Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 22, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | NeuroMetrix, Inc. | |
Entity Central Index Key | 1289850 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | NURO | |
Entity Common Stock, Shares Outstanding | 8,519,151 |
Balance_Sheets
Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $6,403,123 | $9,221,985 |
Accounts receivable, net | 921,595 | 580,240 |
Inventories | 635,163 | 679,740 |
Prepaid expenses and other current assets | 262,937 | 608,160 |
Total current assets | 8,222,818 | 11,090,125 |
Fixed assets, net | 539,718 | 311,520 |
Other long-term assets | 368,366 | 585 |
Total assets | 9,130,902 | 11,402,230 |
Current liabilities: | ||
Accounts payable | 916,519 | 522,871 |
Accrued compensation | 779,877 | 885,353 |
Accrued expenses | 1,286,184 | 1,264,876 |
Current portion of deferred revenue | 336,353 | 25,048 |
Total current liabilities | 3,318,933 | 2,698,148 |
Deferred revenue, net of current portion | 9,296 | 9,635 |
Common stock warrants | 4,121,030 | 5,307,332 |
Total liabilities | 7,449,259 | 8,015,115 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock value | 0 | 0 |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 8,519,151 and 8,152,746 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 852 | 815 |
Additional paid-in capital | 158,130,318 | 157,764,598 |
Accumulated deficit | -156,449,530 | -154,378,302 |
Total stockholders’ equity | 1,681,643 | 3,387,115 |
Total liabilities and stockholders’ equity | 9,130,902 | 11,402,230 |
Convertible Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock value | $3 | $4 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 8,519,151 | 8,152,746 |
Common stock, shares outstanding | 8,519,151 | 8,152,746 |
Convertible Preferred Stock | ||
Preferred stock, shares authorized | 11,083 | 4,438 |
Preferred stock, issued | 3,206,357 | 3,614,357 |
Preferred stock, outstanding | 3,206,357 | 3,614,357 |
Statements_of_Operations
Statements of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues | $1,282,960 | $1,331,537 |
Cost of revenues | 637,261 | 615,081 |
Gross profit | 645,699 | 716,456 |
Operating expenses: | ||
Research and development | 902,542 | 863,718 |
Sales and marketing | 1,455,686 | 446,216 |
General and administrative | 1,546,090 | 1,146,757 |
Total operating expenses | 3,904,318 | 2,456,691 |
Loss from operations | -3,258,619 | -1,740,235 |
Interest income | 1,089 | 1,036 |
Change in fair value of warrant liability | 1,186,302 | 514,600 |
Net loss | ($2,071,228) | ($1,224,599) |
Net loss per common share, basic and diluted | ($0.25) | ($0.21) |
Weighted average number of common shares outstanding, basic and diluted | 8,274,084 | 5,931,134 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | ($2,071,228) | ($1,224,599) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 29,144 | 34,965 |
Stock-based compensation | 83,999 | 76,484 |
Change in fair value of warrant liability | -1,186,302 | -514,600 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -341,355 | -139,744 |
Inventories | 44,577 | -102,659 |
Prepaid expenses and other current assets | 344,874 | 60,186 |
Accounts payable | 311,487 | 135,090 |
Accrued expenses and compensation | 197,589 | 72,133 |
Deferred revenue, deferred costs, and other | -56,466 | -5,356 |
Net cash used in operating activities | -2,643,681 | -1,608,100 |
Cash flows from investing activities: | ||
Purchases of fixed assets | -175,181 | -4,115 |
Net cash used in investing activities | -175,181 | -4,115 |
Net decrease in cash and cash equivalents | -2,818,862 | -1,612,215 |
Cash and cash equivalents, beginning of period | 9,221,985 | 9,195,753 |
Cash and cash equivalents, end of period | 6,403,123 | 7,583,538 |
Supplemental disclosure of cash flow information: | ||
Common stock issued to settle employee incentive compensation obligation | 281,757 | 104,405 |
Purchases of fixed assets in accounts payable | $82,161 | $0 |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 3 Months Ended | ||
Mar. 31, 2015 | |||
Accounting Policies [Abstract] | |||
Business and Basis of Presentation | 1 | Business and Basis of Presentation | |
Our Business-An Overview | |||
NeuroMetrix, Inc., or the Company, a Delaware corporation, was founded in June 1996. The Company develops wearable medical technology and point-of-care tests that help patients and physicians better manage chronic pain, nerve diseases, and sleep disorders. The Company markets the SENSUSTM Pain Management System, or SENSUS, which is a wearable therapeutic device designed for relief of chronic, intractable pain. The Company also markets DPNCheck®, which is a quantitative nerve conduction test that is used by physicians and health care professionals to evaluate systemic neuropathies such as diabetic peripheral neuropathy, or DPN. 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. The Company is developing a new over-the-counter wearable therapeutic device branded Quell which builds upon the core SENSUS neuro-stimulation technology. Quell was unveiled at the January 2015 Consumer Electronics Show (CES) and is targeted for commercial launch in the United States during the second quarter of 2015. | |||
