Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 12, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NeuroMetrix, Inc. | |
Entity Central Index Key | 1,289,850 | |
Trading Symbol | NURO | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 7,365,038 |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 7,530,598 | $ 4,043,681 |
Accounts receivable, net | 1,615,842 | 1,049,329 |
Inventories | 2,597,340 | 2,142,561 |
Prepaid expenses and other current assets | 827,823 | 1,867,803 |
Total current assets | 12,571,603 | 9,103,374 |
Fixed assets, net | 380,468 | 440,842 |
Other long-term assets | 86,255 | 55,008 |
Total assets | 13,038,326 | 9,599,224 |
Current liabilities: | ||
Accounts payable | 1,151,235 | 733,305 |
Accrued expenses and compensation | 1,921,406 | 2,362,124 |
Accrued Sales Return provisions | 1,105,960 | 666,375 |
Deferred revenue | 0 | 820,031 |
Total current liabilities | 4,178,601 | 4,581,835 |
Total liabilities | 4,178,601 | 4,581,835 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.0001 par value; 100,000,000 shares authorized at September 30, 2018 and December 31, 2017; 7,365,038 and 2,706,066 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 737 | 271 |
Additional paid-in capital | 197,072,928 | 196,355,142 |
Accumulated deficit | (188,213,958) | (191,338,054) |
Total stockholders’ equity | 8,859,725 | 5,017,389 |
Total liabilities and stockholders’ equity | 13,038,326 | 9,599,224 |
Non-Convertible Preferred Stock | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Convertible preferred stock | ||
Stockholders’ equity: | ||
Preferred stock | $ 18 | $ 30 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Common Stock, Shares, Outstanding | 7,365,038 | 2,706,066 |
Common Stock, Shares, Issued | 7,365,038 | 2,706,066 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Noninterest Income | $ 3,750,000 | $ 0 | $ 12,255,704 | $ 0 |
Other Income | 3,768,686 | 3,881 | 12,296,669 | 219,498 |
Other income | 18,686 | 3,881 | 40,965 | 219,498 |
Net income (loss) | 1,086,058 | (3,508,983) | 2,826,238 | (9,979,179) |
Loss from operations | (2,682,628) | (3,512,864) | (9,470,431) | (10,198,677) |
Net income (loss) applicable to common stockholders: | ||||
Deemed dividends attributable to preferred shareholders | 0 | (2,833,098) | 0 | (6,874,780) |
Net income (loss) applicable to common stockholders | $ 1,086,058 | $ (6,342,081) | $ 2,826,238 | $ (16,853,959) |
Earnings Per Share, Basic | $ 0.15 | $ (3.11) | $ 0.40 | $ (11.62) |
Earnings Per Share, Diluted | $ 0.08 | $ (3.11) | $ 0.20 | $ (11.62) |
Weighted Average Number of Shares Outstanding, Basic | 7,365,038 | 2,036,117 | 7,016,789 | 1,450,237 |
Operating expenses: | ||||
Research and development | $ 1,178,468 | $ 840,577 | $ 4,074,895 | $ 2,621,445 |
Sales and marketing | 2,334,340 | 2,919,504 | 7,039,933 | 8,436,497 |
General and administrative | 1,015,489 | 1,258,466 | 3,990,266 | 3,925,595 |
Total operating expenses | 4,528,297 | 5,018,547 | 15,105,094 | 14,983,537 |
Revenues | 3,666,780 | 3,546,680 | 12,361,338 | 12,162,861 |
Gross profit | 1,845,669 | 1,505,683 | 5,634,663 | 4,784,860 |
Cost of revenues | $ 1,821,111 | $ 2,040,997 | $ 6,726,675 | $ 7,378,001 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,826,238 | $ (9,979,179) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 166,262 | 198,892 |
Stock-based compensation | 414,722 | 170,093 |
Change in fair value of warrant liability | 0 | (208,480) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 786,986 | 315,285 |
Inventories | (454,779) | (533,836) |
Prepaid expenses and other current and long-term assets | 425,242 | (365,547) |
Accounts payable | 417,930 | (22,074) |
Accrued expenses and compensation | (146,454) | 678,326 |
Increase (Decrease) in Accrued Product Returns | (852,596) | (30,529) |
Deferred revenue | 0 | 297,558 |
Net Cash Provided by (Used in) Operating Activities | 3,583,551 | (9,479,491) |
Cash flows from investing activities: | ||
Purchases of fixed assets | (105,888) | (70,226) |
Net Cash Provided by (Used in) Investing Activities | (105,888) | (70,226) |
Cash flows from financing activities: | ||
Net proceeds from issuance of stock and warrants | 9,254 | 9,569,800 |
Net Cash Provided by (Used in) Financing Activities | 9,254 | 9,569,800 |
Net increase in cash and cash equivalents | 3,486,917 | 20,083 |
Cash and cash equivalents, beginning of period | 4,043,681 | 3,949,135 |
Cash and cash equivalents, end of period | 7,530,598 | 3,969,218 |
Supplemental disclosure of cash flow information: | ||
Change in fair value of warrant liability from repricing | 0 | 244,611 |
Exchange of warrant liability for Series F Preferred Stock | 0 | (40,772) |
