 Granted 716,500 $ 2.45 3.01 $ 3.00 Exercised (11,763 ) $ 0.74 2.57 $ 1.02 Forfeited (251,005 ) $ 0.74 9.20 $ 3.99 Outstanding, June 30, 2024 4,103,847 $ 0.74 9.87 $ 3.77 A summary of the restricted stock unit activity for the six-month period ended June 30, 2024, is as follows: Schedule of Restricted Stock Unit Activity Number of Restricted Stock Units Weighted Average Grant Date Fair Value per Unit Outstanding, December 31, 2023 1,502,131 $ 3.94 Granted 389,610 $ 1.54 Vested (492,584 ) $ 3.03 Outstanding, June 30, 2024 1,399,157 $ 3.60 |
Product Warranty Provisions
Product Warranty Provisions | 6 Months Ended |
Jun. 30, 2024 | |
Guarantees and Product Warranties [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 with an assurance or a service-type warranty. 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 assurance-type warranty, which is included in other accrued liabilities, consists of the following (in thousands): Schedule of Accrued Warranty June 30, 2024 December 31, 2023 Warranty accrual, beginning of the fiscal period $ 107 $ 163 Accrual adjustment for product warranty (8 ) 547 Payments made (16 ) (603 ) Warranty accrual, end of the fiscal period $ 83 $ 107 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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. In February 2024, a vendor filed financing statements under the Uniform Commercial Code (“UCC”) on underlying inventory for approximately $ 0.6 In April 2021, the Company entered into a letter of credit pursuant to the Lease agreement totaling approximately $ 1.8 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events On July 31, 2024, the Company completed its previously announced acquisition of all the shares of capital stock of Access Point Technologies EP, Inc., a Minnesota corporation (“APT”), from APT Holding Company, Inc., a Minnesota corporation, pursuant to that certain Share Purchase Agreement, dated May 11, 2024. APT, based in Rogers, Minnesota, designs, manufactures, and commercializes a portfolio of differentiated high-quality diagnostic catheters used during cardiac ablation procedures that are commercially available across key global geographies. At closing, the Company issued 1,486,620 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements of Stereotaxis, Inc. have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all the disclosures required by GAAP 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, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024, 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, 2023, as filed with the Securities and Exchange Commission (SEC) on March 8, 2024. |
Risks and Uncertainties | Risks and Uncertainties Future results of operations could be materially adversely impacted by macroeconomic and geopolitical factors. The Company continues to experience difficulties with periodic worldwide supply chain disruptions, including shortages and inflationary pressures, and logistics delays which make it difficult for us to source parts and ship our products. We have generally been able to conduct normal business activities albeit in a more deliberate manner than prior to the pandemic, including taking action to increase inventory levels and engaging in discussions with our vendors on contractual obligations, but we cannot guarantee that they will not be impacted more severely in the future. Our suppliers and contract manufacturers have experienced, and may continue to experience, similar difficulties. If our manufacturing operations or supply chains are materially interrupted, it may not be possible for us to timely manufacture or service our products at required levels, or at all. Changes in economic conditions and supply chain constraints could lead to higher inflation than previously experienced or expected, which could, in turn, lead to an increase in costs. We may be unable to raise the prices of our products sufficiently to keep up with the rate of inflation. A material reduction or interruption in any of our manufacturing processes or a substantial increase in costs would have a material adverse effect on our business, operating results, and financial condition. Many of our hospital customers, for whom the purchase of our system involves a significant capital purchase which may be part of a larger construction project at the customer site (typically the construction of a new building), may themselves be under economic pressures. Hospitals continue to experience challenges with staffing and cost pressures as supply chain constraints and inflation drive up operating costs. This may cause delays or cancellations of current purchase orders and other commitments and may exacerbate the long and variable sales and installation cycles for our robotic magnetic navigation systems. Our hospital customers have also experienced challenges in sourcing supplies, such as catheters, needed to perform procedures. Such shortages have, and may continue to, put pressure on procedures and our disposable revenue. Any disruption to the capital markets could negatively impact our ability to raise capital. If the capital markets are disrupted for an extended period of time and we need to raise additional capital, such capital may not be available on acceptable terms, or at all. Disruptions to the capital markets and other financing sources could also negatively impact our hospital customers’ ability to raise capital or otherwise obtain financing to fund their operations and capital projects. Such could result in delayed spending on current projects, a longer sales cycle for new projects where a large capital commitment is required, and decreased demand for our disposable products as well as an increased risk of customer defaults or delays in payments for our