Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 15, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 4,389,899 |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 8,739,651 | $ 12,462,872 |
Accounts receivable, net of allowances of $87,714 and $90,111 at March 31, 2016 and December 31, 2015, respectively | 491,259 | 742,714 |
Inventories | 1,513,322 | 1,089,084 |
Prepaid expenses and other current assets | 719,569 | 852,600 |
Total current assets | 11,463,801 | 15,147,270 |
Fixed assets, net | 650,539 | 683,534 |
Other long-term assets | 193,830 | 203,686 |
Total assets | 12,308,170 | 16,034,490 |
Current liabilities: | ||
Accounts payable | 1,381,140 | 1,060,135 |
Accrued compensation | 800,148 | 848,689 |
Accrued expenses | 1,084,846 | 1,055,483 |
Deferred revenue | 3,823 | 227,172 |
Total current liabilities | 3,269,957 | 3,191,479 |
Common stock warrants | 185,987 | 280,303 |
Total liabilities | $ 3,455,944 | $ 3,471,782 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock | $ 0 | $ 0 |
Common stock, $0.0001 par value; 100,000,000 shares authorized at March 31, 2016 and December 31, 2015; 4,389,899 and 4,047,332 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 439 | 405 |
Additional paid-in capital | 176,512,678 | 176,127,932 |
Accumulated deficit | (167,660,905) | (163,565,650) |
Total stockholders’ equity | 8,852,226 | 12,562,708 |
Total liabilities and stockholders’ equity | 12,308,170 | 16,034,490 |
Convertible Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred stock | $ 14 | $ 21 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Allowance for Doubtful Accounts Receivable, Current | $ 87,714 | $ 90,111 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 4,389,899 | 4,047,332 |
Common stock, shares outstanding | 4,389,899 | 4,047,332 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | $ 2,275,247 | $ 1,282,960 |
Cost of revenues | 1,482,513 | 637,261 |
Gross profit | 792,734 | 645,699 |
Operating expenses: | ||
Research and development | 1,156,790 | 902,542 |
Sales and marketing | 2,407,879 | 1,455,686 |
General and administrative | 1,424,341 | 1,546,090 |
Total operating expenses | 4,989,010 | 3,904,318 |
Loss from operations | (4,196,276) | (3,258,619) |
Interest income | 6,705 | 1,089 |
Change in fair value of warrant liability | 94,316 | 1,186,302 |
Net loss | $ (4,095,255) | $ (2,071,228) |
Net loss per common share, basic and diluted | $ (1) | $ (1) |
Weighted average number of common shares outstanding, basic and diluted | 4,090,358 | 2,068,521 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (4,095,255) | $ (2,071,228) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 61,638 | 29,144 |
Stock-based compensation | 66,012 | 83,999 |
Change in fair value of warrant liability | (94,316) | (1,186,302) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 251,455 | (341,355) |
Inventories | (424,238) | 44,577 |
Prepaid expenses and other current assets | 142,887 | 344,874 |
Accounts payable | 379,509 | 311,487 |
Accrued expenses and compensation | 317,732 | 197,589 |
Deferred revenue | (223,349) | (56,466) |
Net cash used in operating activities | (3,617,925) | (2,643,681) |
Cash flows from investing activities: | ||
Purchases of fixed assets | (28,643) | (175,181) |
Net cash used in investing activities | (28,643) | (175,181) |
Cash flows from financing activities: | ||
Payments from issuance of stock and warrants, including public offering and equity plans | (76,653) | 0 |
Net cash used in financing activities | (76,653) | 0 |
Net decrease in cash and cash equivalents | (3,723,221) | (2,818,862) |
Cash and cash equivalents, beginning of period | 12,462,872 | 9,221,985 |
Cash and cash equivalents, end of period | 8,739,651 | 6,403,123 |
Supplemental disclosure of cash flow information: | ||
Common stock issued to settle employee incentive compensation obligation | 318,761 | 281,757 |
Purchases of fixed assets in accounts payable | $ 0 | $ 82,161 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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 Quell ® and SENSUS® which are wearable therapeutic devices designed for relief of chronic, intractable pain. Quell was commercially launched in the United States during the second quarter of 2015. 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 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 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. At March 31, 2016, the Company had an accumulated deficit of $ 167.7 8.7 third third quarter of 2016 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 products or proprietary technologies, or grant licenses on terms that are not favorable to the Company. Without additional funds, the Company may be forced to delay, scale back or eliminate some of its sales and marketing efforts, research and development activities, or other operations and potentially delay product development in an effort to provide sufficient funds to continue its operations. If any of these events occurs, the Company’s ability to achieve its development and commercialization goals would be adversely affected. Certain prior period amounts have been adjusted to reflect the Company's 1-for-4 reverse stock split effected December 2015. Unaudited Interim Financial Statements The accompanying unaudited balance sheet as of March 31, 2016, unaudited statements of operations for the quarters ended March 31, 2016 and 2015 and the unaudited statements of cash flows for the quarters ended March 31, 2016 and 2015 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, 2015 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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or the SEC, on February 12, 2016 (File No. 001-33351), or the Company’s 2015 Form 10-K. 