Common stock issued to settle employee incentive compensation obligation | $ 294,264 | $ 0 |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Our Business-An Overview NeuroMetrix, Inc., or the Company, is a commercial stage, innovation driven healthcare company combining bioelectrical and digital medicine to address chronic health conditions including chronic pain, sleep disorders, and diabetes. The Company’s lead product is Quell, an over-the-counter wearable therapeutic device for chronic pain. Quell is integrated into a digital health platform that helps patients optimize their therapy and decrease the impact of chronic pain on their quality of life. The Company also markets DPNCheck®, a rapid point-of-care test for diabetic neuropathy, which is the most common long-term complication of Type 2 diabetes. The Company maintains an active research effort. The Company is located in Waltham, Massachusetts and was founded as a spinoff from the Harvard-MIT Division of Health Sciences and Technology in 1996. In January 2018, the Company entered into a collaboration (the "Collaboration") with GlaxoSmithKline ("GSK"). The Collaboration set up a framework for the joint development of the next generation of Quell, recently launched in the United States in September 2018, and the assignment of areas of marketing responsibility. The initial term of the Collaboration runs through 2020. Through September 30, 2018 , GSK has paid the Company $12.7 million , committed to future performance milestone payments totaling up to $13.8 million , and agreed to co-fund Quell development costs starting in 2019. 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. In recent years, the Company has suffered recurring losses from operations and negative cash flows from operating activities. At September 30, 2018 , the Company had an accumulated deficit of $188.2 million . The Company held cash and cash equivalents of $7.5 million as of September 30, 2018 . The Company believes that these resources, together with the cash to be generated from expected product sales and the potential achievement of additional development milestones under the Collaboration with GSK, will be sufficient to meet its projected operating requirements into the second quarter of 2019 . The Company continues to face significant challenges and uncertainties and, as a result, the Company’s available capital resources may be consumed more rapidly than currently expected due to (a) decreases in sales of the Company’s products and the uncertainty of future revenues; (b) delays in achieving Quell development milestones and related payments from GSK; (c) changes the Company may make to the business that affect ongoing operating expenses; (d) changes the Company may make in its business strategy; (e) regulatory developments or inquiries affecting the Company’s existing products and products under development; (f) changes the Company may make in its research and development spending plans; and (g) other items affecting the Company’s forecasted level of expenditures and use of cash resources. Accordingly, the Company may need to raise additional funds to support its operating and capital needs in the second quarter of 2019 and beyond. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the one-year period from the date of issuance of these financial statements. 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, or through additional credit lines or other debt financing sources. 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. 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. If any of these events occurs, the Company’s ability to achieve its development and commercialization goals may be adversely affected. Unaudited Interim Financial Statements The accompanying unaudited balance sheet as of September 30, 2018 , unaudited statements of operations for the quarters and nine months ended September 30, 2018 and 2017 and the unaudited statements of cash flows for the nine months ended September 30, 2018 and 2017 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 8 of Regulation S-X. The accompanying balance sheet as of December 31, 2017 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. In the opinion of management, the financial statements include all normal and recurring adjustments considered necessary for a fair presentation of the Company’s financial position and operating results. Operating results for the quarter and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or the SEC, on February 8, 2018 (File No. 001-33351), or the Company’s 2017 Form 10-K. Revenues Revenues include product sales, net of estimated returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for product transferred. Revenue is recognized when contractual performance obligations have been satisfied and control of the product has been transferred to the customer. In most cases, the Company has a single product delivery performance obligation. Product returns are estimated based on historical data and evaluation of current information. Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance. The Company adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, the Company discontinued revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns. Generally, the new standard results in earlier recognition of revenues. Upon adoption of ASU 2014-09, the Company recorded a decrease in accumulated deficit of $297,858 as detailed in the following table: As reported After adoption December 31, 2017 ASU 2014-09 January 1, 2018 Accounts receivable, net $ 1,049,329 $ 1,353,499 $ 2,402,828 Prepaid expenses and other current assets $ 1,867,803 $ (583,491 ) $ 1,284,312 Total current assets $ 9,103,374 $ 770,008 $ 9,873,382 Accrued product returns $ 666,375 $ 1,292,181 $ 1,958,556 Deferred revenue $ 820,031 $ (820,031 ) $ — Total current liabilities $ 4,581,835 $ 472,150 $ 5,053,985 Accumulated deficit $ (191,338,054 ) $ 297,858 $ (191,040,196 ) Total stockholders’ equity $ 5,017,389 $ 297,858 $ 5,315,247 The following table summarizes the effects of adopting ASU 2014-09 on the Company's statement of operations for the quarter ended September 30, 2018 : As reported Adjustments Amounts under prior GAAP Revenues $ 3,666,780 $ 96,333 $ 3,763,113 Cost of revenues $ 1,821,111 $ 46,237 $ 1,867,348 Gross profit $ 1,845,669 $ 50,096 $ 1,895,765 Net income applicable to common stockholders $ 1,086,058 $ 50,096 $ 1,136,154 Net income per common share applicable to common stockholders, Basic $ 0.15 $ — $ 0.15 Diluted $ 0.08 $ — $ 0.08 The following table summarizes the effects of adopting ASU 2014-09 on the Company's statement of operations for the nine months ended September 30, 2018 : As reported Adjustments Amounts under prior GAAP Revenues $ 12,361,338 $ 376,198 $ 12,737,536 Cost of revenues $ 6,726,675 $ 311,723 $ 7,038,398 Gross profit $ 5,634,663 $ 64,475 $ 5,699,138 Net income applicable to common stockholders $ 2,826,238 $ 64,475 $ 2,890,713 Net income per common share applicable to common stockholders, Basic $ 0.40 $ 0.01 $ 0.41 Diluted $ 0.20 $ 0.01 $ 0.21 The following table summarizes the effects of adopting ASU 2014-09 on the Company's balance sheet as of September 30, 2018 : As reported Adjustments Amounts under prior GAAP Accounts receivable, net $ 1,615,842 $ (211,222 ) $ 1,404,620 Prepaid expenses and other current assets $ 827,823 $ 271,767 $ 1,099,590 Total current assets $ 12,571,603 $ 60,545 $ 12,632,148 Accrued product returns $ 1,105,960 $ (525,000 ) $ 580,960 Deferred revenue $ — $ 818,929 $ 818,929 Total current liabilities $ 4,178,601 $ 293,929 $ 4,472,530 Accumulated deficit $ (188,213,958 ) $ (233,384 ) $ (188,447,342 ) Total stockholders’ equity $ 8,859,725 $ (233,384 ) $ 8,626,341 Adoption of the standard had no impact on total net cash from or used in operating, investing, or financing activities within the statements of cash flows. Accounts receivable are recorded net of the allowance for doubtful accounts which represents the Company’s best estimate of credit losses. Allowance for doubtful accounts was $25,000 as of September 30, 2018 and December 31, 2017 . One customer accounted for 16% and two customers accounted for 28% of total revenue in the quarter and nine months ended September 30, 2018 , respectively. One customer accounted for 21% and 18% of total revenue for the quarter and nine months ended September 30, 2017 , respectively. Customers that individually account for greater than 10% of accounts receivables totaled 28% and 66% as of September 30, 2018 and December 31, 2017 , respectively. Collaboration In January 2018, the Company entered into the Collaboration with GSK. The Company sold to GSK the rights to the Company’s Quell technology for markets outside of the United States, including certain patents and related assets, and agreed to complete development milestones for the next-generation Quell technology. The Company retained exclusive ownership of Quell technology in the U.S. market. GSK agreed to payments totaling up to $26.5 million , of which $5.0 million was paid at closing, $7.7 million was paid upon attainment of product development milestones, and the balance will be due upon achievement of defined development and commercialization milestones. In addition, the parties agreed to jointly fund Quell technology development during an initial period starting in 2019. The Company recognized Collaboration income net of costs, within Other income in the Statement of Operations of $3,750,000 and $12,255,704 , for the quarter and nine months ended September 30, 2018 , respectively. Stock-based Compensation Total compensation cost related to non-vested awards not yet recognized at September 30, 2018 was $263,734 . The total compensation costs are expected to be recognized over a weighted-average period of 2.1 years. 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. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires that lessees recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. The provisions of this guidance are effective for annual periods beginning after December 31, 2018, and for interim periods therein. The Company is in the process of evaluating the new standard and assessing the impact ASU 2016-02 will have on the Company’s financial statements and which adoption method will be used. |
Comprehensive Loss
Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Comprehensive Loss | Comprehensive Income (Loss) For the quarters and nine months ended September 30, 2018 and 2017 , the Company had no components of other comprehensive income or loss other than net income (loss) itself. |
Net Loss Per Common Share