system installations, service contracts and disposable products. In addition to the aforementioned macroeconomic factors, the COVID-19 pandemic negatively affected, and any resurgence of a variant of COVID-19 or any similar occurrences may in the future negatively affect demand for both our systems and our disposable products. In the past, we have experienced business disruptions, including travel restrictions on us and our third-party distributors, which negatively affected our complex sales, marketing, installation, distribution and service network relating to our products and services. We also experienced reductions in demand for our disposable products as our healthcare customers (physicians and hospitals) re-prioritized the treatment of patients and diverted resources away from non-coronavirus areas, leading to the performance of fewer procedures in which our disposable products are used. Significant decreases to our capital or recurring revenues could have a material adverse effect on our business, operating results, and financial condition. While we cannot reliably estimate the ultimate duration of the impact or the severity of ongoing periodic resurgences of pandemic-related issues, we continue to anticipate periodic disruptions to our manufacturing operations, supply chains, procedures volumes, service activities, and capital system orders and placements, any of which could have a material adverse effect on our business, financial condition, results of operations, or cash flows. The impact has varied widely over time by individual geography. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents and marketable securities. Our investments may include, at any time, a diversified portfolio of cash equivalents and short- and long-term investments in a variety of high-quality securities, including money market funds, U.S. treasury and U.S. government agency securities, corporate notes and bonds, commercial paper, non-U.S. government agency securities, and municipal notes. The Company’s exposure to any individual corporate entity is limited by policy. Deposits may exceed federally insured limits, and the Company is exposed to credit risk on deposits in the event of default by the financial institutions to the extent account balances exceed the amount insured by the Federal Deposit Insurance Corporation (FDIC). The Company closely monitors events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions or other companies in the financial services industry or the financial services industry generally, including Silicon Valley Bank. On March 10, 2023, Silicon Valley Bank (“SVB”), where the Company maintained accounts with a cash balance of less than 6% of the Company’s total cash, cash equivalents and marketable securities, was closed by the California Department of Financial Protection and Innovation and the FDIC was appointed as receiver. On March 12, 2023, the U.S. Department of the Treasury, Federal Reserve Board, and FDIC released a joint statement announcing that the FDIC would complete its resolution of SVB in a manner that fully protected all depositors at SVB and that depositors would have access to all of their money starting March 13, 2023. On March 26, 2023, it was announced that First-Citizens Bank & Trust Company would assume all of SVB’s deposits and loans as of March 27, 2023. During the periods presented, the Company has not experienced any losses on its deposits of cash, cash equivalents or marketable securities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, money market instruments, and other highly liquid investments with original maturities of three months or less from the date of purchase. Accrued interest receivable on money market instruments, included in other current assets, was less than $ 0.1 |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash that the Company is obligated to maintain in accordance with contractual obligations. The Company’s restricted cash was $ 0.5 0.7 |
Investments | Investments Our investments may include, at any time, a diversified portfolio of cash equivalents and short-and long-term investments in a variety of high-quality securities, including money market funds, U.S. treasury and U.S. government agency securities, corporate notes and bonds, commercial paper, non-U.S. government agency securities, and municipal notes. As of June 30, 2024, and December 31, 2023, the Company had no Amortized cost of U.S. treasury securities and marketable debt securities are based on the Company’s purchase price adjusted for accrual of discount, or amortization of premium, and recognition of impairment charges, if any. The amortized cost of securities the Company purchases at a discount or premium will equal the face or par value at maturity or the call date, if applicable. Stated interest on investments is reported as income when earned and is adjusted for amortization or accretion of any premium or discount. The Company segments its portfolio based on the underlying risk profiles of the securities and has a zero-loss expectation for U.S. treasury and U.S. government agency securities. The Company regularly reviews the securities using the probability of default method and analyzes the unrealized loss positions and evaluates the current expected credit loss by considering factors such as credit ratings, issuer-specific factors, current economic conditions, and reasonable and supportable forecasts. The Company did not have any material expected credit losses on investments or material expected credit losses on accrued interest related to investments during the six months ended June 30, 2024, or year ended December 31, 2023. |
