Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 03, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'NURO | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 5,945,581 | ' |
Entity Registrant Name | 'NeuroMetrix, Inc. | ' | ' |
Entity Central Index Key | '0001289850 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $4,743,950 |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $9,195,753 | $8,699,478 |
Accounts receivable, net of allowances of $35,895 and $151,616 at December 31, 2013 and 2012, respectively | 390,922 | 566,451 |
Inventories | 563,036 | 834,526 |
Prepaid expenses and other current assets | 416,816 | 472,611 |
Total current assets | 10,566,527 | 10,573,066 |
Fixed assets, net | 229,313 | 293,897 |
Other long-term assets | 923 | 10,484 |
Total assets | 10,796,763 | 10,877,447 |
Current liabilities: | ' | ' |
Accounts payable | 322,896 | 257,361 |
Accrued compensation | 386,004 | 647,288 |
Accrued expenses | 870,196 | 948,843 |
Current portion of deferred revenue | 68,812 | 134,185 |
Current portion of capital lease obligation | 0 | 17,929 |
Total current liabilities | 1,647,908 | 2,005,606 |
Deferred revenue, net of current portion | 15,277 | 71,419 |
Common stock warrants | 1,938,603 | 0 |
Total liabilities | 3,601,788 | 2,077,025 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders’ equity | ' | ' |
Preferred stock, $0.001 par value, 5,000,000 shares authorized at December 31, 2013 and 2012; no shares issued and outstanding at December 31, 2013 and 2012 | 0 | 0 |
Common stock, $0.0001 par value; 50,000,000 authorized; 5,945,581 and 2,140,871 shares issued and outstanding at December 31, 2013 and 2012, respectively | 595 | 214 |
Additional paid-in capital | 153,806,460 | 147,393,151 |
Accumulated deficit | -146,612,080 | -138,592,943 |
Total stockholders’ equity | 7,194,975 | 8,800,422 |
Total liabilities and stockholders’ equity | $10,796,763 | $10,877,447 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts receivable, allowances | $35,895 | $151,616 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 5,945,581 | 2,140,871 |
Common stock, shares outstanding | 5,945,581 | 2,140,871 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues | $5,278,806 | $7,575,289 | $10,396,775 |
Cost of revenues | 2,194,259 | 3,588,806 | 4,722,069 |
Gross profit | 3,084,547 | 3,986,483 | 5,674,706 |
Operating expenses: | ' | ' | ' |
Research and development | 3,438,218 | 3,545,790 | 3,877,526 |
Sales and marketing | 2,779,695 | 5,727,482 | 6,688,591 |
General and administrative | 4,225,474 | 4,735,238 | 5,111,616 |
Total operating expenses | 10,443,387 | 14,008,510 | 15,677,733 |
Loss from operations | -7,358,840 | -10,022,027 | -10,003,027 |
Interest income | 5,666 | 14,474 | 21,922 |
Warrants offering costs | -376,306 | 0 | 0 |
Change in fair value of warrant liability | -289,657 | 0 | 0 |
Net loss | ($8,019,137) | ($10,007,553) | ($9,981,105) |
Net loss per common share applicable to common stockholders,basic and diluted (See Note 2, Summary of SignificantAccounting Policies) | ($3.07) | ($5.22) | ($15.53) |
Weighted average number of common shares outstanding, basic and diluted | 2,862,094 | 1,918,723 | 642,513 |
Statements_of_Changes_in_Stock
Statements of Changes in Stockholders' Equity (USD $) | Total | Series A-1 Preferred Stock | Series A-2 Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning Balance at Dec. 31, 2010 | $20,198,972 | $0 | $0 | $65 | $138,803,192 | ($118,604,285) |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 0 | 0 | 644,376 | ' | ' |
Stock-based compensation expense | 837,040 | 0 | 0 | 0 | 837,040 | 0 |
Issuance of common stock under employee stock purchase plan (in shares) | ' | 0 | 0 | 4,002 | ' | ' |
Issuance of common stock under employee stock purchase plan | 33,614 | 0 | 0 | 0 | 33,614 | 0 |
Other issuances of stock from option plan (in shares) | ' | 0 | 0 | 2,342 | ' | ' |
Other issuances of stock from option plan | 0 | 0 | 0 | 0 | 0 | 0 |
Net loss | -9,981,105 | 0 | 0 | 0 | 0 | -9,981,105 |
Ending Balance at Dec. 31, 2011 | 11,088,521 | 0 | 0 | 65 | 139,673,846 | -128,585,390 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 0 | 0 | 650,720 | ' | ' |
Stock-based compensation expense | 319,368 | 0 | 0 | 0 | 319,368 | 0 |
Issuance of common stock and warrants in public offering (In shares) | ' | 0 | 0 | 1,421,735 | ' | ' |
Issuance of common stock and warrants in public offering | 7,377,048 | 0 | 0 | 142 | 7,376,906 | 0 |
Issuance of common stock on redemption of warrants (in shares) | ' | 0 | 0 | 23,127 | ' | ' |
Issuance of common stock on redemption of warrants | 0 | 0 | 0 | 2 | -2 | 0 |
Issuance of common stock under employee stock purchase plan (in shares) | ' | 0 | 0 | 8,895 | ' | ' |
Issuance of common stock under employee stock purchase plan | 23,038 | 0 | 0 | 1 | 23,037 | 0 |
Other issuances of stock from option plan (in shares) | ' | 0 | 0 | 36,394 | ' | ' |
Other issuances of stock from option plan | 0 | 0 | 0 | 4 | -4 | 0 |
Net loss | -10,007,553 | 0 | 0 | 0 | 0 | -10,007,553 |
Ending Balance at Dec. 31, 2012 | 8,800,422 | 0 | 0 | 214 | 147,393,151 | -138,592,943 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 0 | 0 | 2,140,871 | ' | ' |
Stock-based compensation expense | 245,843 | 0 | 0 | 0 | 245,843 | 0 |
Issuance of common stock and preferred stock under Securities Purchase Agreement (in shares) | ' | 1,066.25 | 3,370.51 | 248,147 | ' | ' |
Issuance of common stock and preferred stock under Securities Purchase Agreement | 876,786 | 1 | 3 | 25 | 876,757 | 0 |
Issuance of common stock upon conversion of preferred stock (in shares) | ' | -1,066.25 | -3,370.51 | 2,117,787 | ' | ' |
Issuance of common stock upon conversion of preferred stock | 0 | -1 | -3 | 212 | -208 | 0 |
Issuance of common stock upon exercise of warrants (in shares) | ' | 0 | 0 | 1,308,611 | ' | ' |
Issuance of common stock upon exercise of warrants | 2,617,222 | 0 | 0 | 131 | 2,617,091 | 0 |
Reclassification of warrant liability to equity | 2,362,259 | 0 | 0 | 0 | 2,362,259 | 0 |
Issuance of common stock under employee stock purchase plan (in shares) | ' | 0 | 0 | 16,094 | ' | ' |
Issuance of common stock under employee stock purchase plan | 26,285 | 0 | 0 | 2 | 26,283 | 0 |
Common stock issued to settle incentive compensation obligations (in shares) | ' | 0 | 0 | 114,071 | ' | ' |
Common stock issued to settle incentive compensation obligations | 285,295 | 0 | 0 | 11 | 285,284 | 0 |
Net loss | -8,019,137 | 0 | 0 | 0 | 0 | -8,019,137 |
Ending Balance at Dec. 31, 2013 | $7,194,975 | $0 | $0 | $595 | $153,806,460 | ($146,612,080) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 0 | 0 | 5,945,581 | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash flows for operating activities: | ' | ' | ' |
Net loss | ($8,019,137) | ($10,007,553) | ($9,981,105) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization | 150,663 | 297,097 | 376,932 |
Intangible asset impairment | 0 | 0 | 192,500 |
Stock-based compensation | 245,843 | 319,368 | 837,040 |
Inventory charges | 151,558 | 234,848 | 98,556 |
Warrants offering costs | 376,306 | 0 | 0 |
Change in fair value of warrant liability | 289,657 | 0 | 0 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | 175,529 | 343,267 | 682,846 |
Inventories | 119,932 | 694,327 | 550,549 |
Prepaid expenses and other current assets | 52,748 | -76,880 | 110,400 |
Accounts payable | 65,535 | -371,854 | 370,060 |
Accrued expenses and compensation | -54,635 | -530,141 | 240,433 |
Deferred revenue, deferred costs, and other | -108,907 | -78,046 | -256,609 |
Net cash used in operating activities | -6,554,908 | -9,175,567 | -6,778,398 |
Cash flows for investing activities: | ' | ' | ' |
Purchases of fixed assets | -86,079 | -107,465 | -110,987 |
Release of restricted cash | 0 | 229,500 | 178,500 |
Net cash (used in) provided by investing activities | -86,079 | 122,035 | 67,513 |
Cash flows from financing activities: | ' | ' | ' |
Net proceeds from issuance of stock and warrants, including public offering and equity plans | 7,155,191 | 7,482,884 | 33,614 |
Payments on capital lease | -17,929 | -20,320 | -19,092 |
Net cash provided by financing activities | 7,137,262 | 7,462,564 | 14,522 |
Net increase (decrease) in cash and cash equivalents | 496,275 | -1,590,968 | -6,696,363 |
Cash and cash equivalents, beginning of year | 8,699,478 | 10,290,446 | 16,986,809 |
Cash and cash equivalents, end of year | 9,195,753 | 8,699,478 | 10,290,446 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Common stock issued to settle incentive compensation obligation | 285,295 | 0 | 0 |
Warrants issued under Securities Purchase Agreement initially recorded as a non-current liability | 4,011,205 | 0 | 0 |
Common stock issued in exchange for warrants | 0 | 127,885 | 0 |
Warrants issued in public offering | 0 | 2,373,267 | 0 |
Warrants liability reclassified to additional paid-in capital upon exercise of warrants | $2,362,259 | $0 | $0 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Business Description and Basis of Presentation | ' |
1. Description of Business and Basis of Presentation | |
NeuroMetrix, Inc., or the Company, a Delaware corporation, was founded in June 1996. The Company is a medical device company focused on the neurological complications of diabetes. The Company believes that its substantial experience in developing medical devices to stimulate and measure peripheral nerve function uniquely position it to address unmet medical needs related to diabetic neuropathy. Neuropathy is a common and serious, often painful, complication of diabetes that may lead to foot ulcers and limb amputation. The Company has over a decade of experience in neuropathy detection, starting with approval in 1998 by the United States Food and Drug Administration, or FDA, of the NC-stat System, a point-of-care device for the performance of general purpose nerve conduction studies. | |
In the first quarter of 2013, the Company completed product development and launched the SENSUSTM Pain Management System, or SENSUS, which is designed for relief of chronic, intractable pain. The Company believes this product will be attractive to pain medicine physicians, neurologists, endocrinologists, podiatrists, primary care physicians, and other physicians that are challenged with trying to manage pain in their patients with painful diabetic neuropathy, or PDN and other forms of neuropathic pain. The Company also markets the NC-stat® DPNCheck® device, which is a fast, accurate, and quantitative nerve conduction test that is used to evaluate systemic neuropathies such as diabetic peripheral neuropathy, or DPN. NC-stat DPNCheck is designed to be used by endocrinologists, podiatrists, primary care physicians and other clinicians at the point-of-care to objectively detect, stage, and monitor DPN. Sales efforts for NC-stat DPNCheck are currently targeted at opportunities in the managed care market. The Company’s historical neurodiagnostic business is based on the ADVANCETM NCS/EMG System, or the ADVANCE System, which is a comprehensive platform for the performance of traditional nerve conduction studies and invasive electromyography procedures and which is primarily used in physician offices and clinics. While the ADVANCE System contributes the majority of the Company’s revenues, the Company is not actively managing the ADVANCE business for growth. | |
On June 4, 2013, the Company entered into a Securities Purchase Agreement, as amended (the “Purchase Agreement”), providing for the issuance of (i) 248,147 shares of common stock at a price of $2.095 per share, (ii)1,066.254 shares of Series A-1 convertible preferred stock (the “Series A-1 Preferred Stock”) at a price of $1,000 per share, (iii) 3,370.510 shares of Series A-2 convertible preferred stock (the “Series A-2 Preferred Stock” and together with the Series A-1 Preferred Stock, the “Preferred Stock”) at a price of $1,000 per share, and (iv) five year warrants to purchase up to 2,365,934 shares of common stock with an exercise price of $2.00 per share (the “2013 Offering”). Each share of Preferred Stock was convertible into 477.327 shares of common stock, subject to adjustment, at any time at the option of the holder. The 2013 Offering resulted in approximately $5.0 million in gross proceeds, before deducting placement agent fees and other expenses. Net proceeds from the 2013 Offering were approximately $4.5 million. During the second half of 2013, all of the Series A-1 Preferred Stock and Series A-2 Preferred Stock was converted into a total of 2,117,787 shares of common stock. In addition, during the fourth quarter of 2013, warrants to purchase 1,308,611 shares of common stock were exercised and the same number of shares of common stock was issued. Proceeds from these exercises totaled $2.6 million. See Note 14, Stockholders’ Equity, for further details. | |
The Company held cash and cash equivalents of $9.2 million as of December 31, 2013. The Company believes that these resources and the cash to be generated from expected product sales will be sufficient to meet its projected operating requirements through the first quarter of 2015. The Company continues to face significant challenges and uncertainties and, as a result, the Company’s available capital resources may be consumed more rapidly than currently expected due to (a) decreases in sales of the Company’s products and the uncertainty of future revenues from new products; (b) changes the Company may make to the business that affect ongoing operating expenses; (c) changes the Company may make in its business strategy; (d) regulatory developments affecting the Company’s existing products and delays in the FDA approval process for products under development; (e) changes the Company may make in its research and development spending plans; and (f) other items affecting the Company’s forecasted level of expenditures and use of cash resources. Accordingly, the Company will need to raise additional funds to support its operating and capital needs in the second quarter of 2015 and beyond. The Company intends to obtain additional funding through public or private financing, collaborative arrangements with strategic partners, or through additional credit lines or other debt financing sources to increase the funds available to fund operations. However, the Company may not be able to secure such financing in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity or debt securities to raise additional funds, its existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences and privileges senior to those of the Company’s existing stockholders. If the Company raises additional funds through collaboration, licensing or other similar arrangements, it may be necessary to relinquish valuable rights to its potential products or proprietary technologies, or grant licenses on terms that are not favorable to the Company. Without additional funds, the Company may be forced to delay, scale back or eliminate some of its sales and marketing efforts, research and development activities, or other operations and potentially delay product development in an effort to provide sufficient funds to continue its operations. If any of these events occurs, the Company’s ability to achieve its development and commercialization goals would be adversely affected. | |
Certain prior period amounts have been adjusted to reflect the Company's 1-for-6 reverse stock split of its common stock completed on February 15, 2013 (see Note 15, Reverse Stock Splits, for further details). | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
2. Summary of Significant Accounting Policies | |||||||||||
Use of Estimates and Assumptions | |||||||||||
The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during reporting periods. Actual results could differ from those estimates. | |||||||||||
The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances and regularly assesses these estimates, but actual results could differ materially from these estimates. Effects of changes in estimates are recorded in the period in which they occur. | |||||||||||
Cash and Cash Equivalents | |||||||||||
The Company considers all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. Cash equivalents are recorded at cost which approximates fair value. The Company invests cash primarily in a money market account and other investments which management believes are subject to minimal credit and market risk. | |||||||||||
Concentrations of Credit Risk | |||||||||||
Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents in bank deposit accounts and trade receivables. The Company invests its funds in highly rated institutions and limits its investment in any individual account so that they do not exceed FDIC limits. The Company has not experienced significant losses related to cash and cash equivalents and does not believe it is exposed to any significant credit risks relating to its cash and cash equivalents. | |||||||||||
At December 31, 2013, one customer accounted for 14% of accounts receivable and a second customer accounted for 12% of accounts receivable. For the years ended December 31, 2013, 2012, and 2011, no single customer accounted for more than 10% of revenue. | |||||||||||
The Company relies on in-house assembly and three third-party manufacturers to manufacture the major portion of its current products and product components. The disruption or termination of the supply of these products or a significant increase in the cost of these products from these sources could have an adverse effect on the Company’s business, financial position, and results of operations. | |||||||||||
Inventories | |||||||||||
Inventories, consisting primarily of purchased components, are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. The Company writes down inventory to its net realizable value for excess or obsolete inventory. | |||||||||||
Fair Value | |||||||||||
The carrying amounts of the Company’s accounts receivable, accounts payable, and accrued expenses approximate their fair value at December 31, 2013 and 2012 due to the short-term nature of these assets and liabilities. The Company’s cash equivalents and its warrant liability are carried at fair value determined according to the fair value hierarchy described in Note 11. | |||||||||||
Revenue Recognition | |||||||||||
The Company recognizes revenue when the following criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred and risk of loss has passed, the seller’s price to the buyer is fixed or determinable, and collection is reasonably assured. | |||||||||||
Revenues associated with the sale of the ADVANCE devices to customers and distributors are recognized upon shipment, provided that the selling price is fixed or determinable, persuasive evidence of an arrangement exists, collection of receivables is reasonably assured, product returns are reasonably estimable, and no continuing obligations exist. The revenues from the sale of an ADVANCE communication hub together with access to NeuroMetrix information systems are considered one unit of accounting and deferred and recognized on a straight-line basis over the estimated period of time that the Company provides the service associated with the information systems of three years. The resulting deferred revenue and deferred costs are presented as separate line items on the accompanying balance sheet. Revenues related to extended service agreements for the devices are recognized ratably over the term of the extended service agreement. | |||||||||||
Revenues associated with the sale of the SENSUS and NC-stat DPNCheck devices are recognized upon shipment, provided that the selling price is fixed or determinable, persuasive evidence of an arrangement exists, collection of receivables is reasonably assured, product returns are reasonably estimable, and no continuing obligations exist. | |||||||||||
Revenues also include sales of consumables, including single use nerve specific electrodes and other accessories. These revenues are recognized upon shipment provided that the selling price is fixed or determinable, persuasive evidence of an arrangement exists, collection of receivables is reasonably assured, and product returns are reasonably estimable. | |||||||||||
When multiple elements are contained in a single arrangement, the Company allocates revenue between the elements based on their relative selling prices. The Company determines selling price using vendor specific objective evidence, or VSOE, if it is available, third-party evidence, or TPE, if VSOE is not available, and best estimate of selling price, or BESP, if neither VSOE nor TPE are available. The Company generally expects that it will not be able to establish TPE due to the nature of the markets in which it competes, and, as such, it will typically determine selling price using VSOE or if not available, BESP. The objective of BESP is to determine the selling price of a deliverable on a standalone basis. The Company’s determination of BESP involves a weighting of several factors based on the specific facts and circumstances of an arrangement. Specifically, the Company considers the cost to produce the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar parts, its ongoing pricing strategy, the value of any enhancements that have been built into the deliverable, and the characteristics of the varying markets in which the deliverable is sold. | |||||||||||
Revenue recognition involves judgments, including assessments of expected returns and expected customer relationship periods. The Company analyzes various factors, including a review of specific transactions, its historical returns, average customer relationship periods, customer usage, customer balances, and market and economic conditions. Changes in judgments or estimates on these factors could materially impact the timing and amount of revenues and costs recognized. Should market or economic conditions deteriorate, the Company’s actual return or bad debt experience could exceed its estimate. | |||||||||||
Certain product sales are made with a 30-day right of return. Since the Company can reasonably estimate future returns, it recognizes revenues associated with product sales that contain a right of return upon shipment and at the same time it records a sales return reserve, which reduces revenue and accounts receivable by the amount of estimated returns. | |||||||||||
Accounts Receivable | |||||||||||
Accounts receivable on the balance sheet are recorded net of the allowance for doubtful accounts receivable and the reserve for estimated returns. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company reviews its allowance for doubtful accounts and determines the allowance based on an analysis of customer past payment history, product usage activity, and recent communications between the Company and the customer. Past due balances are reviewed individually for collectibility. Account balances are written-off against the allowance when the Company feels it is probable the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to its customers. | |||||||||||
Income Taxes | |||||||||||
The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company’s financial statements contain certain deferred tax assets, which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. In accordance with the provisions of the Income Taxes topic of the Codification, the Company is required to establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. The Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. | |||||||||||
Utilization of the NOL and research and development credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that have occurred previously or that could occur in the future, as provided by Section 382 of the Internal Revenue Code of 1986, as well as similar state provisions. Ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. | |||||||||||
If the Company has experienced a change of control, utilization of its NOL or tax credits carryforwards would be subject to an annual limitation under Section 382. Any limitation may result in expiration of a portion of the NOL or research and development credit carryforwards before utilization. Subsequent ownership changes could further impact the limitation in future years. Further, until a study is completed and any limitation known, no amounts are being presented as an uncertain tax position. | |||||||||||
A full valuation allowance has been provided against the Company’s NOL carryforwards and research and development credit carryforwards and, if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the balance sheet or statement of operations if an adjustment were required. | |||||||||||
Management performed a two-step evaluation of all tax positions, ensuring that these tax return positions meet the “more likely than not” recognition threshold and can be measured with sufficient precision to determine the benefit recognized in the financial statements. These evaluations provide management with a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements certain tax positions that the Company has taken or expects to take on income tax returns. | |||||||||||
Research and Development | |||||||||||
Costs incurred in the research and development of the Company’s products are expensed as incurred. Included in research and development costs are wages, benefits, product design consulting, and other operating costs such as facilities, supplies, and overhead directly related to the Company’s research and development efforts. | |||||||||||
Product Warranty Costs | |||||||||||
The Company accrues estimated product warranty costs at the time of sale which are included in cost of sales in the statements of operations. The amount of the accrued warranty liability is based on historical information such as past experience, product failure rates, number of units repaired, and estimated cost of material and labor. The liabilities for product warranty costs of $4,719 and $18,629 at December 31, 2013 and 2012, respectively, are included in accrued expenses in the accompanying balance sheets. | |||||||||||
Fixed Assets and Long-Lived Assets | |||||||||||
Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful life of each asset. Expenditures for repairs and maintenance are charged to expense as incurred. On disposal, the related assets and accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the Company’s statement of operations. Leasehold improvements are amortized over the shorter of the estimated useful life of the improvement or the remaining term of the lease. | |||||||||||
The Company periodically evaluates the recoverability of its fixed assets and other long-lived assets whenever events or changes in circumstances indicate that an event of impairment may have occurred. This periodic review may result in an adjustment of estimated depreciable lives or asset impairment. When indicators of impairment are present, the carrying values of the asset are evaluated in relation to the assets operating performance and future undiscounted cash flows of the underlying assets. If the future undiscounted cash flows are less than their book value, an impairment may exist. The impairment is measured as the difference between the book value and the fair value of the underlying asset. Fair values are based on estimates of the market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. | |||||||||||
Accounting for Stock-Based Compensation | |||||||||||
Stock-based compensation cost is generally recognized ratably over the requisite service period. The Company uses the Black-Scholes option pricing model for determining the fair value of its stock options and amortizes its stock-based compensation expense using the straight-line method. The Black-Scholes model requires certain assumptions that involve judgment. Such assumptions are the expected share price volatility, expected life of options, expected annual dividend yield, and risk-free interest rate (See Note 3 — Stock-Based Compensation and Stockholders’ Equity). | |||||||||||
Net Loss per Common Share | |||||||||||
Basic net loss per common share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic net income per share. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period plus the dilutive effect of the weighted average number of outstanding instruments such as options, warrants, restricted stock, and preferred stock. Because the Company has reported a net loss for all periods presented, diluted loss per common share is the same as basic loss per common share, as the effect of utilizing the fully diluted share count would have reduced the net loss per common share. Therefore, in calculating net loss per share amounts, shares underlying the following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net loss per common share because their effect was anti-dilutive for each of the periods presented: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Options | 161,391 | 53,999 | 91,411 | ||||||||
Warrants | 2,055,733 | 741,546 | 238,413 | ||||||||
Unvested restricted stock | 22,387 | 31,699 | 4,725 | ||||||||
Total | 2,239,511 | 827,244 | 334,549 | ||||||||
The Beneficial Conversion Feature, or BCF, recorded in the 2013 Offering has been recognized as a deemed dividend attributable to the Preferred Stock and is reflected as an adjustment in the calculation of earnings per share. See Note 14, Stockholders’ Equity, for further details. | |||||||||||
Net loss per common share applicable to common stockholders, basic and diluted was determined as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net loss | $ | -8,019,137 | $ | -10,007,553 | $ | -9,981,105 | |||||
Deemed dividend attributable to preferred stockholders in | -766,872 | — | — | ||||||||
connection with beneficial conversion features | |||||||||||
Net loss applicable to common stockholders | $ | -8,786,009 | $ | -10,007,553 | $ | -9,981,105 | |||||
Net loss per common share applicable to common | $ | -3.07 | $ | -5.22 | $ | -15.53 | |||||
stockholders, basic and diluted | |||||||||||
Weighted average number of common shares outstanding, | 2,862,094 | 1,918,723 | 642,513 | ||||||||
basic and diluted | |||||||||||
Advertising and Promotional Costs | |||||||||||
Advertising and promotional costs are expensed as incurred. Advertising and promotion expense was $151,000, $242,000, and $426,000 in the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||
Accumulated Other Comprehensive Items | |||||||||||
For the years ended December 31, 2013, 2012, and 2011, the Company had no components of other comprehensive income or loss other than net loss. | |||||||||||
Segments | |||||||||||
The Company operates in one segment for the sale of medical equipment and consumables. Substantially all of the Company’s assets, revenues, and expenses for the years ended December 31, 2013, 2012, and 2011 were located at or derived from operations in the United States. Revenues from sales outside the United States accounted for approximately 16% of total revenues in 2013, 7% of total revenues in 2012, and 6% of total revenues in 2011. | |||||||||||
Risks and Uncertainties | |||||||||||
The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, customers’ reimbursement from third-party payers, protection of proprietary technology, and compliance with regulations of the FDA and other governmental agencies. | |||||||||||
In late 2011, the Company launched NC-stat DPNCheck, which is a fast, accurate, and quantitative nerve conduction test for the assessment of systemic neuropathies such as DPN. In early 2013 the Company launched SENSUS for the treatment intractable pain, including pain associated with diabetic neuropathy. The future prospects of the Company are closely tied to its success with NC-stat DPNCheck and SENSUS in market acceptance and growth in future revenues. | |||||||||||
Recently Issued or Adopted Accounting Pronouncements | |||||||||||
There have been no recent accounting pronouncements or changes in accounting pronouncements since the recent accounting pronouncements described in the Company's 2012 Form 10-K that are of significance to the Company. | |||||||||||
StockBased_Compensation_and_St
Stock-Based Compensation and Stockholders' Equity | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||||
Stock-Based Compensation and Stockholdersb Equity | ' | |||||||||||||
3. Stock-Based Compensation and Stockholders’ Equity | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
