Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 22, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | NeuroMetrix, Inc. | |
Entity Central Index Key | 1,289,850 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | NURO | |
Entity Common Stock, Shares Outstanding | 11,040,959 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 12,638,982 | $ 9,221,985 |
Accounts receivable, net | 588,686 | 580,240 |
Inventories | 1,221,600 | 679,740 |
Prepaid expenses and other current assets | 550,072 | 608,160 |
Total current assets | 14,999,340 | 11,090,125 |
Fixed assets, net | 809,519 | 311,520 |
Other long-term assets | 224,127 | 585 |
Total assets | 16,032,986 | 11,402,230 |
Current liabilities: | ||
Accounts payable | 875,519 | 522,871 |
Accrued compensation | 632,347 | 885,353 |
Accrued expenses | 1,241,157 | 1,264,876 |
Current portion of deferred revenue | 612,090 | 25,048 |
Total current liabilities | 3,361,113 | 2,698,148 |
Deferred revenue, net of current portion | 9,732 | 9,635 |
Common stock warrants | 1,041,911 | 5,307,332 |
Total liabilities | $ 4,412,756 | $ 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; 10,996,408 and 8,152,746 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively | 1,100 | 815 |
Additional paid-in capital | 169,271,744 | 157,764,598 |
Accumulated deficit | (157,652,736) | (154,378,302) |
Total stockholders’ equity | 11,620,230 | 3,387,115 |
Total liabilities and stockholders’ equity | 16,032,986 | 11,402,230 |
Series A Convertible Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock value | 0 | 4 |
Series B Convertible Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock value | $ 122 | $ 0 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 10,996,408 | 3,614.357 |
Common stock, shares outstanding | 10,996,408 | 3,614.357 |
Series A Convertible Preferred Stock | ||
Preferred stock, shares authorized | 11,083 | 4.438 |
Preferred stock, issued | 0 | 3,614,357 |
Preferred stock, outstanding | 0 | 3,614,357 |
Series B Convertible Preferred Stock | ||
Preferred stock, shares authorized | 147,000 | 0 |
Preferred stock, issued | 122,316 | 0 |
Preferred stock, outstanding | 122,316 | 0 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | $ 1,224,987 | $ 1,343,770 | $ 2,507,947 | $ 2,675,307 |
Cost of revenues | 595,032 | 655,337 | 1,232,293 | 1,270,418 |
Gross profit | 629,955 | 688,433 | 1,275,654 | 1,404,889 |
Operating expenses: | ||||
Research and development | 982,253 | 1,464,834 | 1,884,795 | 2,328,551 |
Sales and marketing | 1,762,282 | 694,664 | 3,217,968 | 1,140,880 |
General and administrative | 1,224,822 | 1,148,278 | 2,770,912 | 2,295,035 |
Total operating expenses | 3,969,357 | 3,307,776 | 7,873,675 | 5,764,466 |
Loss from operations | (3,339,402) | (2,619,343) | (6,598,021) | (4,359,577) |
Interest income | 500 | 990 | 1,589 | 2,026 |
Warrants offering costs | 0 | (27,618) | 0 | (27,618) |
Change in fair value of warrant liability | 2,135,696 | 475,261 | 3,321,998 | 989,861 |
Net loss | $ (1,203,206) | $ (2,170,710) | $ (3,274,434) | $ (3,395,308) |
Net loss per common share applicable to common stockholders, basic and diluted (See Note 3, Net Loss per Common Share) | $ (0.52) | $ (0.85) | $ (0.78) | $ (1.06) |
Weighted average number of common shares outstanding, basic and diluted | 9,189,231 | 6,002,330 | 8,734,185 | 5,966,929 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (3,274,434) | $ (3,395,308) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 95,486 | 66,293 |
Stock-based compensation | 172,402 | 137,164 |
Warrant offering cost | 0 | 27,618 |
Change in fair value of warrant liability | (3,321,998) | (989,861) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,446) | (141,915) |
Inventories | (541,860) | (41,030) |
Prepaid expenses and other current and long-term assets | (165,454) | 65,028 |
Accounts payable | 262,191 | 211,636 |
Accrued expenses and compensation | 5,032 | 636,551 |
Deferred revenue | 587,139 | (21,028) |
Net cash used in operating activities | (6,189,942) | (3,444,852) |
Cash flows from investing activities: | ||
Purchases of fixed assets | (503,028) | (17,392) |
Net cash used in investing activities | (503,028) | (17,392) |
Cash flows from financing activities: | ||
Proceeds from issuance of stock and warrants, net of offering costs | 13,316,324 | 7,960,283 |
Repurchase of Series A-4 preferred stock and warrants | (3,206,357) | 0 |