The accompanying financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company has suffered recurring losses from operations and negative cash flows from operating activities. The Company held cash and cash equivalents of $6.4 million as of March 31, 2015. 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 third 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 fourth quarter of 2015 and beyond. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. 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. | |||
Unaudited Interim Financial Statements | |||
The accompanying unaudited balance sheet as of March 31, 2015, unaudited statements of operations for the quarters ended March 31, 2015 and 2014 and the unaudited statements of cash flows for the quarters ended March 31, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The accompanying balance sheet as of December 31, 2014 has been derived from audited financial statements prepared at that date, but does not include all disclosures required by US GAAP. In the opinion of management, the financial statements include all normal and recurring adjustments considered necessary for a fair statement of the Company’s financial position and operating results. Operating results for the quarter ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or the SEC, on February 25, 2015 (File No. 001-33351), or the Company’s 2014 Form 10-K. | |||
Revenues | |||
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 DPNCheck devices and, when available, Quell 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. | |||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. 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. | |||
During the first quarter of 2015, one customer accounted for 21 % of total revenue and 22% of gross accounts receivables. | |||
In comparison, in the first quarter of 2014, one customer accounted for 12% of total revenue and 16% of gross accounts receivables. | |||
Use of Estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. | |||
Recent Accounting Pronouncements | |||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the provisions of ASU 2014-15 and assessing the impact, if any, it may have on our financial position, results of operations or cash flows. | |||
In May 2014, the FASB and the International Accounting Standards Board ("IASB") jointly issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance. The objective of ASU 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has issued a proposal to defer the effective date to January 1, 2018. An entity can elect to adopt ASU 2014-09 using one of two methods, either full retrospective adoption to each prior reporting period, or recognizing the cumulative effect of adoption at the date of initial application. The Company is in the process of evaluating the new standard and does not know the effect, if any, ASU 2014-09 will have on the Consolidated Financial Statements or which adoption method will be used. | |||
Comprehensive_Loss
Comprehensive Loss | 3 Months Ended | |
Mar. 31, 2015 | ||
Stockholders' Equity Note [Abstract] | ||
Comprehensive Loss | 2 | Comprehensive Loss |
For the quarters ended March 31, 2015 and 2014, the Company had no components of other comprehensive income or loss other than net loss itself. | ||
Net_Loss_Per_Common_Share
Net Loss Per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Loss Per Common Share | 3 | Net Loss Per Common Share | ||||||
Basic net loss per common share is computed by dividing net loss 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, and restricted 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 income per common share because their effect was anti-dilutive for each of the periods presented: | ||||||||
Quarters Ended March 31, | ||||||||
2015 | 2014 | |||||||
Options | 809,257 | 314,443 | ||||||
Warrants | 5,760,847 | 1,839,278 | ||||||
Unvested restricted stock | 832 | 14,447 | ||||||
Convertible preferred stock | 1,571,744 | — | ||||||
Total | 8,142,680 | 2,168,168 | ||||||
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | 4 | Inventories | ||||||
Inventories consist of the following: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Purchased components | $ | 307,553 | $ | 209,426 | ||||
Finished goods | 327,610 | 470,314 | ||||||
$ | 635,163 | $ | 679,740 | |||||
Accrued_Compensation_and_Expen