During 2004, the Company adopted the 2004 Stock Option and Incentive Plan, as amended and restated in 2006, 2008, 2009, and 2012. At the Annual Meeting of Stockholders held on May 6, 2013, the stockholders of the Company approved the Company’s Fifth Amended and Restated 2004 Stock Option and Incentive Plan (the “2004 Stock Plan”), which, among other things, increased the number of shares of the Company’s common stock authorized for issuance thereunder by 300,000 shares. The 2004 Stock Plan, among other things, provides for granting of incentive and nonqualified stock option and stock bonus awards to officers, employees and outside consultants. Outstanding options under the 2004 Stock Plan generally vest over three or four years and terminate 10 years after the grant date, or earlier if the option holder is no longer an executive officer, employee, consultant, advisor or director, as applicable, of the Company. As of December 31, 2013, 576,279 shares of common stock were authorized for issuance under the 2004 Stock Plan, of which 128,644 shares had been issued, 309,046 shares were subject to outstanding options at a weighted average exercise price of $12.37 per share and 97,440 shares were available for future grant. | ||||||||||||||
During May 2009, the Company adopted the 2009 Non-Qualified Inducement Stock Plan (the “2009 Inducement Plan”). The 2009 Inducement Plan is intended to encourage and enable employees, including prospective employees, of the Company upon whose judgment, initiative, and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. The 2009 Inducement Plan, among other things, provides for the granting of awards, including non-qualified stock options, restricted stock, and unrestricted stock. As of December 31, 2013, 400,000 shares of common stock were authorized for issuance under the 2009 Inducement Plan, of which no shares had been issued and no shares were outstanding. | ||||||||||||||
The exercise price of each stock option issued under the 1996 and 1998 Stock Plans was specified by the Board of Directors at the time of grant. The exercise price of stock options awarded under the 2004 Stock Plan and the 2009 Inducement Plan may not be less than the fair market value of the common stock on the date of the option grant. For holders of more than 10% of the Company’s total combined voting power of all classes of stock, incentive stock options may not be granted at less than 110% of the fair market value of the Company’s common stock at the date of grant and for a term not to exceed five years. | ||||||||||||||
In June 2004, the Company adopted the 2004 Employee Stock Purchase Plan (the “2004 ESPP”). All of the Company’s employees who had been employed by the Company for at least 60 days and whose customary employment is for more than 20 hours per week and for more than five months in any calendar year were eligible to participate and any employee who owned 5% or more of the voting power or value of the Company’s stock was not eligible to participate. The 2004 ESPP authorized the issuance of up to a total of 10,417 shares of the Company’s common stock to participating employees. | ||||||||||||||
In May 2010, the Company adopted the 2010 Employee Stock Purchase Plan (the “2010 ESPP”). The 2010 ESPP initially authorized the issuance of up to a total of 6,945 shares, of the Company’s common stock to participating employees plus an annual increase on the first day of each of the Company's fiscal years beginning in 2011, equal to the lesser of (i) 6,945 shares, (ii) 1 percent of the shares of common stock outstanding on the last day of the immediately preceding fiscal year, or (iii) such lesser number of shares as is determined by the Board. At the Company’s Annual Meeting of Stockholders held on May 14, 2012, the stockholders of the Company approved the Company’s Amended and Restated 2010 Employee Stock Purchase Plan (the “Amended and Restated 2010 ESPP”), which, among other things, increased the number of shares of the Company’s common stock authorized for issuance thereunder by 16,667 shares. All of the Company’s full-time employees and certain part-time employees are eligible to participate in the Amended and Restated 2010 ESPP. For part-time employees to be eligible, they must have customary employment of more than five months in any calendar year and more than 20 hours per week. Employees who, after exercising their rights to purchase shares under the Amended and Restated 2010 ESPP, would own shares representing 5% or more of the voting power of the Company’s common stock, are ineligible to participate. | ||||||||||||||
Under the Amended and Restated 2010 ESPP, participating employees can authorize the Company to withhold up to 10% of their earnings during consecutive six-month payment periods for the purchase of the shares. At the conclusion of each period, participating employees can purchase shares at 85% of the lower of their fair market value at the beginning or end of the period. The Amended and Restated 2010 ESPP is regarded as a compensatory plan. For the years ended December 31, 2013 and 2012 the Company issued 16,094 and 8,895 shares of its common stock, respectively, under the Amended and Restated 2010 ESPP and the 2010 ESPP, respectively. As of December 31, 2013, there were 22,338 remaining shares to be issued under the Amended and Restated 2010 ESPP. | ||||||||||||||
The Company uses the Black-Scholes option pricing model for determining the fair value of shares of common stock issued or to be issued under the 2010 ESPP and the Amended and Restated 2010 ESPP. The following assumptions are used in determining fair value: The risk-free interest rate assumption is based on the United States Treasury’s constant maturity rate for a six month term (corresponding to the expected option term) on the date the option was granted. The expected dividend yield is zero because the Company does not currently pay dividends nor expects to do so during the expected option term. An expected term of six months is used based on the duration of each plan offering period. The volatility assumption is based on a consideration of stock price volatility over the most recent period of time corresponding to the expected term and is also based on expected future stock price volatility. | ||||||||||||||
The weighted average grant-date fair value of stock options used in the calculation of stock-based compensation expense in the accompanying statement of operations for the years ended December 31, 2013, 2012, and 2011 is calculated using the following assumptions: | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Risk-free interest rate | 1.4 – 1.7% | 0.6% – 0.9% | 0.9% – 2.3% | |||||||||||
Expected dividend yield | — | — | — | |||||||||||
Expected option term | 5 years | 5 years | 5 – 6 years | |||||||||||
Volatility | 70.00% | 70.00% | 70.00% | |||||||||||
The risk-free interest rate assumption is based on the United States Treasury’s constant maturity rate for a five year term (corresponding to the expected option term) on the date the option was granted. The expected dividend yield is zero as the Company does not currently pay dividends nor expects to do so during the expected option term. The expected option term of five years is estimated based on an analysis of actual option exercises and a review of comparable medical device companies. The volatility assumption is based on weekly historical volatility during the time period that corresponds to the expected option term, a review of comparable medical device companies and expected future stock price volatility. The pre-vesting forfeiture rate is based on the historical and projected average turnover rate of employees. | ||||||||||||||
A summary of option activity for the year ended December 31, 2013 is presented below: | ||||||||||||||
Number of | Weighted Average | Weighted Average Remaining | Aggregate | |||||||||||
Options | Exercise Price | Contractual Life (in years) | Intrinsic | |||||||||||
Value | ||||||||||||||
Outstanding at December 31, 2012 | 51,550 | $ | 73.38 | |||||||||||
Granted | 265,000 | 1.76 | ||||||||||||
Exercised | — | — | ||||||||||||
Forfeited | -5,945 | 19.89 | ||||||||||||
Expired | -459 | 81 | ||||||||||||
Outstanding at December 31, 2013 | 310,146 | 13.2 | 9.02 | $ | 306,925 | |||||||||
Vested or expected to vest at | 285,291 | 14.2 | 8.96 | 278,018 | ||||||||||
December 31, 2013 | ||||||||||||||
Exercisable at December 31, 2013 | 41,620 | 85.01 | 5.59 | — | ||||||||||
Expected to vest options are determined by applying the pre-vesting forfeiture rate to the total outstanding options. Aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate difference between the closing stock price of the Company’s common stock as of December 31, 2013, as applicable, and the exercise price for the in-the-money options) that would have been received by the option holders if all the in-the-money options had been exercised on December 31, 2013. | ||||||||||||||
The weighted average per share grant-date fair values of options granted during the years ended December 31, 2013, 2012, and 2011 was $1.02, $2.67, and $11.34, respectively. | ||||||||||||||
The aggregate intrinsic value of options issued or exercised during each of the years ended December 31, 2013, 2012, and 2011 was $0. | ||||||||||||||
Total unrecognized stock-based compensation costs related to non-vested stock options was $247,468, which related to 286,022 shares with a per share weighted fair value of $0.87 as of December 31, 2013. This unrecognized cost is expected to be recognized over a weighted average period of approximately 0.4 years. | ||||||||||||||
Stock options granted to non-employees are recorded at fair value and adjusted to market over the vesting period. The Company determines fair value using the Black-Scholes option pricing model, an expected term equal to the option term, a risk-free interest rate corresponding to the expected term, a stock price volatility over the most recent period of time corresponding to the expected term and also based on expected future stock price volatility, and a dividend yield of zero. There were no options granted to non-employees during the years ended December 31, 2013, 2012 or 2011. | ||||||||||||||
Beginning in 2010, certain employees have been granted restricted stock. During 2013, 2012, and 2011, the Company granted 2,000, 37,167, and 3,630 shares of restricted stock, respectively. The restricted stock vests based on continuing employment. The fair value of restricted stock is calculated based on the closing sale price of the Company’s common stock on the date of issuance. | ||||||||||||||
A summary of restricted stock activity for the year ended December 31, 2013 is presented below: | ||||||||||||||
Restricted Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Restricted shares at December 31, 2012 | 38,272 | $ | 5.25 | |||||||||||
Granted | 2,000 | 1.9 | ||||||||||||
Vested | -19,421 | -5.66 | ||||||||||||
Canceled | -3,375 | -4.2 | ||||||||||||
Restricted shares at December 31, 2013 | 17,476 | $ | 4.62 | |||||||||||
During the years ended December 31, 2013 and 2012, certain employees, in lieu of paying withholding taxes on the vesting of restricted stock, authorized the withholding of an aggregate of 4,214 and 721 shares, respectively, of common stock to satisfy the minimum tax withholding requirements related to such vesting. Shares withheld were calculated using the market price of the common stock. | ||||||||||||||
Cash received from option exercises and purchases under the 2004 ESPP and the 2010 ESPP for the years ended December 31, 2013, 2012, and 2011 was $26,000, $23,000, and $34,000, respectively. The Company issues new shares upon option exercises, purchases under the Company’s ESPPs, and vesting of restricted stock. | ||||||||||||||
The Company recorded stock-based compensation expense of $246,000, $319,000, and $837,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||
Stockholders’ Equity | ||||||||||||||
On June 4, 2013, the Company entered into a Securities Purchase Agreement, pursuant to which it issued (i) 248,147 shares of common stock at a price of $2.095 per share, (ii) 1,066.254 shares of Series A-1 Preferred Stock at a price of $1,000 per share, (iii) 3,370.510 shares of Series A-2 Preferred Stock at a price of $1,000 per share, and (iv) five year warrants to purchase up to 2,365,934 shares of common stock with an exercise price of $2.00 per share. During the second half of 2013, all of the Series A-1 Preferred Stock and Series A-2 Preferred Stock was converted into a total of 2,117,787 shares of common stock. In addition, during the fourth quarter of 2013, warrants to purchase 1,308,611 shares of common stock were exercised and the same number of shares of common stock was issued. Proceeds from these exercises totaled $2.6 million. See Note 14, Stockholders’ Equity, for further details. | ||||||||||||||
In March 2013, the Company awarded certain executives an aggregate of 119,370 shares of fully vested common stock with a value of $285,300 in settlement of 2012 incentive compensation obligations. The value of the shares issued reflected the $2.39 closing price of the Company’s common stock as reported on the NASDAQ Capital Market on March 4, 2013. | ||||||||||||||
In March 2012, the Company issued 23,127 shares of its common stock in satisfaction of the Company’s obligation to redeem certain warrants issued by the Company pursuant to Securities Purchase Agreements dated as of September 8, 2009. No cash was paid to redeem the warrants. | ||||||||||||||
On February 13, 2012, the Company completed a public offering of 1,421,735 Units at a price of $6.00 per Unit (the “2012 Offering”). Each Unit consisted of one share of the Company’s common stock and one warrant to purchase one half of a share of the Company’s common stock at an exercise price of $6.90 per share. The Company issued 1,421,735 shares of common stock and warrants to purchase 781,955 shares of common stock and received proceeds, net of discounts, commissions and expenses, of approximately $7.4 million. See Note 14, Stockholders’ Equity, for further details. | ||||||||||||||
As of December 31, 2013, the Company had 50,000,000 shares of common stock authorized and 5,945,581 shares issued and outstanding. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are not entitled to receive dividends unless declared by the Board of Directors. | ||||||||||||||
At December 31, 2013, the Company has reserved authorized shares of common stock for future issuance as follows: | ||||||||||||||
Warrants | 1,839,278 | |||||||||||||
Outstanding stock options | 310,146 | |||||||||||||
Possible future issuance under inducement plan | 400,000 | |||||||||||||
Possible future issuance under stock option plans | 97,440 | |||||||||||||
Possible future issuance under employee stock purchase plan | 22,338 | |||||||||||||
Total | 2,669,202 | |||||||||||||
On March 7, 2007, the Company’s Board of Directors adopted a Shareholder Rights Plan and declared a dividend distribution of one preferred stock purchase right for each outstanding share of the Company’s common stock to shareholders of record as of the close of business on March 8, 2007. As of December 31, 2013 and 2012, there was no preferred stock outstanding. | ||||||||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Intangible Assets | ' |
4. Intangible Assets | |
In January 2009, the Company acquired certain technological and intellectual property assets from Cyberkinetics Neurotechnology Systems, Inc., or Cyberkinetics, and Andara Life Science, Inc., a wholly-owned subsidiary of Cyberkinetics, for $350,000 in cash. The Company had been amortizing these intangible assets using the straight-line method over their economic lives, which was estimated to be five years. Research and development expenses included amortization of this technological and intellectual property of $17,500 for the quarter March 31, 2011. Following its decision to terminate development work related to this technology, the Company recorded within research and development expense in the second quarter of 2011 an impairment charge of $192,500 for the remaining unamortized balance of these assets. There was no amortization expense in the years ended December 31, 2013 and 2012. | |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
5. Inventories | ||||||||
Inventories consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Purchased components | $ | 205,320 | $ | 187,567 | ||||
Finished goods | 357,716 | 646,959 | ||||||
$ | 563,036 | $ | 834,526 | |||||
Fixed_Assets
Fixed Assets | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Fixed Assets | ' | |||||||||
6. Fixed Assets | ||||||||||
Fixed assets consist of the following: | ||||||||||
December 31, | ||||||||||
Estimated Useful Life (Years) | 2013 | 2012 | ||||||||
Computer and laboratory equipment | 3 | $ | 1,748,566 | $ | 2,689,519 | |||||
Furniture and equipment | 3 | 249,377 | 644,034 | |||||||
Production equipment | 7 | 997,297 | 997,297 | |||||||
Leasehold improvements | * | 185,255 | 179,997 | |||||||
3,180,495 | 4,510,847 | |||||||||
Less – accumulated depreciation | -2,951,182 | -4,216,950 | ||||||||