Net cash provided by financing activities | 10,109,967 | 7,960,283 |
Net increase in cash and cash equivalents | 3,416,997 | 4,498,039 |
Cash and cash equivalents, beginning of period | 9,221,985 | 9,195,753 |
Cash and cash equivalents, end of period | 12,638,982 | 13,693,792 |
Supplemental disclosure of cash flow information: | ||
Common stock issued to settle employee incentive compensation obligation | 281,757 | 104,405 |
Warrants issued under Securities Purchase Agreement recorded as a non-current liability | $ 0 | $ 4,418,824 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | 1. Business and Basis of Presentation 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 SENSUS TM TM 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 $ 12.6 The accompanying unaudited balance sheet as of June 30, 2015, unaudited statements of operations for the quarters and six months ended June 30, 2015 and 2014 and the unaudited statements of cash flows for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. 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 June 30, 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. 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 accounting principles generally accepted in the United States of America. 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 Company’s medical devices and consumables, including single use nerve specific electrodes and other accessories are generally recognized upon shipment, assuming all other revenue criteria have been met. For the Company’s newest product, Quell, launched in June 2015, there was insufficient data available at June 30, 2015 to reasonably estimate product returns. Accordingly, approximately $ 573,000 320,000 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 or, for its newest product, Quell, a 60-day right of return., Since the Company can reasonably estimate future returns for products other than Quell, it recognizes revenues associated with such 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. One customer accounted for 20 21 15 11 13 12 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. 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 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 standard is effective for public entities for annual and interim periods beginning after December 15, 2017. 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 | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Loss | 2. Comprehensive Loss For the quarters and six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | 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 Quarters Ended June 30, 2015 2014 Options 865,507 302,958 Warrants 18,889,103 5,760,847 Unvested restricted stock 882 Convertible preferred stock 12,109,284 3,156,969 Total 31,863,894 9,221,656 3,206.357 Quarters Ended Six Months Ended 2015 2014 2015 2014 Net loss $ (1,203,206) $ (2,170,710) $ (3,274,434) $ (3,395,308) Deemed dividend attributable to preferred stockholders in connection with embedded beneficial conversion features (4,140,446) (2,955,668) (4,140,446) (2,955,668 Return of capital to common shareholders attributable to the repurchase of the Series A-4 preferred shares and related embedded beneficial conversion feature 589,751 589,751 Net loss applicable to common stockholders $ (4,753,901) $ (5,126,378) $ (6,825,129) $ (6,350,976) Net loss per common share applicable to common stockholders, basic and diluted $ (0.52) $ (0.85) $ (0.78) $ (1.06) Weighted average number of common shares outstanding, basic and diluted 9,189,231 6,002,330 8,734,185 5,966,929 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories June 30, December 31, Purchased components $ 674,553 $ 209,426 Finished goods 547,047 470,314 $ 1,221,600 $ 679,740 |
Accrued Compensation and Expens