Accrued Compensation and Expenses | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Compensation and Expenses | 5 | Accrued Compensation and Expenses | ||||||
The following table provides a rollforward of the liability balance for severance obligations which was recorded as research and development and sales and marketing expense in the Company’s Statement of Operations for the year ended December 31, 2014. The balance as of March 31, 2015 which is included as a component of accrued compensation on the balance sheet will be paid by June 30, 2015. | ||||||||
March 31, | ||||||||
2015 | ||||||||
Balance - beginning | $ | 148,921 | ||||||
Accrual for severance | — | |||||||
Severance payments made | -77,457 | |||||||
Balance - ending | $ | 71,464 | ||||||
Accrued expenses consist of the following: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Technology fees | $ | 450,000 | $ | 450,000 | ||||
Professional services | 286,601 | 257,024 | ||||||
Consulting fees | 35,550 | 173,759 | ||||||
Clinical study obligations | 64,000 | 74,000 | ||||||
Sales taxes | 44,774 | 34,206 | ||||||
Personnel related obligations | 35,692 | 37,761 | ||||||
Federal excise tax | 26,997 | 25,989 | ||||||
Other | 342,570 | 212,137 | ||||||
$ | 1,286,184 | $ | 1,264,876 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2015 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 6 | Commitments and Contingencies |
Operating Lease | ||
In August 2014, the Company entered into a 5-year operating lease agreement with one 5-year extension option for manufacturing and order fulfillment facilities in Woburn, Massachusetts (the “Woburn Lease”). The Woburn Lease commenced December 15, 2014 and has a monthly base rent of $7,350. In September 2014, the Company entered into a 7-year operating lease agreement with one 5-year extension option for its corporate office and product development activities in Waltham, Massachusetts (the “Waltham Lease”). The term of the Waltham Lease commenced on February 20, 2015 and includes fixed payment obligations that escalate over the initial lease term. Average monthly base rent under the 7-year lease is approximately $37,792. These payment obligations were accrued and recognized over the term of occupancy. Under the Waltham Lease, the landlord was responsible for making certain improvements to the leased space at an agreed upon cost to the landlord. Total costs for the landlord improvements exceeded the agreed upon cost by $275,000. The landlord billed that excess cost to the Company as additional rent which has been included in other long term assets at March 31, 2015. This additional rent has been included in the net calculation of lease payments, so that rent expense is recognized on a straight-line basis over the term of occupancy. | ||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||
Fair Value Measurements | 7 | 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 March 31, 2015 Using | |||||||||||||||||||
March 31,2015 | Quoted Prices in Active Markets for | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
Identical Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Assets: | |||||||||||||||||||
Cash equivalents | $ | 1,469,330 | $ | 1,469,330 | $ | — | $ | — | |||||||||||
Total | $ | 1,469,330 | $ | 1,469,330 | $ | — | — | ||||||||||||
Liabilities: | |||||||||||||||||||
Common stock warrants | $ | 4,121,030 | $ | — | $ | — | $ | 4,121,030 | |||||||||||
Total | $ | 4,121,030 | $ | — | $ | — | $ | 4,121,030 | |||||||||||
Due to the lack of market quotes relating to our common stock warrants, the fair value of the common stock warrants was determined at March 31, 2015 using the Black-Scholes model, which is based on Level 3 inputs. As of March 31, 2015, inputs used in the Black-Scholes model are presented below. The assumptions used may change as the underlying sources of these assumptions and market conditions change. Based on the Black-Scholes model, the Company recorded a common stock warrants liability of $4.1 million at March 31, 2015. | |||||||||||||||||||
Black-Scholes Inputs to Warrant Liability Valuation at March 31, 2015 | |||||||||||||||||||
Warrants: | Stock Price | Exercise Price | Expected Volatility | Risk-Free Interest | Expected Term | Dividends | |||||||||||||
2014 Offering | $ | 1.68 | $ | 2.04 | 71.57 | % | 1.19 | % | 4yr 3mo | none | |||||||||
2013 Offering | $ | 1.68 | $ | 2 | 72.66 | % | 0.95 | % | 3yr 2mo | none | |||||||||
The following table provides a summary of changes in the fair value of the Company’s Level 3 financial liabilities between between December 31, 2014 and March 31, 2015 | |||||||||||||||||||
2014 Offering | 2013 Offering | Total | |||||||||||||||||
Balance at December 31, 2014 | $ | 4,233,729 | $ | 1,073,603 | $ | 5,307,332 | |||||||||||||