Net Loss Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | 3. Net Income (Loss) Per Common Share Basic and dilutive net income (loss) per common share were as follows: Quarters Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income (loss) applicable to common stockholders $ 1,086,058 $ (6,342,081 ) $ 2,826,238 $ (16,853,959 ) Weighted average number of common shares outstanding, basic 7,365,038 2,036,117 7,016,789 1,450,237 Dilutive convertible preferred stock 6,584,674 — 6,847,164 — Weighted average number of common shares outstanding, dilutive 13,949,712 2,036,117 13,863,953 1,450,237 Net income (loss) per common share applicable to common stockholders, basic $ 0.15 $ (3.11 ) $ 0.40 $ (11.62 ) Net income (loss) per common share applicable to common stockholders, diluted $ 0.08 $ (3.11 ) $ 0.20 $ (11.62 ) Shares underlying the following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net income (loss) per common share because their effect was anti-dilutive for each of the periods presented: Quarters Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Options 474,148 100,237 426,166 98,642 Warrants 459,375 1,206,504 459,375 3,469,612 Convertible preferred stock — 6,422,034 — 4,328,089 Total 933,523 7,728,775 885,541 7,896,343 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Quarters Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income (loss) applicable to common stockholders $ 1,086,058 $ (6,342,081 ) $ 2,826,238 $ (16,853,959 ) Weighted average number of common shares outstanding, basic 7,365,038 2,036,117 7,016,789 1,450,237 Dilutive convertible preferred stock 6,584,674 — 6,847,164 — Weighted average number of common shares outstanding, dilutive 13,949,712 2,036,117 13,863,953 1,450,237 Net income (loss) per common share applicable to common stockholders, basic $ 0.15 $ (3.11 ) $ 0.40 $ (11.62 ) Net income (loss) per common share applicable to common stockholders, diluted $ 0.08 $ (3.11 ) $ 0.20 $ (11.62 ) |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: September 30, 2018 December 31, 2017 Purchased components $ 1,702,525 $ 505,293 Finished goods 894,815 1,637,268 $ 2,597,340 $ 2,142,561 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses and Compensation Accrued expenses and compensation consist of the following: September 30, 2018 December 31, 2017 Accrued compensation $ 578,167 $ 786,184 Technology fees 450,000 450,000 Professional services 285,000 603,000 Warranty reserve 159,727 127,361 Advertising and promotion 139,900 160,800 Other 308,612 234,779 $ 1,921,406 $ 2,362,124 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease In June 2018, the Company extended the lease on its Woburn, Massachusetts manufacturing facilities (the “Woburn Lease”) through September 2025. As of September 2018, the Woburn Lease has a monthly base rent of $13,918 and a 5 -year extension option. In September 2014, the Company entered into a 7 -year operating lease agreement with one 5 -year extension option for its principal corporate office and product development location in Waltham, Massachusetts (the “Waltham Lease”). The term of the Waltham Lease commenced on February 20, 2015 and includes fixed payment obligations that escalate over the initial lease term. Average monthly base rent under the 7 -year lease is $37,788 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 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 September 30, 2018 Using September 30, 2018 Quoted Prices in Significant Other Significant Assets: Cash equivalents $ 4,893,447 $ 4,893,447 $ — $ — Total $ 4,893,447 $ 4,893,447 $ — $ — Fair Value Measurements at December 31, 2017 Using December 31, 2017 Quoted Prices in Significant Other Significant Assets: Cash equivalents $ 1,744,965 $ 1,744,965 $ — $ — Total $ 1,744,965 $ 1,744,965 $ — $ — |
Credit Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility The Company is party to a Loan and Security Agreement, as amended (the “Credit Facility”), with a bank. As of September 30, 2018 , the Credit Facility permitted the Company to borrow up to $2.5 million on a revolving basis. The Credit Facility was amended most recently in January 2018 and expires in January 2019 . Amounts borrowed under the Credit Facility will bear interest equal to the prime rate plus 0.5% . Any borrowings under the Credit Facility will be collateralized by the Company’s cash, accounts receivable, inventory, and equipment. The Credit Facility includes traditional lending and reporting covenants. These include certain financial covenants applicable to liquidity that are to be maintained by the Company. As of September 30, 2018 , the Company was in compliance with these covenants and had not borrowed any funds under the Credit Facility. However, $226,731 of the amount under the Credit Facility is restricted to support letters of credit issued in favor of the Company's landlords. Consequently, the amount available for borrowing under the Credit Facility as of September 30, 2018 was approximately $2.3 million . |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred stock and convertible preferred stock consist of the following: September 30, 2018 December 31, 2017 Preferred stock, $0.001 par value; 5,000,000 shares authorized at September 30, 2018 and December 