Fair Value Measurements | Fair Value Measurements Financial instruments consist of cash and cash equivalents, restricted cash, investments, accounts receivable, and accounts payable. The Company measures certain financial assets and liabilities at fair value on a recurring basis. General accounting principles for fair value measurement establishes 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. As of June 30, 2024, and December 31, 2023, financial assets classified as Level 2 consisted of money market funds. The Company reviews trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data. This approach results in the Level 2 classification of these securities within the fair value hierarchy. |
Accounts Receivable, Contract Assets, and Allowance for Credit Losses | Accounts Receivable, Contract Assets, and Allowance for Credit Losses Accounts receivable primarily include amounts due from hospitals and distributors for acquisition of magnetic systems, associated disposable device sales and service contracts, net of allowances for expected credit losses. Credit is granted on a limited basis, with balances due generally within 30 days of billing. 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. The Company reports accounts receivable and contract assets net of an allowance for expected credit losses in accordance with Accounting Standards Codification Topic 326, Financial Instruments – Credit Losses (“ASC 326”). The provision for credit loss is based upon management’s assessment of historical and expected net collections considering business and economic conditions and other collection indicators. We assess collectability by reviewing the accounts receivable aging schedule on an aggregated basis where similar characteristics exist and on an individual basis when we identify specific customers with known disputes or collectability issues. Amounts deemed uncollectible are recorded as an allowance for expected credit losses. |
Revenue and Costs of Revenue | Revenue and Costs of Revenue The Company accounts for revenue in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers We generate revenue from the 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 of various devices as provided by co-development and co-placement arrangements, 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 arrangements with multiple performance obligations, 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 if necessary. Our revenue recognition policy affects the following revenue streams in our business as follows: Systems: Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation, service-type warranty, 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 service-type warranties and the implied obligation to deliver software enhancements if and when available is included in Other Recurring Revenue and is recognized ratably typically over the first year following installation of the system as the customer receives the service-type warranty and right to software updates throughout the period. The Company’s system contracts generally do not provide a right of return. Systems may be covered by a one-year assurance-type warranty in lieu of a service-type warranty. Assurance-type warranty costs were less than $ 0.1 25 36 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 six months ended June 30, 2024, and 2023. Disposable revenue represented 28 22 Royalty: The Company receives royalties on the sale of various devices as provided by co-development and co-placement arrangements with various manufacturers. Royalty revenue represented less than 1 Other Recurring Revenue: Other recurring revenue includes revenue from product maintenance plans, service-type warranties, other post warranty maintenance, and the implied obligation to provide software enhancements if and when available for a specified period, typically one year following installation of our systems. Revenue from services and software enhancements, service-type warranties, and the implied obligation to provide software enhancements are 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 47 41 The following table summarizes the Company’s revenue for systems, disposables, and service and accessories for the six months ended June 30, 2024, and 2023 (in thousands): Schedule of Revenue Disaggregated by Type 2024 2023 2024 2023 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Systems $ 240 $ 3,313 $ 2,852 $ 5,134 Disposables, service and accessories 4,262 4,546 8,530 9,273 Total revenue $ 4,502 $ 7,859 $ 11,382 $ 14,407 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 $ 15.3 The following table summarizes the Company’s contract assets and liabilities (in thousands): Summary of Contract Assets and Liabilities June 30, 2024 December 31, 2023 Contract Assets - unbilled receivables $ 116 $ 72 Customer deposits $ 1,845 $ 2,105 Product shipped, revenue deferred 1,371 1,413 Deferred service and license fees 3,855 4,776 Total deferred revenue $ 7,071 $ 8,294 Less: Long-term deferred revenue (2,121 ) (1,637 ) Total current deferred revenue $ 4,950 $ 6,657 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. Customer deposits primarily relate to future system sales but can also include deposits on disposable sales. 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, 2024, and 2023, that was included in the deferred revenue balance at the beginning of each reporting period was $ 4.3 |
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 were $ 0.1 Costs of systems revenue include direct product costs, installation labor and other costs including estimated assurance-type warranty costs, and initial training costs, when applicable. These costs are recognized at the time of sale. Costs of disposable revenue include direct product costs and estimated warranty costs and are recognized at the time of sale. Cost of revenue from services and license fees are recognized when incurred. |