Accrued Compensation and Expenses | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Compensation and Expenses | 5. Accrued Compensation and Expenses June 30, Balance - beginning $ 148,921 Accrual for severance Severance payments made (148,921) Balance - ending $ June 30, December 31, Technology fees $ 450,000 $ 450,000 Consulting fees 240,906 173,759 Professional services 218,534 257,024 Personnel related obligations 80,859 37,761 Sales taxes 70,573 34,206 Clinical study obligations 68,000 74,000 Federal excise tax 26,716 25,989 Other 85,569 212,137 $ 1,241,157 $ 1,264,876 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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 37,792 275,000 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 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 Value Measurements at June 30, 2015 Using June 30,2015 Quoted Prices in Significant Other Significant Assets: Cash equivalents $ 8,652,998 $ 8,652,998 $ $ Total $ 8,652,998 $ 8,652,998 $ Liabilities: Common stock warrants $ 1,041,911 $ $ $ 1,041,911 Total $ 1,041,911 $ $ $ 1,041,911 Due to the lack of market quotes relating to our common stock warrants issued in the 2014 Offering and a 2013 financing (see Note 9), the fair value of the common stock warrants was determined at June 30, 2015 using the Black-Scholes model, which is based on Level 3 inputs. As of June 30, 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. 1.0 1,571,744 943,423 Black-Scholes Inputs to Warrant Liability Valuation at June 30, 2015 Warrants: Stock Price Exercise Price Expected Volatility Risk-Free Interest Expected Term Dividends 2014 Offering $ 0.91 $ 2.04 73.52 % 1.32 % 4yr 0mo none 2013 Offering $ 0.91 $ 2.00 73.65 % 0.99 % 2yr 11mo none 2014 Offering 2013 Offering Total Balance at December 31, 2014 $ 4,233,729 $ 1,073,603 $ 5,307,332 Repurchase of warrants in conjunction with public offering (943,423) (943,423) Change in fair value of warrant liability (2,516,744) (805,254) (3,321,998) Balance at June 30, 2015 $ 773,562 $ 268,349 $ 1,041,911 Fair Value Measurements at December 31, 2014 Using December 31, Quoted Prices in Significant Other Significant 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 then outstanding, 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 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 $ 2.00 75.71 % 1.24 % 3yr 5mo none |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 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 June 30, 2015 the Credit Facility permitted the Company to borrow up to $ 2.5 January 15, 2016 0.5 226,731 2.3 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Public Offerings of Common Stock and Warrants In May 2015, the Company completed an underwritten public offering (the “2015 Offering”) of (i) 147,000 100 five year 14,553,000 1.25 14.7 3.2 10.1 Each share of Series B Preferred Stock had a stated value of $ 100 1.0101 The Series B Preferred Stock is convertible into an aggregate of 14,553,000 24,684 2,443,716 The terms and conditions of the Series B 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 Series B Preferred Stock. The conversion price at which shares of Series B 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 entering into the agreement with the underwriter. 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 Series B Preferred Stock would realize upon conversion based on the value of the conversion shares on the date of the underwriting agreement). Because there was not a stated redemption date for the shares of Series B Preferred Stock, the BCF was recognized as a deemed dividend attributable to the Series B Preferred Stock and reflected as an adjustment in the calculation of earnings per share. The amount of the BCF totaled $ 4,140,446 The Company determined that equity classification was appropriate for the warrants in the 2015 Offering following guidance in the Derivatives and Hedging topic of the Codification. In making this equity classification determination, the Company noted the warrants had no requirements to be settled in registered shares when exercised, and the Company is not required to pay cash in the event it does not make timely filings with the SEC. The fair value of the warrants issued in connection with the 2015 Offering was estimated to be $ 3.2 In June 2014, the Company entered into a securities purchase agreement (the “2014 Offering”) for the issuance of (i) 664,600 2.04 2,621.859 1,000 4,022.357 1,000 five year 3,921,569 2.04 8.0 7.9 In the 2014 Offering, each share of Preferred Stock had a stated value of $ 1,000 2.04 The 2014 Offering BCF measurement was limited by the transaction proceeds which had been allocated to the Preferred Stock. The BCF was recognized as a deemed dividend attributable to the Preferred Stock and reflected as an adjustment in the calculation of earnings per share in the quarter ended June 30, 2014. The amount of the BCF totaled $ 2,955,668 The Series A-3 