$ | 229,313 | $ | 293,897 | |||||||
* | Lesser of life of lease or estimated useful life. | |||||||||
Depreciation expense was $150,663, $239,168, and $359,432 for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||
A capital lease was included as a component of furniture and equipment at December 31, 2012. Amortization of assets under this capital lease is included in depreciation expense. See Note 10 — Commitments and Contingencies for more information regarding this capital lease. | ||||||||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Expenses | ' | |||||||
7. Accrued Expenses | ||||||||
Accrued expenses consist of the following for the years ended December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Technology fees | $ | 450,000 | $ | 450,000 | ||||
Professional services | 263,642 | 248,759 | ||||||
Clinical study obligations | 51,424 | 24,490 | ||||||
Sales taxes | 32,688 | 62,385 | ||||||
Supplier obligations | — | 105,132 | ||||||
Other | 72,442 | 58,077 | ||||||
$ | 870,196 | $ | 948,843 | |||||
Restructuring_Related_Activity
Restructuring Related Activity | 12 Months Ended |
Dec. 31, 2013 | |
Restructuring and Related Activities [Abstract] | ' |
Restructuring Related Activity | ' |
8. Restructuring Related Activity | |
In January 2011, the Company announced it had restructured its neurodiagnostic activities to more efficiently focus its efforts on its installed base of active accounts, to shift distribution to independent sales representatives, and to reduce cash consumption. Twenty-five positions were eliminated, primarily in sales. Charges totaled $2.2 million related to severance costs and inventory. Approximately $2.0 million, consisting of $0.2 million in severance and $1.8 million in inventory charges, was recorded as of December 31, 2010 and the balance of approximately $0.2 million in severance was recorded in 2011. The full amount of the charge was paid as of December 31, 2011. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Income Taxes | ' | ||||||||||
9. Income Taxes | |||||||||||
Current income tax expense (benefit) attributable to continuing operations consists of the following for the years ended December 31, 2013, 2012, and 2011. | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal | — | — | — | ||||||||
State | — | — | — | ||||||||
Total | — | — | — | ||||||||
The Company’s effective income tax rate differs from the statutory federal income tax rate as follows for the years ended December 31, 2013, 2012, and 2011. | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal tax provision (benefit) rate | -34 | % | -34 | % | -34 | % | |||||
State tax provision, net of federal provision | -4.8 | -3.5 | -3.4 | ||||||||
Permanent items | 3.4 | 0.8 | 1.9 | ||||||||
Federal research and development credits | -1.7 | — | -0.5 | ||||||||
Valuation allowance | 37.1 | 36.7 | 36 | ||||||||
Effective income tax rate | — | % | — | % | — | % | |||||
The Company’s deferred tax assets consist of the following: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 32,253,602 | $ | 30,514,469 | |||||||
Research and development credit carryforwards | 1,735,265 | 1,547,374 | |||||||||
Accrued expenses | 493,075 | 643,952 | |||||||||
Stock-based compensation | 565,077 | 593,131 | |||||||||
Other | 1,061,212 | 1,048,541 | |||||||||
Total gross deferred tax assets | 36,108,231 | 34,347,467 | |||||||||
Valuation allowance | -36,108,231 | -34,347,467 | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||
At December 31, 2013, the Company has federal and state net operating loss carryforwards (“NOL”) of $97.1 million and $18.6 million, respectively, as well as federal and state tax credits of $1.1 million and $977,000, respectively, which may be available to reduce future taxable income and the related taxes thereon. This amount includes tax benefits of $3.9 million and $71,000 attributable to NOL and tax credit carryforwards, respectively, that result from the exercise of employee stock options. The tax benefit of these items will be recorded as a credit to additional paid-in capital upon realization of the deferred tax asset or reduction in income taxes payable. The federal NOL’s begin to expire in 2019 and the state NOL’s begin to expire in 2014. The federal and state research and development credits both begin to expire in 2018. | |||||||||||
In accordance with the provisions of the Income Taxes topic of the Codification, the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which are comprised principally of net operating losses. Management has determined that it is more likely than not that the Company will not recognize the benefits of federal and state deferred tax assets and, as a result, a valuation allowance of approximately and $36.1 million and $34.3 million has been established at December 31, 2013 and 2012, respectively. | |||||||||||
Utilization of the NOL and research and development credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that have occurred previously or that could occur in the future, as provided by Section 382 of the Internal Revenue Code of 1986, as well as similar state provisions. Ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. | |||||||||||
If the Company has experienced a change of control, utilization of its NOL or tax credits carryforwards would be subject to an annual limitation under Section 382. Any limitation may result in expiration of a portion of the NOL or research and development credit carryforwards before utilization. Subsequent ownership changes could further impact the limitation in future years. Further, until a study is completed and any limitation known, no amounts are being presented as an uncertain tax position. | |||||||||||
A full valuation allowance has been provided against the Company’s NOL carryforwards and research and development credit carryforwards and, if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the balance sheet or statement of operations if an adjustment were required. | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
10. Commitments and Contingencies | |||||
Operating Leases | |||||
Lease Agreement with Fourth Avenue LLC | |||||
In June 2013, the Company amended the Lease Agreement dated October 18, 2000 between Fourth Avenue LLC and the Company for office and engineering laboratory space to extend the term of the lease through March 31, 2015. Base rent for the period January 2014 through March 2015 is $52,917 per month. | |||||
Future minimum lease payments under noncancelable operating leases as of December 31, 2013 are as follows: | |||||
2014 | $ | 635,004 | |||
2015 | 158,751 | ||||
Total minimum lease payments | $ | 793,755 | |||
Total recorded rent expense was $635,004, $709,164, and $764,754 for the years ended December 31, 2013, 2012, and 2011, respectively. The Company records rent expense on its facility lease on a straight-line basis over the lease term. | |||||
Capital Lease | |||||
In October 2010, the Company entered into a non-cancelable capital lease for copiers located at its corporate headquarters valued at $60,410, which expired in September 2013. | |||||
Future minimum lease payments under the capital lease as of December 31, 2012 were as follows: | |||||
2013 | $ | 18,446 | |||
Total minimum lease payments | 18,446 | ||||
Less: Amount representing imputed interest | 517 | ||||
Present value of future minimum lease payments | $ | 17,929 | |||
Other Commitments | |||||
At December 31, 2013, other commitments, comprised of purchase orders, totaled approximately $147,806. | |||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
11. Fair Value Measurements | ||||||||||||||
The Fair Value Measurements and Disclosures Topic of the Codification defines fair value, establishes a framework for measuring fair value in applying generally accepted accounting principles, and expands disclosures about fair value measurements. This Codification topic identifies two kinds of inputs that are used to determine the fair value of assets and liabilities: observable and unobservable. Observable inputs are based on market data or independent sources while unobservable inputs are based on the Company’s own market assumptions. Once inputs have been characterized, this Codification topic requires companies to prioritize the inputs used to measure fair value into one of three broad levels. Fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values identified by Level 2 inputs utilize observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Fair values identified by Level 3 inputs are unobservable data points and are used to measure fair value to the extent that observable inputs are not available. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use at pricing the asset or liability. | ||||||||||||||
The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis for the periods presented and indicates the fair value hierarchy of the valuation techniques it utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates, and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. | ||||||||||||||
Fair Value Measurements at December 31, 2013 Using | ||||||||||||||
December 31, | Quoted Prices in Active Markets | Significant | Significant Unobservable | |||||||||||
2013 | for Identical Assets | Other Observable | Inputs (Level 3) | |||||||||||
(Level 1) | Inputs | |||||||||||||
(Level 2) | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | 3,926,600 | $ | 3,926,600 | $ | — | $ | — | ||||||
Total | $ | 3,926,600 | $ | 3,926,600 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||||
Common stock warrants | $ | 1,938,603 | $ | — | $ | — | 1,938,603 | |||||||
Total | $ | 1,938,603 | $ | — | $ | — | $ | 1,938,603 | ||||||
Fair Value Measurements at December 31, 2012 Using | ||||||||||||||
December 31, | Quoted Prices in Active Markets | Significant | Significant Unobservable | |||||||||||
2012 | for Identical Assets | Other Observable | Inputs (Level 3) | |||||||||||
(Level 1) | Inputs | |||||||||||||
(Level 2) | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | 519,242 | $ | 519,242 | $ | — | $ | — | ||||||
Total | $ | 519,242 | $ | 519,242 | $ | — | $ | — | ||||||
Due to the lack of market quotes relating to our common stock warrants, the fair value of the common stock warrants was determined at December 31, 2013 using the Black-Scholes model, which is based on Level 3 inputs. As of December 31, 2013, inputs used in the Black-Scholes model include our stock price as of that date of $2.92, exercise price of $2.00, expected volatility of 67.60%, risk free interest rate of 1.71%, expected term of approximately four years and 5 months, and no dividends. The assumptions used may change as the underlying sources of these assumptions and market conditions change. Based on this calculation, the Company recorded a common stock warrants liability of $1.9 million at December 31, 2013. In addition, 1.3 million warrants were exercised during the fourth quarter of 2013 and these warrants were adjusted to their fair value at the dates of exercise. The total liability for the exercised warrants of $2.4 million was then reclassified to additional paid-in capital. The Company did not have any financial liabilities carried at fair value as of December 31, 2012. | ||||||||||||||
The following table provides a summary of changes in the fair value of the Company's Level 3 financial liabilities for the year ended December 31, 2013: | ||||||||||||||
Balance at December 31, 2012 | $ | — | ||||||||||||
Initial fair value of warrants at issuance in June 2013 | 4,011,205 | |||||||||||||
Change in fair value of warrant liability | 289,657 | |||||||||||||
Reclassification of liability to additional paid-in capital upon exercise of warrants | -2,362,259 | |||||||||||||
Balance at December 31, 2013 | $ | 1,938,603 | ||||||||||||
Retirement_Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Retirement Plan | ' |
12. Retirement Plan | |
The Company established a 401(k) defined contribution savings plan for its employees who meet certain service period and age requirements. Contributions are permitted up to the maximum allowed under the Internal Revenue Code of each covered employee’s salary. The savings plan permits the Company to contribute at its discretion. For the years ended December 31, 2013, 2012, and 2011 the Company made no contributions to the plan. | |
Credit_Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Credit Facility | ' |
13. Credit Facility | |
The Company is party to a Loan and Security Agreement, or the Credit Facility, with a bank. As of December 31, 2013 the Credit Facility permitted the Company to borrow up to $2.5 million on a revolving basis. The Credit Facility was subsequently amended and extended until January 15, 2015. Under terms of the amended and extended Agreement the amount of the Credit Facility will remain at $2.5 million until December 31, 2014. Thereafter, until its expiry on January 15, 2015, the Credit Facility will be reduced to $750,000 if the Company has not yet completed an equity offering as defined in the Agreement. Amounts borrowed under the Credit Facility will bear interest equal to the prime rate plus 0.5%. Any borrowings under the Credit Facility will be collateralized by the Company’s cash, accounts receivable, inventory, and equipment. The Credit Facility includes traditional lending and reporting covenants. These include certain financial covenants applicable to liquidity that are to be maintained by the Company. As of December 31, 2013, the Company was in compliance with these covenants and had not borrowed any funds under the Credit Facility. The amount of $225,000 of the Credit Facility limit is restricted to support a letter of credit issued in favor of the Company’s landlord in the lease of its facilities in Waltham, Massachusetts. Consequently, the amount available for borrowing under the Credit Facility as of December 31, 2013 was $2,275,000. | |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholdersb Equity | ' |
14. Stockholders’ Equity | |
On June 4, 2013, the Company entered into a Purchase Agreement providing for the issuance of (i) 248,147 shares of common stock at a price of $2.095 per share, (ii) 1,066.254 shares of Series A-1 Preferred Stock at a price of $1,000 per share, (iii) 3,370.510 shares of Series A-2 Preferred Stock at a price of $1,000 per share, and (iv) five year warrants to purchase up to 2,365,934 shares of common stock with an exercise price of $2.00 per share. The 2013 Offering resulted in approximately $5.0 million in gross proceeds, before deducting placement agent fees and other expenses. Net proceeds from the 2013 Offering were approximately $4.5 million. | |
Each share of Preferred Stock had a stated value of $1,000 and was convertible at the option of the holder into the number of shares of common stock determined by dividing the stated value by the initial conversion price of $2.095, which was subject to adjustment as provided in each Certificate of Designation for the Preferred Stock. The Preferred Stock had no dividend rights, liquidation preference or other preferences over common stock and had no voting rights except as provided in each Certificate of Designation for the Preferred Stock and as required by law. During the second half of 2013, all of the Series A-1 Preferred Stock and Series A-2 Preferred Stock was converted into a total of 2,117,787 shares of common stock. The warrants to purchase 2,365,934 shares of common stock were exercisable immediately, have a five-year term, and a per share exercise price of $2.00. During the fourth quarter of 2013, warrants to purchase 1,308,611 shares of common stock were exercised and the same number of shares of common stock was issued. Proceeds from these exercises totaled $2.6 million. | |
The terms and conditions of the Preferred Stock were evaluated based on the guidance of the Derivatives and Hedging topic of the Codification to determine if the conversion feature was an embedded derivative requiring bifurcation. It was concluded that bifurcation was not required because the conversion feature was clearly and closely related to the Preferred Stock. The conversion price at which shares of Preferred Stock were convertible into shares of common stock was determined to be lower than the fair value of common stock at the date of the Purchase Agreement. This “in-the-money” beneficial conversion feature, or BCF, required separate recognition and measurement of its intrinsic value (i.e., the amount of the increase in value that holders of Preferred Stock would realize upon conversion based on the value of the conversion shares on the date of the Purchase Agreement). The BCF measurement totaled $766,900, an amount limited by the transaction proceeds which had been allocated to the Preferred Stock. Because there was not a stated redemption date for the shares of Preferred Stock, the BCF was recognized as a deemed dividend attributable to the Preferred Stock and is reflected as an adjustment in the calculation of earnings per share. | |