Leasing Arrangements | Leasing Arrangements 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. The Company accounts for leases in accordance with Accounting Standards Update No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842 (“ASC 842”). The Company determines if an arrangement contains a lease at inception. The Company leases its facilities under operating leases. In accordance with ASC 842, operating lease agreements are recognized on the balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability. These leases generally 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. 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. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for its grants of stock options, non-qualified stock options, stock appreciation rights, restricted shares, 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 stock-based compensation at the grant date and the recognition of the related expense over the period in which the stock-based compensation vests. For time-based awards, 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 weighted average assumptions and fair value for options granted during the six months ended June 30, 2024, were 1) expected dividend rate of 0 76 6.25 For market-based awards, stock-based compensation expense is recognized over the minimum service period regardless of whether or not the market target is probable of being achieved. The fair value of such awards is estimated on the grant date using Monte Carlo simulations. Shares purchased by employees under the 2022 Employee Stock Purchase Plans are considered to be non-compensatory. |
Net Loss per Common Share | Net Loss per Common Share Basic earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average 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 (in thousands except for share and per share amounts): Schedule of Computation of Basic and Diluted Earnings Per Share 2024 2023 2024 2023 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net loss $ (5,833 ) $ (4,957 ) $ (10,340 ) $ (10,304 ) Cumulative dividend on convertible preferred stock (325 ) (335 ) (656 ) (666 ) Net loss attributable to common stockholders $ (6,158 ) $ (5,292 ) $ (10,996 ) $ (10,970 ) Weighted average number of common shares and equivalents: 84,570,738 81,049,211 84,025,335 78,787,652 Basic EPS $ (0.07 ) $ (0.07 ) $ (0.13 ) $ (0.14 ) Diluted EPS $ (0.07 ) $ (0.07 ) $ (0.13 ) $ (0.14 ) The Company did not include any portion of unearned restricted shares, outstanding options, stock appreciation rights, warrants or convertible preferred stock in the calculation of diluted loss per common share because all such securities are anti-dilutive for all periods presented. The application of the two-class method of computing earnings per share under general accounting principles for participating securities is not applicable during these periods because those securities do not contractually participate in its losses. As of June 30, 2024, the Company had 4,103,847 3.77 48,882,491 1,399,157 no |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05. The standard modifies the measurement approach for credit losses on financial instruments, including trade receivables, from an incurred loss method to a current expected credit loss method, otherwise known as “CECL.” The standard requires the measurement of expected credit losses to be based on relevant information, including historical experience, current conditions and a forecast that is supportable. The Company adopted the standard in the first quarter of 2023. The impact to the Company’s financial results was immaterial. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires enhanced income tax disclosures, primarily related to the effective tax rate reconciliation and income taxes paid. The Company does not expect a significant impact on its income tax disclosures upon adoption of the ASU which will be effective in the Company’s year ending December 31, 2025. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Revenue Disaggregated by Type | The following table summarizes the Company’s revenue for systems, disposables, and service and accessories for the six months ended June 30, 2024, and 2023 (in thousands): Schedule of Revenue Disaggregated by Type 2024 2023 2024 2023 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Systems $ 240 $ 3,313 $ 2,852 $ 5,134 Disposables, service and accessories 4,262 4,546 8,530 9,273 Total revenue $ 4,502 $ 7,859 $ 11,382 $ 14,407 |
Summary of Contract Assets and Liabilities | The following table summarizes the Company’s contract assets and liabilities (in thousands): Summary of Contract Assets and Liabilities June 30, 2024 December 31, 2023 Contract Assets - unbilled receivables $ 116 $ 72 Customer deposits $ 1,845 $ 2,105 Product shipped, revenue deferred 1,371 1,413 Deferred service and license fees 3,855 4,776 Total deferred revenue $ 7,071 $ 8,294 Less: Long-term deferred revenue (2,121 ) (1,637 ) Total current deferred revenue $ 4,950 $ 6,657 |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted EPS (in thousands except for share and per share amounts): Schedule of Computation of Basic and Diluted Earnings Per Share 2024 2023 2024 2023 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net loss $ (5,833 ) $ (4,957 ) $ (10,340 ) $ (10,304 ) Cumulative dividend on convertible preferred stock (325 ) (335 ) (656 ) (666 ) Net loss attributable to common stockholders $ (6,158 ) $ (5,292 ) $ (10,996 ) $ (10,970 ) Weighted average number of common shares and equivalents: 84,570,738 81,049,211 84,025,335 78,787,652 Basic EPS $ (0.07 ) $ (0.07 ) $ (0.13 ) $ (0.14 ) Diluted EPS $ (0.07 ) $ (0.07 ) $ (0.13 ) $ (0.14 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, All Other Investments [Abstract] | |