31, 2017; no shares issued and outstanding at September 30, 2018 and December 31, 2017 $ — $ — Series B convertible preferred stock, $0.001 par value; 147,000 shares designated at September 30, 2018 and December 31, 2017; 500 shares issued and outstanding at September 30, 2018 and December 31, 2017 $ 1 $ 1 Series D convertible preferred stock, $0.001 par value; 21,300 shares designated at September 30, 2018 and December 31, 2017; 14,052.93 shares issued and outstanding at September 30, 2018 and December 31, 2017 $ 14 $ 14 Series E convertible preferred stock, $0.001 par value; 7,000 shares designated at September 30, 2018 and December 31, 2017; 3,260.70 and 7,000 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively $ 3 $ 7 Series F convertible preferred stock, $0.001 par value; 10,621 shares designated at September 30, 2018 and December 31, 2017; zero and 7,927.05 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively $ — $ 8 2018 equity activity In 2018, the Company issued shares of fully vested common stock in partial settlement of management incentive compensation. The 2018 issuance totaled 214,791 shares with a value of $294,264 reflecting the $1.37 closing price of the Company’s common stock as reported on the Nasdaq Capital Market on April 12, 2018. During the nine months ended September 30, 2018 , 3,739.3 shares of the Series E Preferred Stock were converted into a total of 1,421,787 shares of Common Stock. As of September 30, 2018 , 3,260.70 shares of Series E Preferred Stock remained outstanding. During the nine months ended September 30, 2018 , 7,927.05 shares of the Series F Preferred Stock were converted into a total of 3,014,087 shares of Common Stock. As of September 30, 2018 , zero shares of Series F Preferred Stock remained outstanding. |
Reverse Stock Split
Reverse Stock Split | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Reverse Stock Split | Stockholders’ Equity Preferred stock and convertible preferred stock consist of the following: September 30, 2018 December 31, 2017 Preferred stock, $0.001 par value; 5,000,000 shares authorized at September 30, 2018 and December 31, 2017; no shares issued and outstanding at September 30, 2018 and December 31, 2017 $ — $ — Series B convertible preferred stock, $0.001 par value; 147,000 shares designated at September 30, 2018 and December 31, 2017; 500 shares issued and outstanding at September 30, 2018 and December 31, 2017 $ 1 $ 1 Series D convertible preferred stock, $0.001 par value; 21,300 shares designated at September 30, 2018 and December 31, 2017; 14,052.93 shares issued and outstanding at September 30, 2018 and December 31, 2017 $ 14 $ 14 Series E convertible preferred stock, $0.001 par value; 7,000 shares designated at September 30, 2018 and December 31, 2017; 3,260.70 and 7,000 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively $ 3 $ 7 Series F convertible preferred stock, $0.001 par value; 10,621 shares designated at September 30, 2018 and December 31, 2017; zero and 7,927.05 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively $ — $ 8 2018 equity activity In 2018, the Company issued shares of fully vested common stock in partial settlement of management incentive compensation. The 2018 issuance totaled 214,791 shares with a value of $294,264 reflecting the $1.37 closing price of the Company’s common stock as reported on the Nasdaq Capital Market on April 12, 2018. During the nine months ended September 30, 2018 , 3,739.3 shares of the Series E Preferred Stock were converted into a total of 1,421,787 shares of Common Stock. As of September 30, 2018 , 3,260.70 shares of Series E Preferred Stock remained outstanding. During the nine months ended September 30, 2018 , 7,927.05 shares of the Series F Preferred Stock were converted into a total of 3,014,087 shares of Common Stock. As of September 30, 2018 , zero shares of Series F Preferred Stock remained outstanding. |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based Compensation Total compensation cost related to non-vested awards not yet recognized at September 30, 2018 was $263,734 . The total compensation costs are expected to be recognized over a weighted-average period of 2.1 years. |
Our Business-An Overview | Our Business-An Overview NeuroMetrix, Inc., or the Company, is a commercial stage, innovation driven healthcare company combining bioelectrical and digital medicine to address chronic health conditions including chronic pain, sleep disorders, and diabetes. The Company’s lead product is Quell, an over-the-counter wearable therapeutic device for chronic pain. Quell is integrated into a digital health platform that helps patients optimize their therapy and decrease the impact of chronic pain on their quality of life. The Company also markets DPNCheck®, a rapid point-of-care test for diabetic neuropathy, which is the most common long-term complication of Type 2 diabetes. The Company maintains an active research effort. The Company is located in Waltham, Massachusetts and was founded as a spinoff from the Harvard-MIT Division of Health Sciences and Technology in 1996. In January 2018, the Company entered into a collaboration (the "Collaboration") with GlaxoSmithKline ("GSK"). The Collaboration set up a framework for the joint development of the next generation of Quell, recently launched in the United States in September 2018, and the assignment of areas of marketing responsibility. The initial term of the Collaboration runs through 2020. Through September 30, 2018 , GSK has paid the Company $12.7 million , committed to future performance milestone payments totaling up to $13.8 million , and agreed to co-fund Quell development costs starting in 2019. 