The warrants issued in connection with the 2013 Offering are within the scope of the Derivatives and Hedging topic of the Codification. This Codification topic requires issuers to classify as liabilities (or assets under certain circumstances) financial instruments which require an issuer to settle in registered shares. As the warrants are required to be settled in registered shares when exercised, the Company has reflected the warrants as a liability in the balance sheet. The fair value of the warrants at the date of the 2013 Offering was estimated at $4.0 million using a Black-Scholes model with the following assumptions: stock price of $2.60, exercise price of $2.00, expected volatility of 73.6%, risk free interest rate of 1.05%, expected term of five years, and no dividends. The warrants were revalued at June 30, 2013, September 30, 2013, and December 31, 2013 using the same Black-Scholes model. The liability for the remaining warrants was reflected in the balance sheet at December 31, 2013 in the amount of $1.9 million and non-operating expense of $290,000 has been recorded through December 31, 2013. The Company will continue to revalue unexercised warrants at each reporting period over the life of the warrants using the Black-Scholes model and the changes in the fair value of the warrants will be recognized in the Company's statement of operations. | |
On July 26, 2013, the Company filed a Registration Statement on Form S-8 to register 386,111 additional shares of the Company’s common stock for issuance under the Company’s 2009 Non-Qualified Inducement Stock Plan (the “2009 Stock Plan”). An aggregate of 13,889 shares of common stock to be issued under the 2009 Stock Plan were previously registered on June 3, 2009. The amount previously registered reflects two 1-for-6 reverse splits of the Company’s common stock completed on September 1, 2011 and February 15, 2013. | |
On February 13, 2012, the Company completed a public offering of 1,421,735 Units at a price of $6.00 per Unit (the “Offering”). Each Unit consists of one share of the Company’s common stock and one warrant to purchase one half of a share of the Company’s common stock. The Company issued 1,421,735 shares of common stock and warrants to purchase 710,868 shares of common stock and received offering proceeds, net of discounts, commissions and expenses, of approximately $7.4 million. Each warrant entitles the holder to purchase at any time during the period commencing 180 days after the date of the Offering until the date five years following the closing date of the Offering, one half of a share of the Company’s common stock. Two warrants would need to be exercised to acquire one share of the Company’s common stock at an exercise price of $6.90 (115% of the aggregate offering price for a unit). In addition, the placement agent for the Offering was issued warrants to purchase 71,087 shares of common stock (equal to 5.0% of the number of shares of common stock included in the Units sold in the Offering) at an exercise price of $7.50 per share (125% of the aggregate offering price for a Unit). The placement agent’s warrants will be exercisable at any time beginning one year after the date of issuance and will expire on the fifth anniversary of the effectiveness of the registration statement related to the Offering. | |
The fair value of the warrants was estimated at $2.4 million using a Black-Scholes model with the following assumptions: expected volatility of 73.5%, risk free interest rate of 0.85%, expected life of five years, and no dividends. The volatility assumption is based on weekly historical volatility during the time period that corresponds to the expected option term, a review of comparable medical device companies, and expected future stock price volatility. The relative fair value of the warrants was recorded as equity. | |
Reverse_Stock_Splits
Reverse Stock Splits | 12 Months Ended |
Dec. 31, 2013 | |
Reverse Stock Split Disclosure [Abstract] | ' |
Reverse Stock Splits | ' |
15. Reverse Stock Splits | |
On September 1, 2011, the Company filed a Certificate of Amendment to its Restated Certificate of Incorporation, as amended, with the Secretary of State of the State of Delaware, to effect a 1-for-6 reverse stock split of its common stock, or the Reverse Stock Split. This action had previously been approved by the Company’s stockholders at the Company’s annual meeting held on May 16, 2011. As a result of the Reverse Stock Split, every six shares of the Company’s pre-reverse split common stock were combined and reclassified into one share of its common stock. No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who otherwise would have been entitled to receive a fractional share in connection with the Reverse Stock Split received a cash payment in lieu thereof. The par value and other terms of the common stock were not affected by the Reverse Stock Split. | |
The Company’s shares outstanding immediately prior to the Reverse Stock Split totaled 23,331,646, which were adjusted to 3,888,607 shares outstanding as a result of the Reverse Stock Split. On February 15, 2013, the Company filed a Certificate of Amendment to its Restated Certificate of Incorporation, as amended, with the Secretary of State of the State of Delaware, to effect a second 1-for-6 reverse stock split of its common stock, or the Second Reverse Stock Split. This action had previously been approved by the Company’s stockholders at a special meeting of stockholders held on December 7, 2012. As a result of the Second Reverse Stock Split, every six shares of the Company’s pre-reverse split common stock were combined and reclassified into one share of its common stock. No fractional shares were issued in connection with the Second Reverse Stock Split. Stockholders who otherwise would have been entitled to receive a fractional share in connection with the Second Reverse Stock Split received a cash payment in lieu thereof. The par value and other terms of the common stock were not affected by the Second Reverse Stock Split. | |
The Company’s shares outstanding immediately prior to the Second Reverse Stock Split totaled 12,845,228. These were adjusted to 2,140,871 shares outstanding as a result of the Reverse Stock Split. | |
Management_Retention_and_Incen
Management Retention and Incentive Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Management Retention and Incentive Plan | ' |
16. Management Retention and Incentive Plan | |
On August 2, 2012, the Company adopted the Management Retention and Incentive Plan (the “Plan”), under which a portion of the consideration payable upon a change of control transaction, as defined in the Plan, would be paid in cash to certain executive officers and key employees and recorded as compensation expense within the Statement of Operations during the period in which the change of control transaction occurs. The Plan is structured to work in conjunction with, and not replace, the Company’s other incentive programs and is designed to provide market-based incentives which will be reduced over time by any future equity grants to participants. | |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | ' | |||||||||||||||||
Schedule II — Valuation and Qualifying Accounts | ||||||||||||||||||
Description | Balance at | Charged to | Charged to | Recoveries/ | Balance at | |||||||||||||
Beginning of Period | costs and | other | (Deductions) | End of | ||||||||||||||
expenses | accounts | Period | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Allowance for Doubtful | $ | 130,000 | $ | 111,296 | — | $ | -206,296 | 35,000 | ||||||||||
Accounts | ||||||||||||||||||
Sales Returns Reserve | 21,616 | — | 38,278 | -58,999 | 895 | |||||||||||||
Deferred Tax Asset | 34,347,467 | 2,976,809 | — | -1,216,045 | -2 | 36,108,231 | ||||||||||||
Valuation Allowance | ||||||||||||||||||
31-Dec-12 | ||||||||||||||||||
Allowance for Doubtful | $ | 286,612 | $ | -12,999 | $ | — | $ | -143,613 | -1 | $ | 130,000 | |||||||
Accounts | ||||||||||||||||||
Sales Returns Reserve | 13,302 | — | 180,066 | -171,752 | -1 | 21,616 | ||||||||||||
Deferred Tax Asset | 30,487,085 | 3,900,388 | — | -40,006 | -2 | 34,347,467 | ||||||||||||
Valuation Allowance | ||||||||||||||||||
31-Dec-11 | ||||||||||||||||||
Allowance for Doubtful | $ | 379,100 | $ | 30,825 | $ | — | $ | -123,313 | -1 | $ | 286,612 | |||||||
Accounts | ||||||||||||||||||
Sales Returns Reserve | 26,865 | — | 272,607 | -286,170 | -1 | 13,302 | ||||||||||||
Deferred Tax Asset | 28,670,035 | 3,803,223 | — | -1,986,173 | -2 | 30,487,085 | ||||||||||||
Valuation Allowance | ||||||||||||||||||
-1 | Net write-offs. | |||||||||||||||||
-2 | Expiration of Federal and State Net Operating Loss Carryforwards and other reductions. | |||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Use of Estimates and Assumptions | ' | ||||||||||
Use of Estimates and Assumptions | |||||||||||
The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during reporting periods. Actual results could differ from those estimates. | |||||||||||
The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances and regularly assesses these estimates, but actual results could differ materially from these estimates. Effects of changes in estimates are recorded in the period in which they occur. | |||||||||||
Cash and Cash Equivalents | ' | ||||||||||
Cash and Cash Equivalents | |||||||||||
The Company considers all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. Cash equivalents are recorded at cost which approximates fair value. The Company invests cash primarily in a money market account and other investments which management believes are subject to minimal credit and market risk. | |||||||||||
Concentrations of Credit Risk | ' | ||||||||||
Concentrations of Credit Risk | |||||||||||
Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents in bank deposit accounts and trade receivables. The Company invests its funds in highly rated institutions and limits its investment in any individual account so that they do not exceed FDIC limits. The Company has not experienced significant losses related to cash and cash equivalents and does not believe it is exposed to any significant credit risks relating to its cash and cash equivalents. | |||||||||||
At December 31, 2013, one customer accounted for 14% of accounts receivable and a second customer accounted for 12% of accounts receivable. For the years ended December 31, 2013, 2012, and 2011, no single customer accounted for more than 10% of revenue. | |||||||||||
The Company relies on in-house assembly and three third-party manufacturers to manufacture the major portion of its current products and product components. The disruption or termination of the supply of these products or a significant increase in the cost of these products from these sources could have an adverse effect on the Company’s business, financial position, and results of operations. | |||||||||||
Inventories | ' | ||||||||||
Inventories | |||||||||||
Inventories, consisting primarily of purchased components, are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. The Company writes down inventory to its net realizable value for excess or obsolete inventory. | |||||||||||
Fair Value | ' | ||||||||||
Fair Value | |||||||||||
The carrying amounts of the Company’s accounts receivable, accounts payable, and accrued expenses approximate their fair value at December 31, 2013 and 2012 due to the short-term nature of these assets and liabilities. The Company’s cash equivalents and its warrant liability are carried at fair value determined according to the fair value hierarchy described in Note 11. | |||||||||||
Revenue Recognition | ' | ||||||||||
Revenue Recognition | |||||||||||
The Company recognizes revenue when the following criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred and risk of loss has passed, the seller’s price to the buyer is fixed or determinable, and collection is reasonably assured. | |||||||||||
Revenues associated with the sale of the ADVANCE devices to customers and distributors are recognized upon shipment, provided that the selling price is fixed or determinable, persuasive evidence of an arrangement exists, collection of receivables is reasonably assured, product returns are reasonably estimable, and no continuing obligations exist. The revenues from the sale of an ADVANCE communication hub together with access to NeuroMetrix information systems are considered one unit of accounting and deferred and recognized on a straight-line basis over the estimated period of time that the Company provides the service associated with the information systems of three years. The resulting deferred revenue and deferred costs are presented as separate line items on the accompanying balance sheet. Revenues related to extended service agreements for the devices are recognized ratably over the term of the extended service agreement. | |||||||||||
Revenues associated with the sale of the SENSUS and NC-stat DPNCheck devices are recognized upon shipment, provided that the selling price is fixed or determinable, persuasive evidence of an arrangement exists, collection of receivables is reasonably assured, product returns are reasonably estimable, and no continuing obligations exist. | |||||||||||
Revenues also include sales of consumables, including single use nerve specific electrodes and other accessories. These revenues are recognized upon shipment provided that the selling price is fixed or determinable, persuasive evidence of an arrangement exists, collection of receivables is reasonably assured, and product returns are reasonably estimable. | |||||||||||
When multiple elements are contained in a single arrangement, the Company allocates revenue between the elements based on their relative selling prices. The Company determines selling price using vendor specific objective evidence, or VSOE, if it is available, third-party evidence, or TPE, if VSOE is not available, and best estimate of selling price, or BESP, if neither VSOE nor TPE are available. The Company generally expects that it will not be able to establish TPE due to the nature of the markets in which it competes, and, as such, it will typically determine selling price using VSOE or if not available, BESP. The objective of BESP is to determine the selling price of a deliverable on a standalone basis. The Company’s determination of BESP involves a weighting of several factors based on the specific facts and circumstances of an arrangement. Specifically, the Company considers the cost to produce the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar parts, its ongoing pricing strategy, the value of any enhancements that have been built into the deliverable, and the characteristics of the varying markets in which the deliverable is sold. | |||||||||||
Revenue recognition involves judgments, including assessments of expected returns and expected customer relationship periods. The Company analyzes various factors, including a review of specific transactions, its historical returns, average customer relationship periods, customer usage, customer balances, and market and economic conditions. Changes in judgments or estimates on these factors could materially impact the timing and amount of revenues and costs recognized. Should market or economic conditions deteriorate, the Company’s actual return or bad debt experience could exceed its estimate. | |||||||||||
Certain product sales are made with a 30-day right of return. Since the Company can reasonably estimate future returns, it recognizes revenues associated with product sales that contain a right of return upon shipment and at the same time it records a sales return reserve, which reduces revenue and accounts receivable by the amount of estimated returns. | |||||||||||
Accounts Receivable | ' | ||||||||||
Accounts Receivable | |||||||||||