Schedule of Cash and Cash Equivalents, Restricted Cash and Investments | The following tables summarize the Company’s cash and fair value by significant category reported as cash and cash equivalents and restricted cash as of June 30, 2024, and December 31, 2023: Schedule of Cash and Cash Equivalents, Restricted Cash and Investments June 30, 2024 Valuation Reported as: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Restricted Cash- current Short-term Investments Restricted Cash Cash $ 1,726 $ - $ - $ 1,726 $ 1,726 $ - $ - $ - Level 2 Money market funds 13,438 - - 13,438 12,957 481 - - Subtotal 13,438 - - 13,438 12,957 481 - - Total assets measured at fair value $ 15,164 $ - $ - $ 15,164 $ 14,683 $ 481 $ - $ - December 31, 2023 Valuation Reported as: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Restricted Cash- current Short-term Investments Restricted Cash Cash $ 2,122 $ - $ - $ 2,122 $ 2,122 $ - $ - $ - Level 2 Money market funds 18,440 - - 18,440 17,696 525 - 219 Subtotal 18,440 - - 18,440 17,696 525 - 219 Total assets measured at fair value $ 20,562 $ - $ - $ 20,562 $ 19,818 $ 525 $ - $ 219 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in thousands): Schedule of Inventories June 30, 2024 December 31, 2023 Raw materials $ 6,064 $ 5,918 Work in process 1,112 1,034 Finished goods 4,111 3,413 Reserve for excess and obsolescence (2,003 ) (1,939 ) Total inventory $ 9,284 $ 8,426 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 (in thousands): Schedule of Prepaid Expenses and Other Assets June 30, 2024 December 31, 2023 Prepaid expenses $ 297 $ 181 Prepaid commissions 97 110 Deposits 467 424 Other assets 97 98 Total prepaid expenses and other assets 958 813 Less: Noncurrent prepaid expenses and other assets (116 ) (137 ) Total current prepaid expenses and other assets $ 842 $ 676 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and Equipment consist of the following (in thousands): Schedule of Property and Equipment June 30, 2024 December 31, 2023 Equipment $ 4,288 $ 4,269 Leasehold improvements 2,911 2,911 Gross property and equipment 7,199 7,180 Less: Accumulated depreciation (4,140 ) (3,876 ) Net property and equipment $ 3,059 $ 3,304 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases | |
Schedule of Lease Costs and Other Lease Information | The following table represents lease costs and other lease information (in thousands): Schedule of Lease Costs and Other Lease Information 2024 2023 2024 2023 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 227 $ 227 $ 454 $ 454 Short-term lease cost 5 4 8 8 Total net lease cost $ 232 $ 231 $ 462 $ 462 Cash paid within operating cash flows $ 253 $ 245 $ 510 $ 486 |
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 June 30, 2024, were as follows (in thousands): Schedule of Future Minimum Operating Lease Payments June 30, 2024 2024 $ 449 2025 919 2026 935 2027 956 2028 976 2029 and thereafter 3,054 Total lease payments 7,289 Less: Interest (2,008 ) Present value of lease liabilities $ 5,281 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): Schedule of Accrued Liabilities June 30, 2024 December 31, 2023 Accrued salaries, bonus, and benefits $ 1,230 $ 1,222 Accrued licenses and maintenance fees - 484 Accrued warranties 83 107 Accrued professional services 176 138 Accrued investigational sites 101 - Deferred contract obligation 1,045 1,045 Other 117 19 Total accrued liabilities 2,752 3,015 Less: Long term accrued liabilities (54 ) (43 ) Total current accrued liabilities $ 2,698 $ 2,972 The Company reversed an aged accrued regulatory fee of approximately $ 0.5 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Summary of Performance Award And Market Capitalization Milestones | Summary of Performance Award And Market Capitalization Milestones Tranche # No. of Shares Subject to PSU Market Capitalization Milestones (1) 1 1,000,000 $ 1,000,000,000 2 1,500,000 $ 1,500,000,000 3 1,500,000 $ 2,000,000,000 4 2,000,000 $ 2,500,000,000 5 1,000,000 $ 3,000,000,000 6 1,000,000 $ 3,500,000,000 7 1,000,000 $ 4,000,000,000 8 2,000,000 $ 4,500,000,000 9 1,000,000 $ 5,000,000,000 10 1,000,000 $ 5,500,000,000 Total: 13,000,000 |
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, 2024, is as follows: Summary of Option and Stock Appreciation Rights Activity Number of Options/SARs Range of Exercise Price Weighted Average Exercise Price per Share Outstanding, December 31, 2023 3,650,115 $ 0.74 9.87 $ 3.93 Granted 716,500 $ 2.45 3.01 $ 3.00 Exercised (11,763 ) $ 0.74 2.57 $ 1.02 Forfeited (251,005 ) $ 0.74 9.20 $ 3.99 Outstanding, June 30, 2024 4,103,847 $ 0.74 9.87 $ 3.77 |
Schedule of Restricted Stock Unit Activity | A summary of the restricted stock unit activity for the six-month period ended June 30, 2024, is as follows: Schedule of Restricted Stock Unit Activity Number of Restricted Stock Units Weighted Average Grant Date Fair Value per Unit Outstanding, December 31, 2023 1,502,131 $ 3.94 Granted 389,610 $ 1.54 Vested (492,584 ) $ 3.03 Outstanding, June 30, 2024 1,399,157 $ 3.60 |
Product Warranty Provisions (Ta
Product Warranty Provisions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Accrued Warranty | Accrued assurance-type warranty, which is included in other accrued liabilities, consists of the following (in thousands): Schedule of Accrued Warranty June 30, 2024 December 31, 2023 Warranty accrual, beginning of the fiscal period $ 107 $ 163 Accrual adjustment for product warranty (8 ) 547 Payments made (16 ) (603 ) Warranty accrual, end of the fiscal period $ 83 $ 107 |
Schedule of Revenue Disaggregat
Schedule of Revenue Disaggregated by Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Product Information [Line Items] | ||||