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. 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 product 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 60 553,854 489,467 392,018 378,440 Accounts receivable are recorded net of the allowance for doubtful accounts receivable. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in our existing accounts receivable. The Company reviews the allowance for doubtful accounts and determines the allowance based on an analysis of customer past payment history, product usage activity, and recent communications with the customer. Individual customer balances which are past due and over 90 days outstanding are reviewed individually for collectability. Account balances are written-off against the allowance when the Company feels it is probable the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to our customers. During the first quarter of 2016, two customers accounted for approximately 25 21 27 46 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 February 2016, the FASB issued Accounting Standard 842, Leases In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes 45,000 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 |
Comprehensive Loss
Comprehensive Loss | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Loss | Comprehensive Loss For the quarters ended March 31, 2016 and 2015, 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, 2016 | |
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 Quarters Ended March 31, 2016 2015 Options 214,117 202,314 Warrants 15,816,393 1,440,211 Unvested restricted stock 208 Convertible preferred stock 5,586,669 392,936 Total 21,617,179 2,035,669 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories March 31, December 31, Purchased components $ 667,457 $ 432,437 Finished goods on consignment 23,814 39,784 Finished goods 822,051 616,863 $ 1,513,322 $ 1,089,084 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Compensation and Expenses | Accrued Expenses March 31, December 31, 2016 2015 Technology fees $ 450,000 $ 450,000 Professional services 222,333 336,229 Consulting fees 185,000 92,000 Sales taxes 40,312 56,284 Personnel related obligations 75,881 15,548 Other 111,320 105,422 $ 1,084,846 $ 1,055,483 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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 $ 7,503 37,792 275,961 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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. Fair Value Measurements at March 31, 2016 Using Quoted Prices in Significant Active Markets Significant Other Unobservable for Identical Observable Inputs Inputs March 31,2016 Assets (Level 1) (Level 2) (Level 3) Assets: Cash equivalents $ 4,982,025 $ 4,982,025 $ $ Total $ 4,982,025 $ 4,982,025 $ Liabilities: Common stock warrants $ 185,987 $ $ $ 185,987 Total $ 185,987 $ $ $ 185,987 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, 2016 using the Black-Scholes model, which is based on Level 3 inputs. As of March 31, 2016, inputs used in the Black-Scholes model are presented below. 0.2 Black-Scholes Inputs to Warrant Liability Valuation at March 31, 2016 Expected Warrants: Stock Price Exercise Price Volatility Risk-Free Interest Expected Term Dividends 2014 Offering $ 1.83 $ 8.16 72.1 % 0.9 % 3yr 3mo none 2013 Offering $ 1.83 $ 8.00 64.1 % 0.8 % 2yr 2mo none 2014 Offering 2013 Offering Total Balance at December 31, 2015 $ 227,992 $ 52,311 $ 280,303 Change in fair value of warrant liability (65,266) (29,050) (94,316) Balance at March 31, 2016 $ 162,726 $ 23,261 $ 185,987 Fair Value Measurements at December 31, 2015 Using Quoted Prices in Significant Active Markets Significant Other Unobservable December 31, for Identical Observable Inputs Inputs 2015 Assets (Level 1) (Level 2) (Level 3) Assets: Cash equivalents $ 1,865,498 $ 1,865,498 $ $ Total $ 1,865,498 $ 1,865,498 $ $ Liabilities: Common stock warrants $ 280,303 $ $ $ 280,303 Total $ 280,303 $ $ $ 280,303 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, 2015 using the Black-Scholes model, which is based on Level 3 inputs. As of December 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 $ 0.3 Black-Scholes Inputs to Warrant Liability Valuation at December 31, 2015 Expected Warrants: Stock Price Exercise Price Volatility Risk-Free Interest Expected Term Dividends 2014 Offering $ 1.98 $ 8.16 73.39 % 1.42 % 3yr 6mo none 2013 Offering $ 1.98 $ 8.00 70.42 % 1.17 % 2yr 5mo none |
Credit Facility