Accounts receivable on the balance sheet are recorded net of the allowance for doubtful accounts receivable and the reserve for estimated returns. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company reviews its allowance for doubtful accounts and determines the allowance based on an analysis of customer past payment history, product usage activity, and recent communications between the Company and the customer. Past due balances are reviewed individually for collectibility. Account balances are written-off against the allowance when the Company feels it is probable the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to its customers. | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | |||||||||||
The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company’s financial statements contain certain deferred tax assets, which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. In accordance with the provisions of the Income Taxes topic of the Codification, the Company is required to establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. The Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. | |||||||||||
Utilization of the NOL and research and development credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that have occurred previously or that could occur in the future, as provided by Section 382 of the Internal Revenue Code of 1986, as well as similar state provisions. Ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. | |||||||||||
If the Company has experienced a change of control, utilization of its NOL or tax credits carryforwards would be subject to an annual limitation under Section 382. Any limitation may result in expiration of a portion of the NOL or research and development credit carryforwards before utilization. Subsequent ownership changes could further impact the limitation in future years. Further, until a study is completed and any limitation known, no amounts are being presented as an uncertain tax position. | |||||||||||
A full valuation allowance has been provided against the Company’s NOL carryforwards and research and development credit carryforwards and, if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the balance sheet or statement of operations if an adjustment were required. | |||||||||||
Management performed a two-step evaluation of all tax positions, ensuring that these tax return positions meet the “more likely than not” recognition threshold and can be measured with sufficient precision to determine the benefit recognized in the financial statements. These evaluations provide management with a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements certain tax positions that the Company has taken or expects to take on income tax returns. | |||||||||||
Research and Development | ' | ||||||||||
Research and Development | |||||||||||
Costs incurred in the research and development of the Company’s products are expensed as incurred. Included in research and development costs are wages, benefits, product design consulting, and other operating costs such as facilities, supplies, and overhead directly related to the Company’s research and development efforts. | |||||||||||
Product Warranty Costs | ' | ||||||||||
Product Warranty Costs | |||||||||||
The Company accrues estimated product warranty costs at the time of sale which are included in cost of sales in the statements of operations. The amount of the accrued warranty liability is based on historical information such as past experience, product failure rates, number of units repaired, and estimated cost of material and labor. The liabilities for product warranty costs of $4,719 and $18,629 at December 31, 2013 and 2012, respectively, are included in accrued expenses in the accompanying balance sheets. | |||||||||||
Fixed Assets and Long-Lived Assets | ' | ||||||||||
Fixed Assets and Long-Lived Assets | |||||||||||
Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful life of each asset. Expenditures for repairs and maintenance are charged to expense as incurred. On disposal, the related assets and accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the Company’s statement of operations. Leasehold improvements are amortized over the shorter of the estimated useful life of the improvement or the remaining term of the lease. | |||||||||||
The Company periodically evaluates the recoverability of its fixed assets and other long-lived assets whenever events or changes in circumstances indicate that an event of impairment may have occurred. This periodic review may result in an adjustment of estimated depreciable lives or asset impairment. When indicators of impairment are present, the carrying values of the asset are evaluated in relation to the assets operating performance and future undiscounted cash flows of the underlying assets. If the future undiscounted cash flows are less than their book value, an impairment may exist. The impairment is measured as the difference between the book value and the fair value of the underlying asset. Fair values are based on estimates of the market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. | |||||||||||
Accounting for Stock-Based Compensation | ' | ||||||||||
Accounting for Stock-Based Compensation | |||||||||||
Stock-based compensation cost is generally recognized ratably over the requisite service period. The Company uses the Black-Scholes option pricing model for determining the fair value of its stock options and amortizes its stock-based compensation expense using the straight-line method. The Black-Scholes model requires certain assumptions that involve judgment. Such assumptions are the expected share price volatility, expected life of options, expected annual dividend yield, and risk-free interest rate (See Note 3 — Stock-Based Compensation and Stockholders’ Equity). | |||||||||||
Net Loss per Common Share | ' | ||||||||||
Net Loss per Common Share | |||||||||||
Basic net loss per common share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic net income per share. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period plus the dilutive effect of the weighted average number of outstanding instruments such as options, warrants, restricted stock, and preferred stock. Because the Company has reported a net loss for all periods presented, diluted loss per common share is the same as basic loss per common share, as the effect of utilizing the fully diluted share count would have reduced the net loss per common share. Therefore, in calculating net loss per share amounts, shares underlying the following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net loss per common share because their effect was anti-dilutive for each of the periods presented: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Options | 161,391 | 53,999 | 91,411 | ||||||||
Warrants | 2,055,733 | 741,546 | 238,413 | ||||||||
Unvested restricted stock | 22,387 | 31,699 | 4,725 | ||||||||
Total | 2,239,511 | 827,244 | 334,549 | ||||||||
The Beneficial Conversion Feature, or BCF, recorded in the 2013 Offering has been recognized as a deemed dividend attributable to the Preferred Stock and is reflected as an adjustment in the calculation of earnings per share. See Note 14, Stockholders’ Equity, for further details. | |||||||||||
Net loss per common share applicable to common stockholders, basic and diluted was determined as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net loss | $ | -8,019,137 | $ | -10,007,553 | $ | -9,981,105 | |||||
Deemed dividend attributable to preferred stockholders in | -766,872 | — | — | ||||||||
connection with beneficial conversion features | |||||||||||
Net loss applicable to common stockholders | $ | -8,786,009 | $ | -10,007,553 | $ | -9,981,105 | |||||
Net loss per common share applicable to common | $ | -3.07 | $ | -5.22 | $ | -15.53 | |||||
stockholders, basic and diluted | |||||||||||
Weighted average number of common shares outstanding, | 2,862,094 | 1,918,723 | 642,513 | ||||||||
basic and diluted | |||||||||||
Advertising and Promotional Costs | ' | ||||||||||
Advertising and Promotional Costs | |||||||||||
Advertising and promotional costs are expensed as incurred. Advertising and promotion expense was $151,000, $242,000, and $426,000 in the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||
Accumulated Other Comprehensive Items | ' | ||||||||||
Accumulated Other Comprehensive Items | |||||||||||
For the years ended December 31, 2013, 2012, and 2011, the Company had no components of other comprehensive income or loss other than net loss. | |||||||||||
Segments | ' | ||||||||||
Segments | |||||||||||
The Company operates in one segment for the sale of medical equipment and consumables. Substantially all of the Company’s assets, revenues, and expenses for the years ended December 31, 2013, 2012, and 2011 were located at or derived from operations in the United States. Revenues from sales outside the United States accounted for approximately 16% of total revenues in 2013, 7% of total revenues in 2012, and 6% of total revenues in 2011. | |||||||||||
Risks and Uncertainties | ' | ||||||||||
Risks and Uncertainties | |||||||||||
The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, customers’ reimbursement from third-party payers, protection of proprietary technology, and compliance with regulations of the FDA and other governmental agencies. | |||||||||||
In late 2011, the Company launched NC-stat DPNCheck, which is a fast, accurate, and quantitative nerve conduction test for the assessment of systemic neuropathies such as DPN. In early 2013 the Company launched SENSUS for the treatment intractable pain, including pain associated with diabetic neuropathy. The future prospects of the Company are closely tied to its success with NC-stat DPNCheck and SENSUS in market acceptance and growth in future revenues. | |||||||||||
Recently Issued or Adopted Accounting Pronouncements | ' | ||||||||||
Recently Issued or Adopted Accounting Pronouncements | |||||||||||
There have been no recent accounting pronouncements or changes in accounting pronouncements since the recent accounting pronouncements described in the Company's 2012 Form 10-K that are of significance to the Company. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Schedule of antidilutive securities excluded from computation of earnings per share | ' | ||||||||||
the following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net loss per common share because their effect was anti-dilutive for each of the periods presented: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Options | 161,391 | 53,999 | 91,411 | ||||||||
Warrants | 2,055,733 | 741,546 | 238,413 | ||||||||
Unvested restricted stock | 22,387 | 31,699 | 4,725 | ||||||||
Total | 2,239,511 | 827,244 | 334,549 | ||||||||
Determination of net loss per common share | ' | ||||||||||
Net loss per common share applicable to common stockholders, basic and diluted was determined as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Net loss | $ | -8,019,137 | $ | -10,007,553 | $ | -9,981,105 | |||||
Deemed dividend attributable to preferred stockholders in | -766,872 | — | — | ||||||||
connection with beneficial conversion features | |||||||||||
Net loss applicable to common stockholders | $ | -8,786,009 | $ | -10,007,553 | $ | -9,981,105 | |||||
Net loss per common share applicable to common | $ | -3.07 | $ | -5.22 | $ | -15.53 | |||||
stockholders, basic and diluted | |||||||||||
Weighted average number of common shares outstanding, | 2,862,094 | 1,918,723 | 642,513 | ||||||||
basic and diluted | |||||||||||
StockBased_Compensation_and_St1
Stock-Based Compensation and Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||||
Weighted Average Grant-Date Fair Value Used in the Calculation of Stock-Based Compensation Expense | ' | |||||||||||||
The weighted average grant-date fair value of stock options used in the calculation of stock-based compensation expense in the accompanying statement of operations for the years ended December 31, 2013, 2012, and 2011 is calculated using the following assumptions: | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Risk-free interest rate | 1.4 – 1.7% | 0.6% – 0.9% | 0.9% – 2.3% | |||||||||||
Expected dividend yield | — | — | — | |||||||||||
Expected option term | 5 years | 5 years | 5 – 6 years | |||||||||||
Volatility | 70.00% | 70.00% | 70.00% | |||||||||||
Summary of Option Activity | ' | |||||||||||||
A summary of option activity for the year ended December 31, 2013 is presented below: | ||||||||||||||
Number of | Weighted Average | Weighted Average Remaining | Aggregate | |||||||||||
Options | Exercise Price | Contractual Life (in years) | Intrinsic | |||||||||||
Value | ||||||||||||||
Outstanding at December 31, 2012 | 51,550 | $ | 73.38 | |||||||||||
Granted | 265,000 | 1.76 | ||||||||||||
Exercised | — | — | ||||||||||||
Forfeited | -5,945 | 19.89 | ||||||||||||
Expired | -459 | 81 | ||||||||||||
Outstanding at December 31, 2013 | 310,146 | 13.2 | 9.02 | $ | 306,925 | |||||||||
Vested or expected to vest at | 285,291 | 14.2 | 8.96 | 278,018 | ||||||||||
December 31, 2013 | ||||||||||||||
Exercisable at December 31, 2013 | 41,620 | 85.01 | 5.59 | — | ||||||||||
Summary of Restricted Stock Activity | ' | |||||||||||||
A summary of restricted stock activity for the year ended December 31, 2013 is presented below: | ||||||||||||||
Restricted Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Restricted shares at December 31, 2012 | 38,272 | $ | 5.25 | |||||||||||
Granted | 2,000 | 1.9 | ||||||||||||
Vested | -19,421 | -5.66 | ||||||||||||
Canceled | -3,375 | -4.2 | ||||||||||||
Restricted shares at December 31, 2013 | 17,476 | $ | 4.62 | |||||||||||
Reserved Authorized Shares of Common Stock for Future Issuance | ' | |||||||||||||
At December 31, 2013, the Company has reserved authorized shares of common stock for future issuance as follows: | ||||||||||||||
Warrants | 1,839,278 | |||||||||||||
Outstanding stock options | 310,146 | |||||||||||||
Possible future issuance under inducement plan | 400,000 | |||||||||||||
Possible future issuance under stock option plans | 97,440 | |||||||||||||
Possible future issuance under employee stock purchase plan | 22,338 | |||||||||||||
Total | 2,669,202 | |||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Purchased components | $ | 205,320 | $ | 187,567 | ||||
Finished goods | 357,716 | 646,959 | ||||||
$ | 563,036 | $ | 834,526 | |||||
Fixed_Assets_Tables
Fixed Assets (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Fixed Assets | ' | |||||||||
Fixed assets consist of the following: | ||||||||||
December 31, | ||||||||||
Estimated Useful Life (Years) | 2013 | 2012 | ||||||||
Computer and laboratory equipment | 3 | $ | 1,748,566 | $ | 2,689,519 | |||||
Furniture and equipment | 3 | 249,377 | 644,034 | |||||||
Production equipment | 7 | 997,297 | 997,297 | |||||||
Leasehold improvements | * | 185,255 | 179,997 | |||||||
3,180,495 | 4,510,847 | |||||||||
Less – accumulated depreciation | -2,951,182 | -4,216,950 | ||||||||
$ | 229,313 | $ | 293,897 | |||||||
* | Lesser of life of lease or estimated useful life. | |||||||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Expenses | ' | |||||||
Accrued expenses consist of the following for the years ended December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Technology fees | $ | 450,000 | $ | 450,000 | ||||
Professional services | 263,642 | 248,759 | ||||||
Clinical study obligations | 51,424 | 24,490 | ||||||
Sales taxes | 32,688 | 62,385 | ||||||
Supplier obligations | — | 105,132 | ||||||
Other | 72,442 | 58,077 | ||||||
$ | 870,196 | $ | 948,843 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Current Income Tax Expense Benefit Attributable to Continuing Operations | ' | ||||||||||
Current income tax expense (benefit) attributable to continuing operations consists of the following for the years ended December 31, 2013, 2012, and 2011. | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal | — | — | — | ||||||||
State | — | — | — | ||||||||
Total | — | — | — | ||||||||
Effective Income Tax Rate Differs from the Statutory Federal Income Tax Rate | ' | ||||||||||
The Company’s effective income tax rate differs from the statutory federal income tax rate as follows for the years ended December 31, 2013, 2012, and 2011. | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal tax provision (benefit) rate | -34 | % | -34 | % | -34 | % | |||||
State tax provision, net of federal provision | -4.8 | -3.5 | -3.4 | ||||||||
Permanent items | 3.4 | 0.8 | 1.9 | ||||||||
Federal research and development credits | -1.7 | — | -0.5 | ||||||||
Valuation allowance | 37.1 | 36.7 | 36 | ||||||||