Total revenue | $ 4,502 | $ 7,859 | $ 11,382 | $ 14,407 |
Systems [Member] | ||||
Product Information [Line Items] | ||||
Total revenue | 240 | 3,313 | 2,852 | 5,134 |
Disposables Service and Accessories [Member] | ||||
Product Information [Line Items] | ||||
Total revenue | $ 4,262 | $ 4,546 | $ 8,530 | $ 9,273 |
Summary of Contract Assets and
Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Product Information [Line Items] | ||
Contract Assets - unbilled receivables | $ 116 | $ 72 |
Total deferred revenue | 7,071 | 8,294 |
Less: Long-term deferred revenue | (2,121) | (1,637) |
Total current deferred revenue | 4,950 | 6,657 |
Customer Deposits [Member] | ||
Product Information [Line Items] | ||
Total deferred revenue | 1,845 | 2,105 |
Product Shipped Revenue Deferred [Member] | ||
Product Information [Line Items] | ||
Total deferred revenue | 1,371 | 1,413 |
Deferred Service and License Fees [Member] | ||
Product Information [Line Items] | ||
Total deferred revenue | $ 3,855 | $ 4,776 |
Schedule of Computation of Basi
Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Net loss | $ (5,833) | $ (4,957) | $ (10,340) | $ (10,304) |
Cumulative dividend on convertible preferred stock | (325) | (335) | (656) | (666) |
Net loss attributable to common stockholders | $ (6,158) | $ (5,292) | $ (10,996) | $ (10,970) |
Weighted average number of common shares and equivalents, basic | 84,570,738 | 81,049,211 | 84,025,335 | 78,787,652 |
Weighted average number of common shares and equivalents, diluted | 84,570,738 | 81,049,211 | 84,025,335 | 78,787,652 |
Basic EPS | $ (0.07) | $ (0.07) | $ (0.13) | $ (0.14) |
Diluted EPS | $ (0.07) | $ (0.07) | $ (0.13) | $ (0.14) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Product Information [Line Items] | |||
Restricted cash | $ 0.5 | $ 0.7 | |
Short-term investments | |||
Expected credit loss on investments or accrued interest, description | The Company did not have any material expected credit losses on investments or material expected credit losses on accrued interest related to investments during the six months ended June 30, 2024, or year ended December 31, 2023. | The Company did not have any material expected credit losses on investments or material expected credit losses on accrued interest related to investments during the six months ended June 30, 2024, or year ended December 31, 2023. | |
Remaining performance obligations | $ 15.3 | ||
Contract with customer liability revenue recognized | 4.3 | $ 4.3 | |
Capitalized contract cost | $ 0.1 | $ 0.1 | |
Expected dividend rate | 0% | ||
Expected volatility | 76% | ||
Expected term | 6 years 3 months | ||
Series A Convertible Preferred Stock [Member] | |||
Product Information [Line Items] | |||
Potential common shares excluded from diluted earnings per share | 48,882,491 | ||
Stock Options and Stock Appreciation Rights [Member] | |||
Product Information [Line Items] | |||
Potential common shares excluded from diluted earnings per share | 4,103,847 | ||
Weighted average exercise price | $ 3.77 | ||
Restricted Stock [Member] | |||
Product Information [Line Items] | |||
Potential common shares excluded from diluted earnings per share | 1,399,157 | ||
Unearned Restricted Shares [Member] | |||
Product Information [Line Items] | |||
Potential common shares excluded from diluted earnings per share | 0 | ||
Revenue From System Delivery and Installation [Member] | Product Concentration Risk [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 25% | 36% | |
Disposable Revenue [Member] | Product Concentration Risk [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 28% | 22% | |
Royalty Revenue [Member] | Product Concentration Risk [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 1% | 1% | |
Other Recurring Revenue [Member] | Product Concentration Risk [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 47% | 41% | |
Systems [Member] | |||
Product Information [Line Items] | |||
Warranty costs | $ 0.1 | $ 0.1 | |
Other Current Assets [Member] | Maximum [Member] | |||
Product Information [Line Items] | |||
Accrued interest receivable | $ 0.1 | $ 0.1 |
Schedule of Cash and Cash Equiv
Schedule of Cash and Cash Equivalents, Restricted Cash and Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Cash and Cash Equivalents | $ 14,683 | $ 19,818 | $ 22,877 |
Restricted Cash- current | 481 | 525 | 569 |
Short-term Investments | |||
Restricted Cash | 219 | $ 481 | |
Total assets measured at fair value, Amortized Cost | 15,164 | 20,562 | |
Total assets measured at fair value, Gross Unrealized Gains | |||
Total assets measured at fair value, Gross Unrealized Losses | |||
Total assets measured at fair value, Fair value | 15,164 | 20,562 | |
Fair Value, Inputs, Level 2 [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Cash and Cash Equivalents | 12,957 | 17,696 | |
Restricted Cash- current | 481 | 525 | |
Short-term Investments | |||
Restricted Cash | 219 | ||
Cash and Held to maturity securities, Amortized Cost | 13,438 | 18,440 | |
Cash and Held to maturity securities, Gross Unrealized Gains | |||
Cash and Held to maturity securities, Gross Unrealized Losses | |||
Cash and Held to maturity securities, Fair Value | 13,438 | 18,440 | |
Cash [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Cash, Amortized Cost | 1,726 | 2,122 | |
Cash, Gross Unrealized Gains | |||
Cash, Gross Unrealized Losses | |||
Cash, Fair Value | 1,726 | 2,122 | |
Cash and Cash Equivalents | 1,726 | 2,122 | |
Restricted Cash- current | |||
Short-term Investments | |||
Restricted Cash | |||
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||
Cash, Amortized Cost | 13,438 | 18,440 | |
Cash, Gross Unrealized Gains | |||
Cash, Gross Unrealized Losses | |||
Cash, Fair Value | 13,438 | 18,440 | |