Preferred Stock was convertible into an aggregate of 1,285,225 1,971,744 204 100,000 2,417.859 1,185,225 408 200,000 408 200,000 3,206.357 1,000 3.2 The Company continues to revalue unexercised warrants from the 2014 Offering 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 were recognized in the Company's statement of operations. The warrants issued in connection with the 2014 Offering were 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, and since the Company is required to pay cash in the event it does not make timely filings with the SEC, the Company reflected the warrants as a liability in the balance sheet. The fair value of the warrants issued in connection with the 2014 Offering was estimated to be $ 4.4 2.00 2.04 67.48 1.64 five years 2,349,825 0.7 1,057,323 0.3 In 2015 and 2014, the Company issued shares of fully vested common stock in partial settlement of management incentive compensation. In March 2015, the Company issued an aggregate of 166,405 281,700 1.69 42,615 104,405 2.45 Total compensation cost related to nonvested awards not yet recognized at June 30, 2015 was $ 402,000 2.5 |
Business and Basis of Present15
Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 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 SENSUS TM TM 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 $ 12.6 |
Unaudited Interim Financial Statements | Unaudited Interim Financial Statements The accompanying unaudited balance sheet as of June 30, 2015, unaudited statements of operations for the quarters and six months ended June 30, 2015 and 2014 and the unaudited statements of cash flows for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. 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 June 30, 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. 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 accounting principles generally accepted in the United States of America. |
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 Company’s medical devices and consumables, including single use nerve specific electrodes and other accessories are generally recognized upon shipment, assuming all other revenue criteria have been met. For the Company’s newest product, Quell, launched in June 2015, there was insufficient data available at June 30, 2015 to reasonably estimate product returns. Accordingly, approximately $ 573,000 320,000 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 or, for its newest product, Quell, a 60-day right of return., Since the Company can reasonably estimate future returns for products other than Quell, it recognizes revenues associated with such 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. One customer accounted for 20 21 15 11 13 12 |
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 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 standard is effective for public entities for annual and interim periods beginning after December 15, 2017. 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 2014 Options 865,507 302,958 Warrants 18,889,103 5,760,847 Unvested restricted stock 882 Convertible preferred stock 12,109,284 3,156,969 Total 31,863,894 9,221,656 |
Schedule of Earnings Per Share, Basic and Diluted | The Beneficial Conversion Feature, or BCF, recorded in both the 2015 Offering and 2014 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. In May 2015, a BCF has been recognized as a return of capital from the preferred shareholders to the common shareholders attributable to the repurchase of 3,206.357 Quarters Ended Six Months Ended 2015 2014 2015 2014 Net loss $ (1,203,206) $ (2,170,710) $ (3,274,434) $ (3,395,308) Deemed dividend attributable to preferred stockholders in connection with embedded beneficial conversion features (4,140,446) (2,955,668) (4,140,446) (2,955,668 Return of capital to common shareholders attributable to the repurchase of the Series A-4 preferred shares and related embedded beneficial conversion feature 589,751 589,751 Net loss applicable to common stockholders $ (4,753,901) $ (5,126,378) $ (6,825,129) $ (6,350,976) Net loss per common share applicable to common stockholders, basic and diluted $ (0.52) $ (0.85) $ (0.78) $ (1.06) Weighted average number of common shares outstanding, basic and diluted 9,189,231 6,002,330 8,734,185 5,966,929 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: June 30, December 31, Purchased components $ 674,553 $ 209,426 Finished goods 547,047 470,314 $ 1,221,600 $ 679,740 |