Credit Facility | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facility | 8. Credit Facility The Company is party to a Loan and Security Agreement, as amended (the “Credit Facility”), with a bank. As of March 31, 2016 the Credit Facility permitted the Company to borrow up to $ 2.5 January 15, 2017 0.5 226,731 2.3 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Preferred stock and convertible preferred stock consist of the following: March 31, December 31, Preferred stock, $0.001 par value; 5,000,000 shares authorized at March 31, 2016 and December 31, 2015; no shares issued and outstanding at March 31, 2106 and December 31, 2015 $ $ Series B convertible preferred stock, $0.001 par value, 147,000 shares designated at March 31, 2016 and December 31, 2015, and 500 and 7,146 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively 0 7 Series C convertible preferred stock, $0.001 par value, 13,800 shares designated at March 31, 2016 and December 31, 2015, and 13,800 shares issued and outstanding at March 31, 2016 and December 31, 2015 14 14 In January 2016, 100 shares of Series B Preferred Stock were converted by a holder into 2,475 shares of Common Stock. In March 2016, 6,546 shares of Series B Preferred Stock were converted by a holder into 162,014 shares of Common Stock. The 500 shares of Series B Preferred Stock outstanding as of March 31, 2016 are convertible into an aggregate of 12,375 shares of common stock. In March 2016, the Company issued an aggregate of 178,079 shares of fully vested common stock with a value of $318,761 in partial settlement of 2015 management incentive compensation. The shares issued reflected the $1.79 closing price of the Company’s common stock as reported on the NASDAQ Capital Market on March 9, 2016. The 2015 issuance to settle the 2014 management incentive compensation totaled 41,601 shares with a value of $281,757 reflecting the $6.72 NASDAQ Capital Market closing price on March 13, 2015. Total compensation cost related to nonvested awards not yet recognized at March 31, 2016 was $228,753. The total compensation costs are expected to be recognized over a weighted-average period of 2.1 years. |
Business and Basis of Present15
Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 Quell ® and SENSUS® which are wearable therapeutic devices designed for relief of chronic, intractable pain. Quell was commercially launched in the United States during the second quarter of 2015. 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 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 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. At March 31, 2016, the Company had an accumulated deficit of $ 167.7 8.7 third third quarter of 2016 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 products or proprietary technologies, or grant licenses on terms that are not favorable to the Company. Without additional funds, the Company may be forced to delay, scale back or eliminate some of its sales and marketing efforts, research and development activities, or other operations and potentially delay product development in an effort to provide sufficient funds to continue its operations. If any of these events occurs, the Company’s ability to achieve its development and commercialization goals would be adversely affected. Certain prior period amounts have been adjusted to reflect the Company's 1-for-4 reverse stock split effected December 2015. |
Unaudited Interim Financial Statements | The accompanying unaudited balance sheet as of March 31, 2016, unaudited statements of operations for the quarters ended March 31, 2016 and 2015 and the unaudited statements of cash flows for the quarters ended March 31, 2016 and 2015 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, 2015 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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or the SEC, on February 12, 2016 (File No. 001-33351), or the Company’s 2015 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 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. 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 product 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 60 553,854 489,467 392,018 378,440 Accounts receivable are recorded net of the allowance for doubtful accounts receivable. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in our existing accounts receivable. The Company reviews the allowance for doubtful accounts and determines the allowance based on an analysis of customer past payment history, product usage activity, and recent communications with the customer. Individual customer balances which are past due and over 90 days outstanding are reviewed individually for collectability. Account balances are written-off against the allowance when the Company feels it is probable the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to our customers. During the first quarter of 2016, two customers accounted for approximately 25 21 27 46 |