Cash and Cash Equivalents | 12,957 | 17,696 | |
Restricted Cash- current | 481 | 525 | |
Short-term Investments | |||
Restricted Cash | $ 219 |
Financial Instruments (Details
Financial Instruments (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Investments, All Other Investments [Abstract] | |||||
Interest income | $ 191 | $ 293 | $ 430 | $ 565 | $ 1,100 |
Schedule of Inventories (Detail
Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 6,064 | $ 5,918 |
Work in process | 1,112 | 1,034 |
Finished goods | 4,111 | 3,413 |
Reserve for excess and obsolescence | (2,003) | (1,939) |
Total inventory | $ 9,284 | $ 8,426 |
Schedule of Prepaid Expenses an
Schedule of Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 297 | $ 181 |
Prepaid commissions | 97 | 110 |
Deposits | 467 | 424 |
Other assets | 97 | 98 |
Total prepaid expenses and other assets | 958 | 813 |
Less: Noncurrent prepaid expenses and other assets | (116) | (137) |
Total current prepaid expenses and other assets | $ 842 | $ 676 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 7,199 | $ 7,180 |
Less: Accumulated depreciation | (4,140) | (3,876) |
Net property and equipment | 3,059 | 3,304 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 4,288 | 4,269 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 2,911 | $ 2,911 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Property and equipment additions | $ 0.1 | $ 0.1 |
Schedule of Lease Costs and Oth
Schedule of Lease Costs and Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases | ||||
Operating lease cost | $ 227 | $ 227 | $ 454 | $ 454 |
Short-term lease cost | 5 | 4 | 8 | 8 |
Total net lease cost | 232 | 231 | 462 | 462 |
Cash paid within operating cash flows | $ 253 | $ 245 | $ 510 | $ 486 |
Schedule of Future Minimum Oper
Schedule of Future Minimum Operating Lease Payments (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases | |
2024 | $ 449 |
2025 | 919 |
2026 | 935 |
2027 | 956 |
2028 | 976 |
2029 and thereafter | 3,054 |
Total lease payments | 7,289 |
Less: Interest | (2,008) |
Present value of lease liabilities | $ 5,281 |
Leases (Details Narrative)
Leases (Details Narrative) $ in Millions | Mar. 01, 2021 USD ($) ft² | Jun. 30, 2024 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Weighted average discount rate, operating lease | 9% | |
Weighted average remaining lease term, operating lease | 7 years 5 months 26 days | |
Office Lease Agreement [Member] | Globe Building Company [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Area of land | ft² | 43,100 | |
Operating lease, term | 10 years | |
Operating lease, option to extend | two | |
Operating lease, renewal term | 5 years | |
Office Lease Agreement [Member] | Globe Building Company [Member] | 2022 [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Payments for rent | $ 0.8 | |
Office Lease Agreement [Member] | Globe Building Company [Member] | 2031 [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Payments for rent | $ 1 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | |||
Accrued salaries, bonus, and benefits | $ 1,230 | $ 1,222 | |
Accrued licenses and maintenance fees | 484 | ||
Accrued warranties | 83 | 107 | $ 163 |
Accrued professional services | 176 | 138 | |
Accrued investigational sites | 101 | ||
Deferred contract obligation | 1,045 | 1,045 | |
Other | 117 | 19 | |
Total accrued liabilities | 2,752 | 3,015 | |
Less: Long term accrued liabilities | (54) | (43) | |
Total current accrued liabilities | $ 2,698 | $ 2,972 |
Accrued Liabilities (Details Na
Accrued Liabilities (Details Narrative) $ in Millions | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Payables and Accruals [Abstract] | |
Accrued regulatory fee | $ 0.5 |
Summary of Performance Award An
Summary of Performance Award And Market Capitalization Milestones (Details) - PSU Agreement [Member] - Mr. Fischel [Member] | Feb. 23, 2021 USD ($) shares |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 13,000,000 |
Market capitalization milestone, amount | $ | $ 1,000,000,000 |
Share-Based Payment Arrangement, Tranche One [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 1,000,000 |
Market capitalization milestone, amount | $ | $ 1,000,000,000 |
Share-Based Payment Arrangement, Tranche Two [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 1,500,000 |
Market capitalization milestone, amount | $ | $ 1,500,000,000 |
Share-Based Payment Arrangement, Tranche Three [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 1,500,000 |
Market capitalization milestone, amount | $ | $ 2,000,000,000 |
ShareBased Compensation Award Tranche Four [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 2,000,000 |
Market capitalization milestone, amount | $ | $ 2,500,000,000 |
ShareBased Compensation Award Tranche Five [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 1,000,000 |
Market capitalization milestone, amount | $ | $ 3,000,000,000 |
ShareBased Compensation Award Tranche Six [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 1,000,000 |
Market capitalization milestone, amount | $ | $ 3,500,000,000 |
ShareBased Compensation Award Tranche Seven [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 1,000,000 |
Market capitalization milestone, amount | $ | $ 4,000,000,000 |
ShareBased Compensation Award Tranche Eight [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 2,000,000 |
Market capitalization milestone, amount | $ | $ 4,500,000,000 |
ShareBased Compensation Award Tranche Nine [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 1,000,000 |
Market capitalization milestone, amount | $ | $ 5,000,000,000 |
ShareBased Compensation Award Tranche Ten [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares subject to PSU | shares | 1,000,000 |
Market capitalization milestone, amount | $ | $ 5,500,000,000 |