Effective income tax rate | — | % | — | % | — | % | |||||
Deferred Tax Assets | ' | ||||||||||
The Company’s deferred tax assets consist of the following: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 32,253,602 | $ | 30,514,469 | |||||||
Research and development credit carryforwards | 1,735,265 | 1,547,374 | |||||||||
Accrued expenses | 493,075 | 643,952 | |||||||||
Stock-based compensation | 565,077 | 593,131 | |||||||||
Other | 1,061,212 | 1,048,541 | |||||||||
Total gross deferred tax assets | 36,108,231 | 34,347,467 | |||||||||
Valuation allowance | -36,108,231 | -34,347,467 | |||||||||
Net deferred tax assets | $ | — | $ | — | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Lease Payments Under Noncancelable Operating Leases | ' | ||||
Future minimum lease payments under noncancelable operating leases as of December 31, 2013 are as follows: | |||||
2014 | $ | 635,004 | |||
2015 | 158,751 | ||||
Total minimum lease payments | $ | 793,755 | |||
Future Minimum Lease Payments Under the Capital Lease | ' | ||||
Future minimum lease payments under the capital lease as of December 31, 2012 were as follows: | |||||
2013 | $ | 18,446 | |||
Total minimum lease payments | 18,446 | ||||
Less: Amount representing imputed interest | 517 | ||||
Present value of future minimum lease payments | $ | 17,929 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. | ||||||||||||||
Fair Value Measurements at December 31, 2013 Using | ||||||||||||||
December 31, | Quoted Prices in Active Markets | Significant | Significant Unobservable | |||||||||||
2013 | for Identical Assets | Other Observable | Inputs (Level 3) | |||||||||||
(Level 1) | Inputs | |||||||||||||
(Level 2) | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | 3,926,600 | $ | 3,926,600 | $ | — | $ | — | ||||||
Total | $ | 3,926,600 | $ | 3,926,600 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||||
Common stock warrants | $ | 1,938,603 | $ | — | $ | — | 1,938,603 | |||||||
Total | $ | 1,938,603 | $ | — | $ | — | $ | 1,938,603 | ||||||
Fair Value Measurements at December 31, 2012 Using | ||||||||||||||
December 31, | Quoted Prices in Active Markets | Significant | Significant Unobservable | |||||||||||
2012 | for Identical Assets | Other Observable | Inputs (Level 3) | |||||||||||
(Level 1) | Inputs | |||||||||||||
(Level 2) | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | 519,242 | $ | 519,242 | $ | — | $ | — | ||||||
Total | $ | 519,242 | $ | 519,242 | $ | — | $ | — | ||||||
Fair Value, Liabilities Measured on Recurring Basis | ' | |||||||||||||
The following table provides a summary of changes in the fair value of the Company's Level 3 financial liabilities for the year ended December 31, 2013: | ||||||||||||||
Balance at December 31, 2012 | $ | — | ||||||||||||
Initial fair value of warrants at issuance in June 2013 | 4,011,205 | |||||||||||||
Change in fair value of warrant liability | 289,657 | |||||||||||||
Reclassification of liability to additional paid-in capital upon exercise of warrants | -2,362,259 | |||||||||||||
Balance at December 31, 2013 | $ | 1,938,603 | ||||||||||||
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 04, 2013 | Mar. 31, 2012 | Feb. 13, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 04, 2013 | Jun. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Series A One Convertible Preferred Stock | Series A Two Convertible Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | ||||||||
Organization And Basis Of Presentation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, shares, other | 248,147 | 23,127 | ' | ' | ' | ' | ' | 1,066.25 | 3,370.51 | ' | 2,117,787 |
Share price | $2.10 | ' | ' | $2.92 | ' | ' | ' | $1,000 | $1,000 | ' | ' |
Exercise price of warrants or rights | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class Of Warrant Or Right Exercisable Period | '5 years | ' | '5 years | ' | ' | ' | ' | ' | '5 years | ' | ' |
Gross proceeds from issuance or sale of equity | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance or sale of equity | 4,500,000 | ' | 7,400,000 | 7,155,191 | 7,482,884 | 33,614 | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | 9,195,753 | 8,699,478 | 10,290,446 | 16,986,809 | ' | ' | ' | ' |
Shares of common stock issuable upon exercise of warrants | 2,365,934 | ' | ' | ' | ' | ' | ' | ' | ' | 1,308,611 | ' |
Convertible preferred stock, shares issued upon conversion | 477.327 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from stock options exercised | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of stock warrants exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,308,611 | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Liabilities for product warranty costs | $4,719 | $18,629 | ' |
Advertising and promotional costs | $151,000 | $242,000 | $426,000 |
Percentage of revenues from sales outside the United States | 16.00% | 7.00% | 6.00% |
Accounts Receivable | Customer One | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Concentration risk, percentage | 14.00% | ' | ' |
Accounts Receivable | Customer Two | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Concentration risk, percentage | 12.00% | ' | ' |
Antidilutive_Common_Stock_Equi
Anti-dilutive Common Stock Equivalents Excluded from Calculation of Diluted Net Income Per Common Share (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potentially dilutive common stock equivalents excluded from calculation of diluted net income per common share | 2,239,511 | 827,244 | 334,549 |
Options | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potentially dilutive common stock equivalents excluded from calculation of diluted net income per common share | 161,391 | 53,999 | 91,411 |
Warrants | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potentially dilutive common stock equivalents excluded from calculation of diluted net income per common share | 2,055,733 | 741,546 | 238,413 |
Unvested Restricted Stock | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potentially dilutive common stock equivalents excluded from calculation of diluted net income per common share | 22,387 | 31,699 | 4,725 |
Determination_of_net_loss_per_
Determination of net loss per common share (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Determination of net loss per common share [Line Items] | ' | ' | ' |
Net loss | ($8,019,137) | ($10,007,553) | ($9,981,105) |
Deemed dividend attributable to preferred stockholders in connection with beneficial conversion features | -766,872 | 0 | 0 |
Net loss applicable to common stockholders | ($8,786,009) | ($10,007,553) | ($9,981,105) |
Net loss per common share applicable to common stockholders, basic and diluted | ($3.07) | ($5.22) | ($15.53) |
Weighted average number of common shares outstanding, basic and diluted | 2,862,094 | 1,918,723 | 642,513 |
StockBased_Compensation_and_St2
Stock-Based Compensation and Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||
6-May-13 | Jun. 04, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Feb. 13, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2004 | Dec. 31, 2004 | Dec. 31, 2013 | Dec. 31, 2004 | Dec. 31, 2013 | Jun. 30, 2004 | 14-May-12 | 31-May-10 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 04, 2013 | Jun. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Non-employees | Non-employees | Non-employees | Minimum | Minimum | Maximum | 2004 Stock Plan | 2004 Stock Plan | 2009 Inducement Plan | 2004 Employee Stock Purchase Plan | 2010 Employee Stock Purchase Plan | 2010 Employee Stock Purchase Plan | 2010 Employee Stock Purchase Plan | 2010 Employee Stock Purchase Plan | Series A One Convertible Preferred Stock [Member] | Series A Two Convertible Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A One and Two Convertible Preferred Stock | ||||||||||
Stock Based Compensation And Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of the Company's common stock authorized for issuance | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Plan generally terminate after the grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock were authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 576,279 | ' | 400,000 | 10,417 | ' | 6,945 | ' | ' | ' | ' | ' | ' | ' |
Shares Issued in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,644 | ' | ' | ' | ' | ' | 16,094 | 8,895 | ' | ' | ' | ' | ' |
Shares subject to outstanding options | ' | ' | ' | ' | ' | 310,146 | 51,550 | ' | ' | ' | ' | ' | ' | ' | ' | 309,046 | ' | ' | ' | ' | ' | 22,338 | ' | ' | ' | ' | ' | ' |
Weighted average exercise price | ' | ' | ' | ' | ' | $13.20 | $73.38 | ' | ' | ' | ' | ' | ' | ' | ' | $12.37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares were available for future grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97,440 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Holders of more than total combined voting power of all classes of stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive stock options may not be granted at less than fair market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110.00% | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'All of the Company’s employees who had been employed by the Company for at least 60 days and whose customary employment is for more than 20 hours per week and for more than five months in any calendar year were eligible to participate and any employee who owned 5% or more of the voting power or value of the Company’s stock was not eligible to participate. | ' | 'equal to the lesser of (i) 6,945 shares, (ii) 1 percent of the shares of common stock outstanding on the last day of the immediately preceding fiscal year, or (iii) such lesser number of shares as is determined by the Board. At the Company’s Annual Meeting of Stockholders held on May 14, 2012, the stockholders of the Company approved the Company’s Amended and Restated 2010 Employee Stock Purchase Plan (the “Amended and Restated 2010 ESPP”), which, among other things, increased the number of shares of the Company’s common stock authorized for issuance thereunder by 16,667 shares. All of the Company’s full-time employees and certain part-time employees are eligible to participate in the Amended and Restated 2010 ESPP. For part-time employees to be eligible, they must have customary employment of more than five months in any calendar year and more than 20 hours per week. Employees who, after exercising their rights to purchase shares under the Amended and Restated 2010 ESPP, would own shares representing 5% or more of the voting power of the Company’s common stock, are ineligible to participate. | ' | ' | ' | ' | ' | ' | ' |
Participating employees can authorize to percentage of withholdup earnings during consecutive six-month payment periods for the purchase of the shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average per share grant-date fair values of options granted | ' | ' | ' | ' | ' | $1.02 | $2.67 | $11.34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options issued or exercised | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized stock-based compensation costs related to non-vested stock options | ' | ' | ' | ' | ' | $247,468 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized stock-based compensation costs related to non-vested stock options related to, number of shares | ' | ' | ' | ' | ' | 286,022 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized stock-based compensation costs related to non-vested stock options related to, per share weighted fair value | ' | ' | ' | ' | ' | $0.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized cost is expected to be recognized over a weighted average period of approximately | ' | ' | ' | ' | ' | '4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restricted stock have been granted to employee | ' | ' | ' | ' | ' | 2,000 | 37,167 | 3,630 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock withholding with company by employee, in lieu of paying withholding taxes on the vesting of restricted stock | ' | ' | ' | ' | ' | 4,214 | 721 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from option exercises and purchases | ' | ' | ' | ' | ' | 26,000 | 23,000 | 34,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | 246,000 | 319,000 | 837,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, shares, other | ' | 248,147 | ' | 23,127 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,066.25 | 3,370.51 | ' | 2,117,787 | 2,117,787 |
Share price | ' | $2.10 | ' | ' | ' | $2.92 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | $1,000 | ' | ' | ' |
Preferred stock, stated value | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | $1,000 | ' | ' | ' |
Class of warrant or right, Number of securities called by warrants or rights | ' | 2,365,934 | ' | ' | 781,955 | 2,365,934 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right, Exercise price of warrants or rights | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of stock warrants exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,308,611 | ' | ' |
Proceeds from Stock Options Exercised | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | 119,370 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued Bonuses | ' | ' | 285,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing Price Of Shares | ' | ' | ' | ' | ' | ' | ' | ' | $2.39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Offering Units | ' | ' | ' | ' | 1,421,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unit Issued During Period Price Per Unit New Issues | ' | ' | ' | ' | $6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise Price Of Warrants | ' | ' | ' | ' | 6.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period Shares Public Offering | ' | ' | ' | ' | 1,421,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance or Sale of Equity, Total | ' | $4,500,000 | ' | ' | $7,400,000 | $7,155,191 | $7,482,884 | $33,614 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued | ' | ' | ' | ' | ' | 5,945,581 | 2,140,871 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock authorized | ' | ' | ' | ' | ' | 50,000,000 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Outstanding | ' | ' | ' | ' | ' | 5,945,581 | 2,140,871 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Term Of Grant Of Common Stock | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock Shares Outstanding | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | ' | ' | ' | ' | 265,000 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of stock warrants exercise period | ' | 'five year warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per Unit Of Common Stock Description | ' | ' | ' | ' | 'one share of the Companys common stock and one warrant to purchase one half of a share of the Companys common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted_Average_GrantDate_Fai
Weighted Average Grant-Date Fair Value Used in the Calculation of Stock-Based Compensation Expense (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected option term | '5 years | '5 years | ' |
Volatility | 70.00% | 70.00% | 70.00% |
Maximum | ' | ' | ' |
Risk-free interest rate | 1.70% | 0.90% | 2.30% |
Expected option term | ' | ' | '6 years |
Minimum | ' | ' | ' |
Risk-free interest rate | 1.40% | 0.60% | 0.90% |
Expected option term | ' | ' | '5 years |
Summary_of_option_activity_Det
Summary of option activity (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Summary Of Option Activity [Line Items] | ' |
Number of Options Outstanding at December 31, 2012 | 51,550 |
Number of Options, Granted | 265,000 |
Number of Options, Exercised | 0 |
Number of Options, Forfeited | -5,945 |
Number of Options, Expired | -459 |
Number of Options Outstanding at December 31, 2013 | 310,146 |
Number of Options, Vested or expected to vest at December 31, 2013 | 285,291 |
Number of Options, Exercisable at December 31, 2013 | 41,620 |
Weighted Average Exercise Price Outstanding at December 31, 2012 | $73.38 |
Weighted Average Exercise Price, Granted | $1.76 |
Weighted Average Exercise Price, Exercised | $0 |
Weighted Average Exercise Price , Forfeited | $19.89 |
Weighted Average Exercise Price, Expired | $81 |
Weighted Average Exercise Price Outstanding at December 31, 2013 | $13.20 |
Weighted Average Exercise Price, Vested or expected to vest at December 31, 2013 | $14.20 |
Weighted Average Exercise Price, Exercisable at December 31, 2013 | $85.01 |
Weighted Average Remaining Contractual Life (in years), Outstanding at December 31, 2013 | '9 years 7 days |