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. In recent years, the Company has suffered recurring losses from operations and negative cash flows from operating activities. At September 30, 2018 , the Company had an accumulated deficit of $188.2 million . The Company held cash and cash equivalents of $7.5 million as of September 30, 2018 . The Company believes that these resources, together with the cash to be generated from expected product sales and the potential achievement of additional development milestones under the Collaboration with GSK, will be sufficient to meet its projected operating requirements into the second quarter of 2019 . The Company continues to face significant challenges and uncertainties and, as a result, the Company’s available capital resources may be consumed more rapidly than currently expected due to (a) decreases in sales of the Company’s products and the uncertainty of future revenues; (b) delays in achieving Quell development milestones and related payments from GSK; (c) changes the Company may make to the business that affect ongoing operating expenses; (d) changes the Company may make in its business strategy; (e) regulatory developments or inquiries affecting the Company’s existing products and products under development; (f) changes the Company may make in its research and development spending plans; and (g) other items affecting the Company’s forecasted level of expenditures and use of cash resources. Accordingly, the Company may need to raise additional funds to support its operating and capital needs in the second quarter of 2019 and beyond. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the one-year period from the date of issuance of these financial statements. 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, or through additional credit lines or other debt financing sources. 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. 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. If any of these events occurs, the Company’s ability to achieve its development and commercialization goals may be adversely affected. |
Unaudited Interim Financial Statements | Unaudited Interim Financial Statements The accompanying unaudited balance sheet as of September 30, 2018 , unaudited statements of operations for the quarters and nine months ended September 30, 2018 and 2017 and the unaudited statements of cash flows for the nine months ended September 30, 2018 and 2017 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 8 of Regulation S-X. The accompanying balance sheet as of December 31, 2017 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. In the opinion of management, the financial statements include all normal and recurring adjustments considered necessary for a fair presentation of the Company’s financial position and operating results. Operating results for the quarter and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or the SEC, on February 8, 2018 (File No. 001-33351), or the Company’s 2017 Form 10-K. |
Revenues | Revenues Revenues include product sales, net of estimated returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for product transferred. Revenue is recognized when contractual performance obligations have been satisfied and control of the product has been transferred to the customer. In most cases, the Company has a single product delivery performance obligation. Product returns are estimated based on historical data and evaluation of current information. Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance. The Company adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, the Company discontinued revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns. Generally, the new standard results in earlier recognition of revenues. Upon adoption of ASU 2014-09, the Company recorded a decrease in accumulated deficit of $297,858 as detailed in the following table: As reported After adoption December 31, 2017 ASU 2014-09 January 1, 2018 Accounts receivable, net $ 1,049,329 $ 1,353,499 $ 2,402,828 Prepaid expenses and other current assets $ 1,867,803 $ (583,491 ) $ 1,284,312 Total current assets $ 9,103,374 $ 770,008 $ 9,873,382 Accrued product returns $ 666,375 $ 1,292,181 $ 1,958,556 Deferred revenue $ 820,031 $ (820,031 ) $ — Total current liabilities $ 4,581,835 $ 472,150 $ 5,053,985 Accumulated deficit $ (191,338,054 ) $ 297,858 $ (191,040,196 ) Total stockholders’ equity $ 5,017,389 $ 297,858 $ 5,315,247 The following table summarizes the effects of adopting ASU 2014-09 on the Company's statement of operations for the quarter ended September 