Change in fair value of warrant liability | -904,317 | -281,985 | -1,186,302 | ||||||||||||||||
Balance at March 31, 2015 | $ | 3,329,412 | $ | 791,618 | $ | 4,121,030 | |||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||
December 31, | Quoted Prices in Active Markets for | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
2014 | Identical Assets (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Assets: | |||||||||||||||||||
Cash equivalents | $ | 4,107,478 | $ | 4,107,478 | $ | — | $ | — | |||||||||||
Total | $ | 4,107,478 | $ | 4,107,478 | $ | — | $ | — | |||||||||||
Liabilities: | |||||||||||||||||||
Common stock warrants | $ | 5,307,332 | $ | — | $ | — | $ | 5,307,332 | |||||||||||
Total | $ | 5,307,332 | $ | — | $ | — | $ | 5,307,332 | |||||||||||
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, 2014 using the Black-Scholes model, which is based on Level 3 inputs. As of December 31, 2014, inputs used in the Black-Scholes model are presented below. The assumptions used may change as the underlying sources of these assumptions and market conditions change. Based on the Black-Scholes model, the Company recorded a common stock warrants liability of $5.3 million at December 31, 2014. | |||||||||||||||||||
Black-Scholes Inputs to Warrant Liability Valuation at December 31, 2014 | |||||||||||||||||||
Warrants: | Stock Price | Exercise Price | Expected Volatility | Risk-Free Interest | Expected Term | Dividends | |||||||||||||
2014 Offering | $ | 1.95 | $ | 2.04 | 71.11 | % | 1.51 | % | 4yr 6mo | none | |||||||||
2013 Offering | $ | 1.95 | $ | 2 | 75.71 | % | 1.24 | % | 3yr 5mo | none | |||||||||
Credit_Facility
Credit Facility | 3 Months Ended | |
Mar. 31, 2015 | ||
Debt Disclosure [Abstract] | ||
Credit Facility | 8 | Credit Facility |
The Company is party to a Loan and Security Agreement, or the Credit Facility, with a bank. As of March 31, 2015 the Credit Facility permitted the Company to borrow up to $2.5 million on a revolving basis. The Credit Facility was amended on January 23, 2015 and expires on January 15, 2016. 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 March 31, 2015, the Company was in compliance with these covenants and had not borrowed any funds under the Credit Facility. However, $451,731 of the amount available under the Credit Facility is restricted to support letters of credit issued in favor of the Company’s landlords for its premises leased in September 2014 for its corporate offices and its prior premises. Consequently, the amount available for borrowing under the Credit Facility as of March 31, 2015 was $2.0 million. | ||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |
Mar. 31, 2015 | ||
Stockholders' Equity Note [Abstract] | ||
Stockholders' Equity | 9 | Stockholders’ Equity |
In February 2015, 408 shares of Series A-4 Preferred Stock was converted by the holder into 200,000 shares of Common Stock. The Series A-4 Preferred Stock outstanding as of March 31, 2015 is convertible into an aggregate of 1,571,744 shares of common stock. | ||
In March 2015, the Company issued an aggregate of 166,405 shares of fully vested common stock with a value of $281,700 in partial settlement of 2014 management incentive compensation. The shares issued reflected the $1.69 closing price of the Company’s common stock as reported on the NASDAQ Capital Market on March 12, 2015. The 2014 issuance to settle the 2013 management incentive compensation totaled 42,615 shares with a value of $104,405 reflecting the $2.45 NASDAQ Capital Market closing price on February 25, 2014. | ||
Total compensation cost related to nonvested awards not yet recognized at March 31, 2015 was $442,000. The total compensation costs is expected to be recognized over a weighted-average period of 2.8 years. | ||
Business_and_Basis_of_Presenta1
Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Our Business-An Overview | Our Business-An Overview |
NeuroMetrix, Inc., or the Company, a Delaware corporation, was founded in June 1996. The Company develops wearable medical technology and point-of-care tests that help patients and physicians better manage chronic pain, nerve diseases, and sleep disorders. The Company markets the SENSUSTM Pain Management System, or SENSUS, which is a wearable therapeutic device designed for relief of chronic, intractable pain. The Company also markets DPNCheck®, which is a quantitative nerve conduction test that is used by physicians and health care professionals to evaluate systemic neuropathies such as diabetic peripheral neuropathy, or DPN. 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. The Company is developing a new over-the-counter wearable therapeutic device branded Quell which builds upon the core SENSUS neuro-stimulation technology. Quell was unveiled at the January 2015 Consumer Electronics Show (CES) and is targeted for commercial launch in the United States during the second quarter of 2015. | |