Weighted Average Remaining Contractual Life (in years), Vested or expected to vest at December 31, 2013 | '8 years 11 months 16 days |
Weighted Average Remaining Contractual Life (in years), Exercisable at December 31, 2013 | '5 years 7 months 2 days |
Aggregate Intrinsic Value, Outstanding at December 31, 2013 | $306,925 |
Aggregate Intrinsic Value, Vested or expected to vest at December 31, 2013 | 278,018 |
Aggregate Intrinsic Value, Exercisable at December 31, 2013 | $0 |
Summary_of_restricted_stock_ac
Summary of restricted stock activity (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Summary Of Restricted Stock Activity [Line Items] | ' |
Restricted shares at December 31, 2012 | 38,272 |
Restricted Shares, Granted | 2,000 |
Restricted Shares, Vested | -19,421 |
Restricted Shares, Canceled | -3,375 |
Restricted shares at December 31, 2013 | 17,476 |
Weighted Average Grant Date Fair Value Restricted shares at December 31, 2012 | $5.25 |
Weighted Average Grant Date Fair Value Restricted Shares, Granted | $1.90 |
Weighted Average Grant Date Fair Value Restricted Shares, Vested | ($5.66) |
Weighted Average Grant Date Fair Value Restricted Shares, Canceled | ($4.20) |
Weighted Average Grant Date Fair Value Restricted shares at December 31, 2013 | $4.62 |
Company_has_reserved_authorize
Company has reserved authorized shares of common stock for future issuance (Detail) | Dec. 31, 2013 |
Future Issuance Of Common Stock [Line Items] | ' |
Common stock capital shares reserved for future issuance | 2,669,202 |
Outstanding stock options | ' |
Future Issuance Of Common Stock [Line Items] | ' |
Common stock capital shares reserved for future issuance | 310,146 |
Possible future issuance under inducement plan | ' |
Future Issuance Of Common Stock [Line Items] | ' |
Common stock capital shares reserved for future issuance | 400,000 |
Possible future issuance under stock option plans | ' |
Future Issuance Of Common Stock [Line Items] | ' |
Common stock capital shares reserved for future issuance | 97,440 |
Possible future issuance under employee stock purchase plan | ' |
Future Issuance Of Common Stock [Line Items] | ' |
Common stock capital shares reserved for future issuance | 22,338 |
Warrants | ' |
Future Issuance Of Common Stock [Line Items] | ' |
Common stock capital shares reserved for future issuance | 1,839,278 |
Intangible_Assets_Additional_i
Intangible Assets - Additional information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2009 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Acquired technological and intellectual property assets | $350,000 | ' | ' | ' | ' | ' |
Estimated life intangible Assets | '5 years | ' | ' | ' | ' | ' |
Amortization expense of technological, intellectual property | ' | ' | 17,500 | 0 | 0 | ' |
Intangible asset impairment | ' | $192,500 | ' | $0 | $0 | $192,500 |
Inventories_Detail
Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Line Items] | ' | ' |
Purchased components | $205,320 | $187,567 |
Finished goods | 357,716 | 646,959 |
Inventories | $563,036 | $834,526 |
Fixed_Assets_Detail
Fixed Assets (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Fixed Assets [Line Items] | ' | ' | |
Fixed assets, gross | $3,180,495 | $4,510,847 | |
Less - accumulated depreciation | -2,951,182 | -4,216,950 | |
Fixed assets, net | 229,313 | 293,897 | |
Computer and laboratory equipment | ' | ' | |
Fixed Assets [Line Items] | ' | ' | |
Fixed assets, estimated useful life | '3 years | ' | |
Fixed assets, gross | 1,748,566 | 2,689,519 | |
Furniture and equipment | ' | ' | |
Fixed Assets [Line Items] | ' | ' | |
Fixed assets, estimated useful life | '3 years | ' | |
Fixed assets, gross | 249,377 | 644,034 | |
Production equipment | ' | ' | |
Fixed Assets [Line Items] | ' | ' | |
Fixed assets, estimated useful life | '7 years | ' | |
Fixed assets, gross | 997,297 | 997,297 | |
Leasehold improvements | ' | ' | |
Fixed Assets [Line Items] | ' | ' | |
Fixed assets, estimated useful life | ' | [1] | ' |
Fixed assets, gross | $185,255 | $179,997 | |
[1] | Lesser of life of lease or estimated useful life. |
Fixed_Assets_Additional_Inform
Fixed Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Depreciation expense | $150,663 | $239,168 | $359,432 |
Accrued_Expenses_Detail
Accrued Expenses (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Technology fees | $450,000 | $450,000 |
Professional services | 263,642 | 248,759 |
Clinical study obligations | 51,424 | 24,490 |
Sales taxes | 32,688 | 62,385 |
Supplier obligations | 0 | 105,132 |
Other | 72,442 | 58,077 |
Accrued expenses | $870,196 | $948,843 |
Restructuring_Related_Activity1
Restructuring Related Activity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost number of positions eliminated | 25 | ' | ' |
Restructuring and related cost expected cost | $2.20 | ' | ' |
Restructuring charges | ' | ' | 2 |
Accrual for severance | ' | 0.2 | 0.2 |
Inventories were reduced by charges related to the business restructuring | ' | ' | $1.80 |
Current_income_tax_expense_ben
Current income tax expense benefit attributable to continuing operations (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Federal | $0 | $0 | $0 |
State | 0 | 0 | 0 |
Total | $0 | $0 | $0 |
Company_effective_income_tax_r
Company effective income tax rate differs from the statutory federal income tax rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Federal tax provision (benefit) rate | -34.00% | -34.00% | -34.00% |
State tax provision, net of federal provision | -4.80% | -3.50% | -3.40% |
Permanent items | 3.40% | 0.80% | 1.90% |
Federal research and development credits | -1.70% | 0.00% | -0.50% |
Valuation allowance | 37.10% | 36.70% | 36.00% |
Effective income tax rate | 0.00% | 0.00% | 0.00% |
Company_deferred_tax_assets_De
Company deferred tax assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $32,253,602 | $30,514,469 |
Research and development credit carryforwards | 1,735,265 | 1,547,374 |
Accrued expenses | 493,075 | 643,952 |
Stock-based compensation | 565,077 | 593,131 |
Other | 1,061,212 | 1,048,541 |
Total gross deferred tax assets | 36,108,231 | 34,347,467 |
Valuation allowance | -36,108,231 | -34,347,467 |
Net deferred tax assets | $0 | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Federal | State and local jurisdiction | Federal And State Research And Development Credits | |||
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' |
Operating loss carry forwards | ' | ' | $97,100,000 | $18,600,000 | ' |
Tax credit carry forward amount | ' | ' | 1,100,000 | 977,000 | ' |
Amount includes tax benefits | 3,900,000 | ' | ' | ' | ' |
Income tax expense benefit attributable to tax credit carry forwards | 71,000 | ' | ' | ' | ' |
Valuation allowance amount | $36,108,231 | $34,347,467 | ' | ' | ' |
Operating loss carryforwards, expiration dates | ' | ' | 'Begin to expire in 2019 | 'Begin to expire in 2014 | 'Begin to expire in 2018 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Oct. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' |
Lease expiration date | 31-Mar-15 | ' | ' | ' | ' |
Base rent, per month | ' | ' | $52,917 | ' | ' |
Operating Leases, Rent Expense | ' | ' | 635,004 | 709,164 | 764,754 |
Capital Lease Obligations Incurred | ' | 60,410 | ' | ' | ' |
Purchase Obligation, Total | ' | ' | $147,806 | ' | ' |
Future_minimum_lease_payments_
Future minimum lease payments under noncancelable operating leases (Detail) (USD $) | Dec. 31, 2013 |
Operating Leased Assets [Line Items] | ' |
2014 | $635,004 |
2015 | 158,751 |
Total minimum lease payments | $793,755 |
Future_minimum_lease_payments_1
Future minimum lease payments under the capital lease (Detail) (USD $) | Dec. 31, 2012 |
Capital Leased Assets [Line Items] | ' |
2013 | $18,446 |
Total minimum lease payments | 18,446 |
Less: Amount representing imputed interest | 517 |
Present value of future minimum lease payments | $17,929 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Feb. 13, 2012 | Dec. 31, 2013 | Jun. 04, 2013 |
Fair Value Disclosures [Line Items] | ' | ' | ' |
Share price | ' | $2.92 | $2.10 |
Exercise price | ' | $2 | ' |
Risk free interest rate | 0.85% | 1.71% | ' |
Expected term | '5 years | '5 years | ' |
Expected volatility | 73.50% | 67.60% | ' |
Common stock warrants liability | ' | $1,938,603 | ' |
Transfer of liability to additional paid-in capital upon exercise of warrants | ' | $2,362,259 | ' |
Class of class stock warrants or rights exercised | ' | 1.3 | ' |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ' | ' |
Cash equivalents | $3,926,600 | $519,242 |
Total | 3,926,600 | 519,242 |
Liabilities: | ' | ' |
Common stock warrants | 1,938,603 | ' |
Total | 1,938,603 | ' |
Fair Value, Inputs, Level 1 | ' | ' |
Assets: | ' | ' |
Total | 3,926,600 | 519,242 |
Liabilities: | ' | ' |
Total | 0 | ' |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ' | ' |
Assets: | ' | ' |
Cash equivalents | 3,926,600 | 519,242 |
Liabilities: | ' | ' |
Common stock warrants | 0 | ' |
Fair Value, Inputs, Level 2 | ' | ' |
Assets: | ' | ' |
Total | 0 | 0 |
Liabilities: | ' | ' |
Total | 0 | ' |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ' | ' |
Assets: | ' | ' |
Cash equivalents | 0 | 0 |
Liabilities: | ' | ' |
Common stock warrants | 0 | ' |
Fair Value, Inputs, Level 3 | ' | ' |
Assets: | ' | ' |
Total | 0 | 0 |
Liabilities: | ' | ' |
Total | 1,938,603 | ' |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ' | ' |
Assets: | ' | ' |
Cash equivalents | 0 | 0 |
Liabilities: | ' | ' |
Common stock warrants | $1,938,603 | ' |
Summary_of_changes_in_fair_val
Summary of changes in fair value of company's level 3 financial liabilities (Details) (Warrants, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Warrants | ' |
Summary of changes in the fair value [Line Items] | ' |
Balance at December 31, 2012 | $0 |
Initial fair value of warrants at issuance in June 2013 | 4,011,205 |
Change in fair value of warrant liability | 289,657 |
Reclassification of liability to additional paid-in capital upon exercise of warrants | -2,362,259 |
Balance at December 31, 2013 | $1,938,603 |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ' |
Revolving credit facility, maximum borrowing capacity | $2,500,000 |
Credit Facility expiration date | 15-Jan-15 |
Credit Facility limit restricted to support letter of credit | 225,000 |
Line of credit facility, remaining borrowing capacity | 2,275,000 |
Line of Credit Facility, Maximum Borrowing Capacity in case of Not Compliance with Agreement | 750,000 |
Prime Rate | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate over prime rate | 0.50% |
31-Dec-14 | ' |
Line of Credit Facility [Line Items] | ' |
Line of credit facility, remaining borrowing capacity | $2,500,000 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
Jun. 04, 2013 | Mar. 31, 2012 | Feb. 13, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 01, 2011 | Feb. 15, 2013 | Jul. 26, 2013 | Jun. 03, 2009 | Jun. 04, 2013 | Jun. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | |
First Stock Split | Second Stock Split | 2009 Stock Plan | 2009 Stock Plan | Series A One Convertible Preferred Stock | Series A Two Convertible Preferred Stock | Series A One and Two Convertible Preferred Stock | Warrants | Placement Agent | Public Offering | Minimum | |||||||
Public Offering | |||||||||||||||||
Public Offering Of Common Stock and Warrants [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public offering of units | ' | ' | 1,421,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public offering of units, price per unit | ' | ' | $6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public offering of units, description | ' | ' | 'Each Unit consists of one share of the Companys common stock and one warrant to purchase one half of a share of the Companys common stock. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued in public offering | ' | ' | 1,421,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issuable upon exercise of warrants | 2,365,934 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 71,087 | 710,868 | ' |
Net proceed from offering common stock and warrants | $4,500,000 | ' | $7,400,000 | $7,155,191 | $7,482,884 | $33,614 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period over which warrants become exercisable | '5 years | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '180 days |
Warrant exercise price | ' | ' | 6.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.5 | 6.9 | ' |
Warrant exercise price Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125.00% | 115.00% | ' |
Common stock warrants issued to placement agent as a percentage of total units sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' |
Fair Value of Warrants | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' |
Exercise price | ' | ' | ' | $2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2 | ' | ' | ' |
Expected volatility | ' | ' | 73.50% | 67.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73.60% | ' | ' | ' |
Risk free interest rate | ' | ' | 0.85% | 1.71% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.05% | ' | ' | ' |
Expected life | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Stock issued during period, shares, other | 248,147 | 23,127 | ' | ' | ' | ' | ' | ' | ' | ' | 1,066.25 | 3,370.51 | 2,117,787 | ' | ' | ' | ' |
Share price | $2.10 | ' | ' | $2.92 | ' | ' | ' | ' | ' | ' | $1,000 | $1,000 | ' | $2.60 | ' | ' | ' |
Preferred stock, stated value | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | $1,000 | $1,000 | ' | ' | ' | ' | ' |
Gross proceeds from issuance or sale of equity | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, Discount on shares | ' | ' | ' | 766,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right, Number of securities called by warrants or rights | 2,365,934 | ' | 781,955 | 2,365,934 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right, Exercise price of warrants or rights | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, issued | ' | ' | ' | 5,945,581 | 2,140,871 | ' | ' | ' | 386,111 | 13,889 | ' | ' | ' | ' | ' | ' | ' |
Stockholders equity note reverse stock split conversion ratio | ' | ' | ' | ' | ' | ' | '1-for-6 | '1-for-6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-Operating Expense | ' | ' | ' | 290,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, Convertible, Conversion price | ' | ' | ' | $2.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of class stock warrants or rights exercised | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,308,611 | ' | ' | ' |
Proceeds from stock options exercised | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock warrants liability | ' | ' | ' | $1,938,603 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse_Stock_Split_Additional
Reverse Stock Split - Additional Information (Detail) | 1 Months Ended | 0 Months Ended | ||
Sep. 01, 2011 | Dec. 31, 2013 | Feb. 15, 2013 | Dec. 31, 2013 | |
First Stock Split | First Stock Split | Second Stock Split | Second Stock Split | |
Stockholders equity note reverse stock split conversion ratio | '1-for-6 | ' | '1-for-6 | ' |
Common stock outstanding, immediately prior to reverse stock split | 23,331,646 | ' | 12,845,228 | ' |
Common stock outstanding, as a result of reverse stock split | ' | 3,888,607 | ' | 2,140,871 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Allowance for Doubtful Accounts | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | $130,000 | $286,612 | $379,100 | |||
Charged to costs and expenses | 111,296 | -12,999 | 30,825 | |||
Charged to other accounts | 0 | 0 | 0 | |||
Recoveries/ (Deductions) | -206,296 | -143,613 | [1] | -123,313 | [1] | |
Balance at End of Period | 35,000 | 130,000 | 286,612 | |||
Sales Returns Reserve | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | 21,616 | 13,302 | 26,865 | |||
Charged to costs and expenses | 0 | 0 | 0 | |||
Charged to other accounts | 38,278 | 180,066 | 272,607 | |||
Recoveries/ (Deductions) | -58,999 | -171,752 | [1] | -286,170 | [1] | |
Balance at End of Period | 895 | 21,616 | 13,302 | |||
Deferred Tax Asset Valuation Allowance | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | 34,347,467 | 30,487,085 | 28,670,035 | |||
Charged to costs and expenses | 2,976,809 | 3,900,388 | 3,803,223 | |||
Charged to other accounts | 0 | 0 | 0 | |||
Recoveries/ (Deductions) | -1,216,045 | [2] | -40,006 | [2] | -1,986,173 | [2] |
Balance at End of Period | $36,108,231 | $34,347,467 | $30,487,085 | |||
[1] | Net write-offs. | |||||
[2] | Expiration of Federal and State Net Operating Loss Carryforwards and other reductions. |