Accrued Compensation and Expe18
Accrued Compensation and Expenses (Tables) | 6 Months Ended |
Jun. 30, 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 expense in the Company’s Statement of Operations for the year ended December 31, 2014. The severance obligations have been fully paid as of June 30, 2015. June 30, Balance - beginning $ 148,921 Accrual for severance Severance payments made (148,921) Balance - ending $ |
Accrued Compensation and Expenses | Accrued expenses consist of the following: June 30, December 31, Technology fees $ 450,000 $ 450,000 Consulting fees 240,906 173,759 Professional services 218,534 257,024 Personnel related obligations 80,859 37,761 Sales taxes 70,573 34,206 Clinical study obligations 68,000 74,000 Federal excise tax 26,716 25,989 Other 85,569 212,137 $ 1,241,157 $ 1,264,876 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 Using June 30,2015 Quoted Prices in Significant Other Significant Assets: Cash equivalents $ 8,652,998 $ 8,652,998 $ $ Total $ 8,652,998 $ 8,652,998 $ Liabilities: Common stock warrants $ 1,041,911 $ $ $ 1,041,911 Total $ 1,041,911 $ $ $ 1,041,911 Fair Value Measurements at December 31, 2014 Using December 31, Quoted Prices in Significant Other Significant 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 $ 1.0 1,571,744 943,423 Black-Scholes Inputs to Warrant Liability Valuation at June 30, 2015 Warrants: Stock Price Exercise Price Expected Volatility Risk-Free Interest Expected Term Dividends 2014 Offering $ 0.91 $ 2.04 73.52 % 1.32 % 4yr 0mo none 2013 Offering $ 0.91 $ 2.00 73.65 % 0.99 % 2yr 11mo none 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 $ 2.00 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 December 31, 2014 and June 30, 2015. 2014 Offering 2013 Offering Total Balance at December 31, 2014 $ 4,233,729 $ 1,073,603 $ 5,307,332 Repurchase of warrants in conjunction with public offering (943,423) (943,423) Change in fair value of warrant liability (2,516,744) (805,254) (3,321,998) Balance at June 30, 2015 $ 773,562 $ 268,349 $ 1,041,911 |
Business and Basis of Present20
Business and Basis of Presentation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization And Basis Of Presentation [Line Items] | ||||||
Cash and cash equivalents | $ 12,638,982 | $ 13,693,792 | $ 12,638,982 | $ 13,693,792 | $ 9,221,985 | $ 9,195,753 |
Deferred Revenue | 573,000 | 573,000 | ||||
Deferred Costs | $ 320,000 | $ 320,000 | ||||
Customer One | Accounts Receivable | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Concentration risk, percentage | 15.00% | |||||
Customer One | Sales Revenue, Net | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Concentration risk, percentage | 20.00% | 13.00% | 21.00% | 12.00% | ||
Customer Two | Accounts Receivable | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Concentration risk, percentage | 11.00% |
Comprehensive Loss - Additional
Comprehensive Loss - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss), net of tax | $ 0 | $ 0 |
Anti-dilutive Common Stock Equi
Anti-dilutive Common Stock Equivalents Excluded from Calculation of Diluted Net Income Per Common Share (Detail) - shares | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 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 | 31,863,894 | 9,221,656 |
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 | 865,507 | 302,958 |
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 | 18,889,103 | 5,760,847 |
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 | 0 | 882 |
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 | 12,109,284 | 3,156,969 |
Determination of Net Loss Per C
Determination of Net Loss Per Common Share (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Determination of net loss per common share [Line Items] | ||||
Net loss | $ (1,203,206) | $ (2,170,710) | $ (3,274,434) | $ (3,395,308) |
Deemed dividend attributable to preferred stockholders in connection with embedded beneficial conversion features | (4,140,446) | (2,955,668) | (4,140,446) | (2,955,668) |
Return of capital to common shareholders attributable to the repurchase of the Series A-4 preferred shares and related embedded beneficial conversion feature | 589,751 | 0 | 589,751 | 0 |
Net loss applicable to common stockholders | $ (4,753,901) | $ (5,126,378) | $ (6,825,129) | $ (6,350,976) |