30, 2018 : As reported Adjustments Amounts under prior GAAP Revenues $ 3,666,780 $ 96,333 $ 3,763,113 Cost of revenues $ 1,821,111 $ 46,237 $ 1,867,348 Gross profit $ 1,845,669 $ 50,096 $ 1,895,765 Net income applicable to common stockholders $ 1,086,058 $ 50,096 $ 1,136,154 Net income per common share applicable to common stockholders, Basic $ 0.15 $ — $ 0.15 Diluted $ 0.08 $ — $ 0.08 The following table summarizes the effects of adopting ASU 2014-09 on the Company's statement of operations for the nine months ended September 30, 2018 : As reported Adjustments Amounts under prior GAAP Revenues $ 12,361,338 $ 376,198 $ 12,737,536 Cost of revenues $ 6,726,675 $ 311,723 $ 7,038,398 Gross profit $ 5,634,663 $ 64,475 $ 5,699,138 Net income applicable to common stockholders $ 2,826,238 $ 64,475 $ 2,890,713 Net income per common share applicable to common stockholders, Basic $ 0.40 $ 0.01 $ 0.41 Diluted $ 0.20 $ 0.01 $ 0.21 The following table summarizes the effects of adopting ASU 2014-09 on the Company's balance sheet as of September 30, 2018 : As reported Adjustments Amounts under prior GAAP Accounts receivable, net $ 1,615,842 $ (211,222 ) $ 1,404,620 Prepaid expenses and other current assets $ 827,823 $ 271,767 $ 1,099,590 Total current assets $ 12,571,603 $ 60,545 $ 12,632,148 Accrued product returns $ 1,105,960 $ (525,000 ) $ 580,960 Deferred revenue $ — $ 818,929 $ 818,929 Total current liabilities $ 4,178,601 $ 293,929 $ 4,472,530 Accumulated deficit $ (188,213,958 ) $ (233,384 ) $ (188,447,342 ) Total stockholders’ equity $ 8,859,725 $ (233,384 ) $ 8,626,341 Adoption of the standard had no impact on total net cash from or used in operating, investing, or financing activities within the statements of cash flows. Accounts receivable are recorded net of the allowance for doubtful accounts which represents the Company’s best estimate of credit losses. Allowance for doubtful accounts was $25,000 as of September 30, 2018 and December 31, 2017 . One customer accounted for 16% and two customers accounted for 28% of total revenue in the quarter and nine months ended September 30, 2018 , respectively. One customer accounted for 21% and 18% of total revenue for the quarter and nine months ended September 30, 2017 , respectively. Customers that individually account for greater than 10% of accounts receivables totaled 28% and 66% as of September 30, 2018 and December 31, 2017 , respectively. Collaboration In January 2018, the Company entered into the Collaboration with GSK. The Company sold to GSK the rights to the Company’s Quell technology for markets outside of the United States, including certain patents and related assets, and agreed to complete development milestones for the next-generation Quell technology. The Company retained exclusive ownership of Quell technology in the U.S. market. GSK agreed to payments totaling up to $26.5 million , of which $5.0 million was paid at closing, $7.7 million was paid upon attainment of product development milestones, and the balance will be due upon achievement of defined development and commercialization milestones. In addition, the parties agreed to jointly fund Quell technology development during an initial period starting in 2019. The Company recognized Collaboration income net of costs, within Other income in the Statement of Operations of $3,750,000 and $12,255,704 , for the quarter and nine months ended September 30, 2018 , respectively. |
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. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires that lessees recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. The provisions of this guidance are effective for annual periods beginning after December 31, 2018, and for interim periods therein. The Company is in the process of evaluating the new standard and assessing the impact ASU 2016-02 will have on the Company’s financial statements and which adoption method will be used. |
Business and Basis of Present_3
Business and Basis of Presentation Adoption of ASU 2014-09 (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ASU 2014-09 Impact [Table Text Block] | Upon adoption of ASU 2014-09, the Company recorded a decrease in accumulated deficit of $297,858 as detailed in the following table: As reported After adoption December 31, 2017 ASU 2014-09 January 1, 2018 Accounts receivable, net $ 1,049,329 $ 1,353,499 $ 2,402,828 Prepaid expenses and other current assets $ 1,867,803 $ (583,491 ) $ 1,284,312 Total current assets $ 9,103,374 $ 770,008 $ 9,873,382 Accrued product returns $ 666,375 $ 1,292,181 $ 1,958,556 Deferred revenue $ 820,031 $ (820,031 ) $ — Total current liabilities $ 4,581,835 $ 472,150 $ 5,053,985 Accumulated deficit $ (191,338,054 ) $ 297,858 $ (191,040,196 ) Total stockholders’ equity $ 5,017,389 $ 297,858 $ 5,315,247 The following table summarizes the effects of adopting ASU 2014-09 on the Company's statement of operations for the quarter ended September 30, 2018 : As reported Adjustments Amounts under prior GAAP Revenues $ 3,666,780 $ 96,333 $ 3,763,113 Cost of revenues $ 1,821,111 $ 46,237 $ 1,867,348 Gross profit $ 1,845,669 $ 50,096 $ 1,895,765 Net