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 February 2016, the FASB issued Accounting Standard 842, Leases In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes 45,000 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 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 Options 214,117 202,314 Warrants 15,816,393 1,440,211 Unvested restricted stock 208 Convertible preferred stock 5,586,669 392,936 Total 21,617,179 2,035,669 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: March 31, December 31, Purchased components $ 667,457 $ 432,437 Finished goods on consignment 23,814 39,784 Finished goods 822,051 616,863 $ 1,513,322 $ 1,089,084 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Compensation and Expenses | Accrued expenses consist of the following: March 31, December 31, 2016 2015 Technology fees $ 450,000 $ 450,000 Professional services 222,333 336,229 Consulting fees 185,000 92,000 Sales taxes 40,312 56,284 Personnel related obligations 75,881 15,548 Other 111,320 105,422 $ 1,084,846 $ 1,055,483 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 March 31, 2016 Using Quoted Prices in Significant Active Markets Significant Other Unobservable for Identical Observable Inputs Inputs March 31,2016 Assets (Level 1) (Level 2) (Level 3) Assets: Cash equivalents $ 4,982,025 $ 4,982,025 $ $ Total $ 4,982,025 $ 4,982,025 $ Liabilities: Common stock warrants $ 185,987 $ $ $ 185,987 Total $ 185,987 $ $ $ 185,987 Fair Value Measurements at December 31, 2015 Using Quoted Prices in Significant Active Markets Significant Other Unobservable December 31, for Identical Observable Inputs Inputs 2015 Assets (Level 1) (Level 2) (Level 3) Assets: Cash equivalents $ 1,865,498 $ 1,865,498 $ $ Total $ 1,865,498 $ 1,865,498 $ $ Liabilities: Common stock warrants $ 280,303 $ $ $ 280,303 Total $ 280,303 $ $ $ 280,303 |
Black-Scholes Inputs to Warrant Liability Valuation | The assumptions used may change as the underlying sources of these assumptions and market conditions change. 0.2 Black-Scholes Inputs to Warrant Liability Valuation at March 31, 2016 Expected Warrants: Stock Price Exercise Price Volatility Risk-Free Interest Expected Term Dividends 2014 Offering $ 1.83 $ 8.16 72.1 % 0.9 % 3yr 3mo none 2013 Offering $ 1.83 $ 8.00 64.1 % 0.8 % 2yr 2mo none Black-Scholes Inputs to Warrant Liability Valuation at December 31, 2015 Expected Warrants: Stock Price Exercise Price Volatility Risk-Free Interest Expected Term Dividends 2014 Offering $ 1.98 $ 8.16 73.39 % 1.42 % 3yr 6mo none 2013 Offering $ 1.98 $ 8.00 70.42 % 1.17 % 2yr 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, 2015 and March 31, 2016 2014 Offering 2013 Offering Total Balance at December 31, 2015 $ 227,992 $ 52,311 $ 280,303 Change in fair value of warrant liability (65,266) (29,050) (94,316) Balance at March 31, 2016 $ 162,726 $ 23,261 $ 185,987 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Preferred stock and convertible preferred stock | Preferred stock and convertible preferred stock consist of the following: March 31, December 31, Preferred stock, $0.001 par value; 5,000,000 shares authorized at March 31, 2016 and December 31, 2015; no shares issued and outstanding at March 31, 2106 and December 31, 2015 $ $ Series B convertible preferred stock, $0.001 par value, 147,000 shares designated at March 31, 2016 and December 31, 2015, and 500 and 7,146 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively 0 7 Series C convertible preferred stock, $0.001 par value, 13,800 shares designated at March 31, 2016 and December 31, 2015, and 13,800 shares issued and outstanding at March 31, 2016 and December 31, 2015 14 14 |
Business and Basis of Present21
Business and Basis of Presentation - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization And Basis Of Presentation [Line Items] | ||||
Deferred Revenue | $ 553,854 | $ 489,467 | ||
Deferred Costs | 392,018 | 378,440 | ||
Retained Earnings (Accumulated Deficit), Total | (167,660,905) | (163,565,650) | ||
Cash and Cash Equivalents, at Carrying Value, Total | $ 8,739,651 | $ 6,403,123 | 12,462,872 | $ 9,221,985 |
Deferred Tax Liabilities, Gross, Noncurrent | $ 45,000 | |||
Minimum [Member] | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Product Sales Right of Return Term | 30 days | |||
Maximum [Member] | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Product Sales Right of Return Term | 60 days | |||
Customer One | Accounts Receivable | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Concentration risk, percentage | 27.00% | 46.00% | ||
Customer One | Sales Revenue, Net | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Concentration risk, percentage | 21.00% | |||
Two Customers [Member] | Sales Revenue, Net | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Concentration risk, percentage | 25.00% |
Comprehensive Loss - Additional
Comprehensive Loss - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | 21,617,179 | 2,035,669 |
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 | 214,117 | 202,314 |
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 | 15,816,393 | 1,440,211 |
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 | 208 |
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 | 5,586,669 | 392,936 |