The accompanying financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company has suffered recurring losses from operations and negative cash flows from operating activities. The Company held cash and cash equivalents of $6.4 million as of March 31, 2015. 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 third 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 fourth quarter of 2015 and beyond. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. 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. | |
Unaudited Interim Financial Statements | Unaudited Interim Financial Statements |
The accompanying unaudited balance sheet as of March 31, 2015, unaudited statements of operations for the quarters ended March 31, 2015 and 2014 and the unaudited statements of cash flows for the quarters ended March 31, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The accompanying balance sheet as of December 31, 2014 has been derived from audited financial statements prepared at that date, but does not include all disclosures required by US GAAP. In the opinion of management, the financial statements include all normal and recurring adjustments considered necessary for a fair statement of the Company’s financial position and operating results. Operating results for the quarter ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or the SEC, on February 25, 2015 (File No. 001-33351), or the Company’s 2014 Form 10-K. | |
Revenues | Revenues |
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 DPNCheck devices and, when available, Quell 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. | |
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. 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. | |
During the first quarter of 2015, one customer accounted for 21 % of total revenue and 22% of gross accounts receivables. | |
In comparison, in the first quarter of 2014, one customer accounted for 12% of total revenue and 16% of gross accounts receivables. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the provisions of ASU 2014-15 and assessing the impact, if any, it may have on our financial position, results of operations or cash flows. | |
In May 2014, the FASB and the International Accounting Standards Board ("IASB") jointly issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance. The objective of ASU 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has issued a proposal to defer the effective date to January 1, 2018. An entity can elect to adopt ASU 2014-09 using one of two methods, either full retrospective adoption to each prior reporting period, or recognizing the cumulative effect of adoption at the date of initial application. The Company is in the process of evaluating the new standard and does not know the effect, if any, ASU 2014-09 will have on the Consolidated Financial Statements or which adoption method will be used. | |
Net_Loss_Per_Common_Share_Tabl
Net Loss Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Potentially Calculation of Diluted Net Income Per Common | the following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net income per common share because their effect was anti-dilutive for each of the periods presented: | |||||||
Quarters Ended March 31, | ||||||||
2015 | 2014 | |||||||
Options | 809,257 | 314,443 | ||||||
Warrants | 5,760,847 | 1,839,278 | ||||||
Unvested restricted stock | 832 | 14,447 | ||||||
Convertible preferred stock | 1,571,744 | — | ||||||
Total | 8,142,680 | 2,168,168 | ||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories consist of the following: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Purchased components | $ | 307,553 | $ | 209,426 | ||||
Finished goods | 327,610 | 470,314 | ||||||
$ | 635,163 | $ | 679,740 | |||||
Accrued_Compensation_and_Expen1
Accrued Compensation and Expenses (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Liabilities Restructuring Actions | The following table provides a rollforward of the liability balance for severance obligations which was recorded as research and development and sales and marketing expense in the Company’s Statement of Operations for the year ended December 31, 2014. The balance as of March 31, 2015 which is included as a component of accrued compensation on the balance sheet will be paid by June 30, 2015. | |||||||
March 31, | ||||||||
2015 | ||||||||
Balance - beginning | $ | 148,921 | ||||||
Accrual for severance | — | |||||||
Severance payments made | -77,457 | |||||||
Balance - ending | $ | 71,464 | ||||||
Accrued Compensation and Expenses | Accrued expenses consist of the following: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Technology fees | $ | 450,000 | $ | 450,000 | ||||