Net loss per common share applicable to common stockholders, basic and diluted | $ (0.52) | $ (0.85) | $ (0.78) | $ (1.06) |
Weighted average number of common shares outstanding, basic and diluted | 9,189,231 | 6,002,330 | 8,734,185 | 5,966,929 |
Net Loss Per Common Share - Add
Net Loss Per Common Share - Additional Information (Detail) - shares | 1 Months Ended | ||
May. 31, 2015 | Feb. 28, 2015 | Oct. 31, 2014 | |
Series A4 Preferred Stock | |||
Conversion of Stock [Line Items] | |||
Conversion of Stock, Shares Converted | 3,206.357 | 408 | 408 |
Inventories (Detail)
Inventories (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Line Items] | ||
Purchased components | $ 674,553 | $ 209,426 |
Finished goods | 547,047 | 470,314 |
Inventories | $ 1,221,600 | $ 679,740 |
Rollforward of the Liability Ba
Rollforward of the Liability Balance for Severance (Detail) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning Balance | $ 148,921 |
Accrual for severance | 0 |
Severance payments made | (148,921) |
Ending Balance | $ 0 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Accrued Liabilities [Line Items] | ||
Technology fees | $ 450,000 | $ 450,000 |
Consulting fees | 240,906 | 173,759 |
Professional services | 218,534 | 257,024 |
Personnel related obligations | 80,859 | 37,761 |
Sales taxes | 70,573 | 34,206 |
Clinical study obligations | 68,000 | 74,000 |
Federal excise tax | 26,716 | 25,989 |
Other | 85,569 | 212,137 |
Accrued expenses | $ 1,241,157 | $ 1,264,876 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | |
Sep. 30, 2014 | Aug. 31, 2014 | Jun. 30, 2015 | |
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 - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 1 Months Ended | ||
May. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Line Items] | |||
Common stock warrants liability | $ 1,041,911 | $ 5,307,332 | |
Warrants Fair Value Disclosure | $ 943,423 | ||
Number Of Warrants Repurchased | 1,571,744 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash equivalents | $ 8,652,998 | $ 4,107,478 |
Total | 8,652,998 | 4,107,478 |
Liabilities: | ||
Common stock warrants | 1,041,911 | 5,307,332 |
Total | 1,041,911 | 5,307,332 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Total | 8,652,998 | 4,107,478 |
Liabilities: | ||
Total | 0 | 0 |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 8,652,998 | 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 | 1,041,911 | 5,307,332 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Liabilities: | ||
Common stock warrants | $ 1,041,911 | $ 5,307,332 |
Black-Scholes Inputs to Warrant
Black-Scholes Inputs to Warrant Liability Valuation (Detail) - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Stock Price | $ 2.04 | ||
2014 Offering | |||
Stock Price | $ 0.91 | $ 1.95 | |
Exercise price | $ 2.04 | $ 2.04 | |
Expected volatility | 73.52% | 71.11% | |
Risk free interest rate | 1.32% | 1.51% | |
Expected Term | 4 years | 4 years 6 months | |
Dividends | 0.00% | 0.00% | |
2013 Offering | |||
Stock Price | $ 0.91 | $ 1.95 | |
Exercise price | $ 2 | $ 2 | |
Expected volatility | 73.65% | 75.71% | |
Risk free interest rate | 0.99% | 1.24% | |
Expected Term | 2 years 11 months | 3 years 5 months | |
Dividends | 0.00% | 0.00% |
Summary of changes in fair valu
Summary of changes in fair value of company's level 3 financial liabilities (Detail) - Warrants | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Summary of changes in the fair value [Line Items] | |
Balance | $ 5,307,332 |
Repurchase of warrants in conjunction with public offering | (943,423) |
Change in fair value of warrant liability | (3,321,998) |
Balance | 1,041,911 |
2014 Offering | |
Summary of changes in the fair value [Line Items] | |
Balance | 4,233,729 |
Repurchase of warrants in conjunction with public offering | (943,423) |
Change in fair value of warrant liability | (2,516,744) |
Balance | 773,562 |
2013 Offering | |
Summary of changes in the fair value [Line Items] | |
Balance | 1,073,603 |
Repurchase of warrants in conjunction with public offering | 0 |
Change in fair value of warrant liability | (805,254) |
Balance | $ 268,349 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - Jun. 30, 2015 - USD ($) | Total |
Line of Credit Facility [Line Items] | |
Revolving credit facility, maximum borrowing capacity | $ 2,500,000 |