Summary of Option and Stock App
Summary of Option and Stock Appreciation Rights Activity (Details) - Equity Option [Member] - Stock Appreciation Rights (SARs) [Member] | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Number of Options/SARs, Outstanding, Beginning | shares | 3,650,115 |
Weighted Average Exercise Price per Share, Outstanding, Beginning | $ 3.93 |
Number of Options/SARs, Granted | shares | 716,500 |
Weighted Average Exercise Price per Share, Granted | $ 3 |
Number of Options/SARs, Exercised | shares | (11,763) |
Weighted Average Exercise Price per Share, Exercised | $ 1.02 |
Number of Options/SARs, Forfeited | shares | (251,005) |
Weighted Average Exercise Price per Share, Forfeited | $ 3.99 |
Number of Options/SARs, Outstanding, Ending | shares | 4,103,847 |
Weighted Average Exercise Price per Share, Outstanding, Ending | $ 3.77 |
Minimum [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Range of Exercise Price, Outstanding | 0.74 |
Range of Exercise Price, Granted | 2.45 |
Range of Exercise Price, Exercised | 0.74 |
Range of Exercise Price, Forfeited | 0.74 |
Range of Exercise Price, Outstanding, Ending | 0.74 |
Maximum [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Range of Exercise Price, Outstanding | 9.87 |
Range of Exercise Price, Granted | 3.01 |
Range of Exercise Price, Exercised | 2.57 |
Range of Exercise Price, Forfeited | 9.20 |
Range of Exercise Price, Outstanding, Ending | $ 9.87 |
Schedule of Restricted Stock Un
Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Restricted Stock Units, Outstanding, Beginning | shares | 1,502,131 |
Weighted Average Grant Date Fair Value per Unit, Outstanding, Beginning | $ / shares | $ 3.94 |
Number of Restricted Stock Units, Outstanding, Granted | shares | 389,610 |
Weighted Average Grant Date Fair Value per Unit, Granted | $ / shares | $ 1.54 |
Number of Restricted Stock Units, Outstanding, Vested | shares | (492,584) |
Weighted Average Grant Date Fair Value per Unit, Vested | $ / shares | $ 3.03 |
Number of Restricted Stock Units, Outstanding, Ending | shares | 1,399,157 |
Weighted Average Grant Date Fair Value per Unit, Outstanding, Ending | $ / shares | $ 3.60 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders’ Equity (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Feb. 23, 2021 | Sep. 30, 2016 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class of Stock [Line Items] | ||||
Common stock, voting rights | The holders of common stock are entitled to one vote for each share held | |||
Payments of dividends common stock | $ 0 | |||
Stock-based compensation expense | 5,127,000 | $ 5,314,000 | ||
Unrecognized stock-based compensation expense | $ 3,600,000 | |||
Share based payment arrangement, cost not yet recognized, period | 4 years | |||
2012 Stock Incentive Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Stock plan expiration date | May 19, 2022 | |||
Stock Award Plans [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares reserved for future grants | 5,633,730 | |||
PSU Agreement [Member] | Mr. Fischel [Member] | ||||
Class of Stock [Line Items] | ||||
Performance award term | 10 years | |||
Number of shares granted | 13,000,000 | |||
Maximum market capitalization milestone, amount | $ 1,000,000,000 | |||
Increase in market capitalization milestone, amount | $ 500,000,000 | |||
Award vesting rights, description | Each tranche represents a portion of the PSUs covering the number of shares outlined in the table above. Each tranche vests upon (i) satisfaction of the market capitalization milestones and (ii) continued employment as CEO of the Company from the grant date through December 31, 2030. Absent an earlier termination, the PSUs will expire on December 31, 2030. If our CEO ceases employment as CEO of the Company for any reason including death, disability, termination for cause or without cause (as defined in the award agreement), or if he voluntary terminates after service as CEO for at least five years, the remaining service period will be waived and he will retain any PSUs that have vested through the date of termination | |||
Stock-based compensation expense | $ 3,600,000 | 3,500,000 | ||
Unrecognized stock-based compensation expense | $ 33,400,000 | $ 40,600,000 | ||
PSU Agreement [Member] | Mr. Fischel [Member] | Maximum [Member] | ||||
Class of Stock [Line Items] | ||||
Maximum market capitalization milestone, amount | $ 5,500,000,000 | |||
Series A Convertible Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Sale of stock, number of shares sold | 24,000 | |||
Preferred stock, par value | $ 0.001 | |||
Preferred stock, stated value | 1,000 | |||
Redemption price per share | $ 0.65 | |||
Common stock issuable from warrants | 36,923,078 | |||
Preferred stock dividend rate | 6% | |||
Preferred stock redemption, triggering event, percent of common stock sold threshold | 50% |
Schedule of Accrued Warranty (D
Schedule of Accrued Warranty (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | ||
Warranty accrual, beginning of the fiscal period | $ 107 | $ 163 |
Accrual adjustment for product warranty | (8) | 547 |
Payments made | (16) | (603) |
Warranty accrual, end of the fiscal period | $ 83 | $ 107 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Millions | 1 Months Ended | |
Feb. 29, 2024 | Apr. 30, 2021 | |
Line of Credit Facility [Line Items] | ||
Vendor proceedings on Inventory | $ 0.6 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term line of credit | $ 1.8 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Jul. 31, 2024 shares |
Subsequent Event [Member] | Common Stock [Member] | Share Purchase Agreement [Member] | |
Subsequent Event [Line Items] | |
Stock issued during period, shares, new issues | 1,486,620 |