Professional services | 286,601 | 257,024 | ||||||
Consulting fees | 35,550 | 173,759 | ||||||
Clinical study obligations | 64,000 | 74,000 | ||||||
Sales taxes | 44,774 | 34,206 | ||||||
Personnel related obligations | 35,692 | 37,761 | ||||||
Federal excise tax | 26,997 | 25,989 | ||||||
Other | 342,570 | 212,137 | ||||||
$ | 1,286,184 | $ | 1,264,876 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
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 March 31, 2015 Using | |||||||||||||||||||
March 31,2015 | Quoted Prices in Active Markets for | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
Identical Assets (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Assets: | |||||||||||||||||||
Cash equivalents | $ | 1,469,330 | $ | 1,469,330 | $ | — | $ | — | |||||||||||
Total | $ | 1,469,330 | $ | 1,469,330 | $ | — | — | ||||||||||||
Liabilities: | |||||||||||||||||||
Common stock warrants | $ | 4,121,030 | $ | — | $ | — | $ | 4,121,030 | |||||||||||
Total | $ | 4,121,030 | $ | — | $ | — | $ | 4,121,030 | |||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||
December 31, | Quoted Prices in Active Markets for | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
2014 | Identical Assets (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Assets: | |||||||||||||||||||
Cash equivalents | $ | 4,107,478 | $ | 4,107,478 | $ | — | $ | — | |||||||||||
Total | $ | 4,107,478 | $ | 4,107,478 | $ | — | $ | — | |||||||||||
Liabilities: | |||||||||||||||||||
Common stock warrants | $ | 5,307,332 | $ | — | $ | — | $ | 5,307,332 | |||||||||||
Total | $ | 5,307,332 | $ | — | $ | — | $ | 5,307,332 | |||||||||||
Black-Scholes Inputs to Warrant Liability Valuation | Based on the Black-Scholes model, the Company recorded a common stock warrants liability of $4.1 million at March 31, 2015. | ||||||||||||||||||
Black-Scholes Inputs to Warrant Liability Valuation at March 31, 2015 | |||||||||||||||||||
Warrants: | Stock Price | Exercise Price | Expected Volatility | Risk-Free Interest | Expected Term | Dividends | |||||||||||||
2014 Offering | $ | 1.68 | $ | 2.04 | 71.57 | % | 1.19 | % | 4yr 3mo | none | |||||||||
2013 Offering | $ | 1.68 | $ | 2 | 72.66 | % | 0.95 | % | 3yr 2mo | none | |||||||||
Based on the Black-Scholes model, the Company recorded a common stock warrants liability of $5.3 million at December 31, 2014. | |||||||||||||||||||
Black-Scholes Inputs to Warrant Liability Valuation at December 31, 2014 | |||||||||||||||||||
Warrants: | Stock Price | Exercise Price | Expected Volatility | Risk-Free Interest | Expected Term | Dividends | |||||||||||||
2014 Offering | $ | 1.95 | $ | 2.04 | 71.11 | % | 1.51 | % | 4yr 6mo | none | |||||||||
2013 Offering | $ | 1.95 | $ | 2 | 75.71 | % | 1.24 | % | 3yr 5mo | none | |||||||||
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 between between December 31, 2014 and March 31, 2015 | ||||||||||||||||||
2014 Offering | 2013 Offering | Total | |||||||||||||||||
Balance at December 31, 2014 | $ | 4,233,729 | $ | 1,073,603 | $ | 5,307,332 | |||||||||||||
Change in fair value of warrant liability | -904,317 | -281,985 | -1,186,302 | ||||||||||||||||
Balance at March 31, 2015 | $ | 3,329,412 | $ | 791,618 | $ | 4,121,030 | |||||||||||||
Business_and_Basis_of_Presenta2
Business and Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization And Basis Of Presentation [Line Items] | ||||
Cash and cash equivalents | $6,403,123 | 7,583,538 | $9,221,985 | $9,195,753 |
Entity Date Of Incorporation | 1996-06 | |||
Customer One | Accounts Receivable | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Concentration risk, percentage | 22.00% | 16.00% | ||
Customer One | Sales Revenue, Net | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Concentration risk, percentage | 21.00% | 12.00% |
Comprehensive_Loss_Additional_
Comprehensive Loss - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss), net of tax | $0 | $0 |
Antidilutive_Common_Stock_Equi
Anti-dilutive Common Stock Equivalents Excluded from Calculation of Diluted Net Income Per Common Share (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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 | 8,142,680 | 2,168,168 |
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 | 809,257 | 314,443 |
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 | 5,760,847 | 1,839,278 |
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 | 832 | 14,447 |
Convertible Preferred 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 | 1,571,744 | 0 |
Inventories_Detail
Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Line Items] | ||
Purchased components | $307,553 | $209,426 |
Finished goods | 327,610 | 470,314 |
Inventories | $635,163 | $679,740 |
Rollforward_of_the_Liability_B
Rollforward of the Liability Balance for Severance (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | $148,921 |