Credit Facility expiration date | Jan. 15, 2016 |
Credit Facility limit restricted to support letter of credit | $ 226,731 |
Line of credit facility, remaining borrowing capacity | $ 2,300,000 |
Prime Rate | |
Line of Credit Facility [Line Items] | |
Interest rate over prime rate | 0.50% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Mar. 12, 2015 | Feb. 25, 2014 | |
Public Offering Of Common Stock and Warrants [Line Items] | ||||||||||||
Net proceed from offering common stock and warrants | $ 7,900,000 | $ 13,316,324 | $ 7,960,283 | |||||||||
Period over which warrants become exercisable | 5 years | |||||||||||
Stock issued during period, shares, other | 664,600 | |||||||||||
Share price | $ 2.04 | $ 2.04 | ||||||||||
Gross proceeds from issuance or sale of equity | $ 8,000,000 | |||||||||||
Class of warrant or right, Number of securities called by warrants or rights | 3,921,569 | 3,921,569 | ||||||||||
Closing Price Of Shares | $ 1.69 | $ 2.45 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.04 | $ 2.04 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 402,000 | $ 402,000 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 1,000 | $ 0.001 | $ 1,000 | $ 0.001 | |||||||
Payments for Repurchase of Equity | $ 3,206,357 | $ 0 | ||||||||||
Series A-3 convertible Preferred Stock | ||||||||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||||||||
Stock issued during period, shares, other | 2,621.859 | |||||||||||
Share price | $ 1,000 | $ 1,000 | ||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,285,225 | |||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 1,185,225 | 100,000 | 100,000 | |||||||||
Conversion of Stock, Shares Converted | 2,417.859 | 204 | ||||||||||
Series A-4 convertible Preferred Stock | ||||||||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||||||||
Stock issued during period, shares, other | 4,022.357 | |||||||||||
Share price | $ 1,000 | $ 1,000 | ||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 1,971,744 | 1,971,744 | ||||||||||
Series B Preferred Stock | ||||||||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||||||||
Conversion of Stock, Shares Converted | 24,684 | |||||||||||
Preferred Stock Conversion Price Per Share | $ 1.0101 | |||||||||||
Series A4 Preferred Stock | ||||||||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||||||||
Conversion of Stock, Shares Converted | 3,206.357 | 408 | 408 | |||||||||
Preferred Stock, Redemption Price Per Share | $ 1,000 | |||||||||||
Warrants | ||||||||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||||||||
Period over which warrants become exercisable | 5 years | |||||||||||
Fair Value of Warrants | $ 4,400,000 | $ 4,400,000 | ||||||||||
Exercise price | $ 2.04 | $ 2.04 | ||||||||||
Expected volatility | 67.48% | |||||||||||
Risk free interest rate | 1.64% | |||||||||||
Share price | $ 2 | $ 2 | ||||||||||
Common Stock | ||||||||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,443,716 | 14,553,000 | 200,000 | 200,000 | 2,443,716 | |||||||
2014 Offering | ||||||||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | $ 2,955,668 | |||||||||||
Warrants and Rights Outstanding | $ 700,000 | $ 700,000 | ||||||||||
Proceeds used to repurchase outstanding preferred shares | $ 3,200,000 | |||||||||||
Class of Warrant or Right, Outstanding | 2,349,825 | 2,349,825 | ||||||||||
2013 Offering | ||||||||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||||||||
Warrants and Rights Outstanding | $ 300,000 | $ 300,000 | ||||||||||
Class of Warrant or Right, Outstanding | 1,057,323 | 1,057,323 | ||||||||||
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 | |||||||||||
2015 Offering | ||||||||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||||||||
Net proceed from offering common stock and warrants | $ 10,100,000 | |||||||||||
Period over which warrants become exercisable | 5 years | |||||||||||
Fair Value of Warrants | $ 3,200,000 | |||||||||||
Share price | $ 100 | $ 100 | ||||||||||
Gross proceeds from issuance or sale of equity | $ 14,700,000 | |||||||||||
Class of warrant or right, Number of securities called by warrants or rights | 14,553,000 | |||||||||||
Stock Issued During Period, Shares, New Issues | 147,000 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.25 | |||||||||||
Debt Instrument, Convertible, Beneficial Conversion Feature | $ 4,140,446 | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 100 |