Inventories (Detail)
Inventories (Detail) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Line Items] | ||
Purchased components | $ 667,457 | $ 432,437 |
Finished goods on consignment | 23,814 | 39,784 |
Finished goods | 822,051 | 616,863 |
Inventories | $ 1,513,322 | $ 1,089,084 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Accrued Liabilities [Line Items] | ||
Technology fees | $ 450,000 | $ 450,000 |
Professional services | 222,333 | 336,229 |
Consulting fees | 185,000 | 92,000 |
Sales taxes | 40,312 | 56,284 |
Personnel related obligations | 75,881 | 15,548 |
Other | 111,320 | 105,422 |
Accrued expenses | $ 1,084,846 | $ 1,055,483 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Operating Leases, Rent Expense | $ 275,961 | ||
5-year operating lease agreement | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Base rent, per month | $ 7,503 | ||
7-year operating lease agreement | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Base rent, per month | $ 37,792 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Cash equivalents | $ 4,982,025 | $ 1,865,498 |
Total | 4,982,025 | 1,865,498 |
Liabilities: | ||
Common stock warrants | 185,987 | 280,303 |
Total | 185,987 | 280,303 |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 4,982,025 | 1,865,498 |
Total | 4,982,025 | 1,865,498 |
Liabilities: | ||
Common stock warrants | 0 | 0 |
Total | 0 | 0 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Common stock warrants | 0 | 0 |
Total | 0 | 0 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Common stock warrants | 185,987 | 280,303 |
Total | $ 185,987 | $ 280,303 |
Black-Scholes Inputs to Warrant
Black-Scholes Inputs to Warrant Liability Valuation (Detail) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
2014 Offering | ||
Stock Price | $ 1.83 | $ 1.98 |
Exercise price | $ 8.16 | $ 8.16 |
Expected volatility | 72.10% | 73.39% |
Risk free interest rate | 0.90% | 1.42% |
Expected Term | 3 years 3 months | 3 years 6 months |
Dividends | 0.00% | 0.00% |
2013 Offering | ||
Stock Price | $ 1.83 | $ 1.98 |
Exercise price | $ 8 | $ 8 |
Expected volatility | 64.10% | 70.42% |
Risk free interest rate | 0.80% | 1.17% |
Expected Term | 2 years 2 months | 2 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 | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Summary of changes in the fair value [Line Items] | |
Balance | $ 280,303 |
Change in fair value of warrant liability | (94,316) |
Balance | 185,987 |
2014 Offering | |
Summary of changes in the fair value [Line Items] | |
Balance | 227,992 |
Change in fair value of warrant liability | (65,266) |
Balance | 162,726 |
2013 Offering | |
Summary of changes in the fair value [Line Items] | |
Balance | 52,311 |
Change in fair value of warrant liability | (29,050) |
Balance | $ 23,261 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Line Items] | ||
Common stock warrants liability | $ 185,987 | $ 280,303 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Revolving credit facility, maximum borrowing capacity | $ 2,500,000 |
Credit Facility expiration date | Jan. 15, 2017 |
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 (Detail)
Stockholders' Equity (Detail) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Preferred stock | $ 0 | $ 0 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock | 0 | 7 |
Series C Convertible Preferred Stock [Member] | ||
Preferred stock | $ 14 | $ 14 |
Stockholders' Equity (Detail) (
Stockholders' Equity (Detail) (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock Shares Designated | 147,000 | 147,000 |
Preferred stock, issued | 500 | 7,146 |
Preferred stock, outstanding | 500 | 7,146 |
Series C Convertible Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock Shares Designated | 13,800 | 13,800 |
Preferred stock, issued | 13,800 | 13,800 |
Preferred stock, outstanding | 13,800 | 13,800 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Jan. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 09, 2016 | Mar. 13, 2015 | |
Public Offering Of Common Stock and Warrants [Line Items] | ||||||
Closing Price Of Shares | $ 1.79 | $ 6.72 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 228,753 | $ 228,753 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 6 days | |||||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 | |||
Series B Preferred Stock | ||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||
Conversion of Stock, Shares Converted | 6,546 | 100 | ||||
Preferred Stock, Shares Outstanding | 500 | 500 | ||||
Common Stock | ||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 162,014 | |||||
Convertible Preferred Stock, Shares Issued upon Conversion | 12,375 | 2,475 | 12,375 | |||
2015 Issuance | 2014 Management Incentive Compensation | ||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 41,601 | |||||
Stock Issued During Period, Value, New Issues | $ 281,757 | |||||
2016 Issuance | 2015 Management Incentive Compensation | ||||||
Public Offering Of Common Stock and Warrants [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 178,079 | |||||
Stock Issued During Period, Value, New Issues | $ 318,761 |