Accrual for severance | 0 |
Severance payments made | -77,457 |
Ending Balance | $71,464 |
Accrued_Expenses_Detail
Accrued Expenses (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Accrued Liabilities [Line Items] | ||
Technology fees | $450,000 | $450,000 |
Professional services | 286,601 | 257,024 |
Consulting fees | 35,550 | 173,759 |
Clinical study obligations | 64,000 | 74,000 |
Sales taxes | 44,774 | 34,206 |
Personnel related obligations | 35,692 | 37,761 |
Federal excise tax | 26,997 | 25,989 |
Other | 342,570 | 212,137 |
Accrued expenses | $1,286,184 | $1,264,876 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Aug. 31, 2014 | Sep. 30, 2014 | |
Other Long Term Assets | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Operating Leases, Rent Expense | $275,000 | ||
5-year operating lease agreement | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Base rent, per month | 7,350 | ||
7-year operating lease agreement | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Base rent, per month | $37,792 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Line Items] | ||
Common stock warrants liability | $4,121,030 | $5,307,332 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash equivalents | $1,469,330 | $4,107,478 |
Total | 1,469,330 | 4,107,478 |
Liabilities: | ||
Common stock warrants | 4,121,030 | 5,307,332 |
Total | 4,121,030 | 5,307,332 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Total | 1,469,330 | 4,107,478 |
Liabilities: | ||
Total | 0 | 0 |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 1,469,330 | 4,107,478 |
Liabilities: | ||
Common stock warrants | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Total | 0 | 0 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Liabilities: | ||
Common stock warrants | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Total | 4,121,030 | 5,307,332 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Liabilities: | ||
Common stock warrants | $4,121,030 | $5,307,332 |
BlackScholes_Inputs_to_Warrant
Black-Scholes Inputs to Warrant Liability Valuation (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
2014 Offering | ||
Stock Price | $1.68 | $1.95 |
Exercise price | $2.04 | $2.04 |
Expected volatility | 71.57% | 71.11% |
Risk free interest rate | 1.19% | 1.51% |
Expected Term | 4 years 3 months | 4 years 6 months |
Dividends | 0.00% | 0.00% |
2013 Offering | ||
Stock Price | $1.68 | $1.95 |
Exercise price | $2 | $2 |
Expected volatility | 72.66% | 75.71% |
Risk free interest rate | 0.95% | 1.24% |
Expected Term | 3 years 2 months | 3 years 5 months |
Dividends | 0.00% | 0.00% |
Summary_of_changes_in_fair_val
Summary of changes in fair value of company's level 3 financial liabilities (Detail) (Warrants, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Summary of changes in the fair value [Line Items] | |
Balance | $5,307,332 |
Change in fair value of warrant liability | -1,186,302 |
Balance | 4,121,030 |
2014 Offering | |
Summary of changes in the fair value [Line Items] | |
Balance | 4,233,729 |
Change in fair value of warrant liability | -904,317 |
Balance | 3,329,412 |
2013 Offering | |
Summary of changes in the fair value [Line Items] | |
Balance | 1,073,603 |
Change in fair value of warrant liability | -281,985 |
Balance | $791,618 |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Line of Credit Facility [Line Items] | |
Revolving credit facility, maximum borrowing capacity | $2,500,000 |
Credit Facility expiration date | 15-Jan-16 |
Credit Facility limit restricted to support letter of credit | 451,731 |
Line of credit facility, remaining borrowing capacity | $2,000,000 |
Prime Rate | |
Line of Credit Facility [Line Items] | |
Interest rate over prime rate | 0.50% |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Feb. 28, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 12, 2015 | Feb. 25, 2014 | |
Public Offering Of Common Stock and Warrants [Line Items] | ||||||
Closing Price Of Shares | $1.69 | $2.45 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $442,000 | $442,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 9 months 18 days | |||||
Series A4 Preferred Stock | ||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||
Conversion of Stock, Shares Converted | 408 | |||||
Common Stock | ||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 1,571,744 | 200,000 | 1,571,744 | |||
2015 Issuance | 2014 Management Incentive Compensation | ||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 166,405 | |||||
Stock Issued During Period, Value, New Issues | 281,700 | |||||
2014 Issuance | 2013 Management Incentive Compensation | ||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 42,615 | |||||
Stock Issued During Period, Value, New Issues | $104,405 |