income applicable to common stockholders $ 1,086,058 $ 50,096 $ 1,136,154 Net income per common share applicable to common stockholders, Basic $ 0.15 $ — $ 0.15 Diluted $ 0.08 $ — $ 0.08 The following table summarizes the effects of adopting ASU 2014-09 on the Company's statement of operations for the nine months ended September 30, 2018 : As reported Adjustments Amounts under prior GAAP Revenues $ 12,361,338 $ 376,198 $ 12,737,536 Cost of revenues $ 6,726,675 $ 311,723 $ 7,038,398 Gross profit $ 5,634,663 $ 64,475 $ 5,699,138 Net income applicable to common stockholders $ 2,826,238 $ 64,475 $ 2,890,713 Net income per common share applicable to common stockholders, Basic $ 0.40 $ 0.01 $ 0.41 Diluted $ 0.20 $ 0.01 $ 0.21 The following table summarizes the effects of adopting ASU 2014-09 on the Company's balance sheet as of September 30, 2018 : As reported Adjustments Amounts under prior GAAP Accounts receivable, net $ 1,615,842 $ (211,222 ) $ 1,404,620 Prepaid expenses and other current assets $ 827,823 $ 271,767 $ 1,099,590 Total current assets $ 12,571,603 $ 60,545 $ 12,632,148 Accrued product returns $ 1,105,960 $ (525,000 ) $ 580,960 Deferred revenue $ — $ 818,929 $ 818,929 Total current liabilities $ 4,178,601 $ 293,929 $ 4,472,530 Accumulated deficit $ (188,213,958 ) $ (233,384 ) $ (188,447,342 ) Total stockholders’ equity $ 8,859,725 $ (233,384 ) $ 8,626,341 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Quarters Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income (loss) applicable to common stockholders $ 1,086,058 $ (6,342,081 ) $ 2,826,238 $ (16,853,959 ) Weighted average number of common shares outstanding, basic 7,365,038 2,036,117 7,016,789 1,450,237 Dilutive convertible preferred stock 6,584,674 — 6,847,164 — Weighted average number of common shares outstanding, dilutive 13,949,712 2,036,117 13,863,953 1,450,237 Net income (loss) per common share applicable to common stockholders, basic $ 0.15 $ (3.11 ) $ 0.40 $ (11.62 ) Net income (loss) per common share applicable to common stockholders, diluted $ 0.08 $ (3.11 ) $ 0.20 $ (11.62 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Quarters Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Options 474,148 100,237 426,166 98,642 Warrants 459,375 1,206,504 459,375 3,469,612 Convertible preferred stock — 6,422,034 — 4,328,089 Total 933,523 7,728,775 885,541 7,896,343 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following: September 30, 2018 December 31, 2017 Purchased components $ 1,702,525 $ 505,293 Finished goods 894,815 1,637,268 $ 2,597,340 $ 2,142,561 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses and compensation consist of the following: September 30, 2018 December 31, 2017 Accrued compensation $ 578,167 $ 786,184 Technology fees 450,000 450,000 Professional services 285,000 603,000 Warranty reserve 159,727 127,361 Advertising and promotion 139,900 160,800 Other 308,612 234,779 $ 1,921,406 $ 2,362,124 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at September 30, 2018 Using September 30, 2018 Quoted Prices in Significant Other Significant Assets: Cash equivalents $ 4,893,447 $ 4,893,447 $ — $ — Total $ 4,893,447 $ 4,893,447 $ — $ — Fair Value Measurements at December 31, 2017 Using December 31, 2017 Quoted Prices in Significant Other Significant Assets: Cash equivalents $ 1,744,965 $ 1,744,965 $ — $ — Total $ 1,744,965 $ 1,744,965 $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Preferred stock and convertible preferred stock | Preferred stock and convertible preferred stock consist of the following: September 30, 2018 December 31, 2017 Preferred stock, $0.001 par value; 5,000,000 shares authorized at September 30, 2018 and December 31, 2017; no shares issued and outstanding at September 30, 2018 and December 31, 2017 $ — $ — Series B convertible preferred stock, $0.001 par value; 147,000 shares designated at September 30, 2018 and December 31, 2017; 500 shares issued and outstanding at September 30, 2018 and December 31, 2017 $ 1 $ 1 Series D convertible preferred stock, $0.001 par value; 21,300 shares designated at September 30, 2018 and December 31, 2017; 14,052.93 shares issued and outstanding at September 30, 2018 and December 31, 2017 $ 14 $ 14 Series E convertible preferred stock, $0.001 par value; 7,000 shares designated at September 30, 2018 and December 31, 2017; 3,260.70 and 7,000 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively $ 3 $ 7 Series F convertible preferred stock, $0.001 par value; 10,621 shares designated at September 30, 2018 and December 31, 2017; zero and 7,927.05 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively $ — $ 8 |
Business and Basis of Present_4
Business and Basis of Presentation (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |
Organization And Basis Of Presentation [Line Items] | ||||||||
Proceeds from Collaborators | $ 12,700,000 | |||||||
Noninterest Income | $ 3,750,000 | $ 0 | 12,255,704 | $ 0 | ||||
Revenues | 3,666,780 | 3,546,680 | 12,361,338 | 12,162,861 | ||||
Accounts receivable, net | 1,615,842 | 1,615,842 | $ 1,049,329 | |||||
Net proceeds from issuance of stock and warrants | 9,254 | 9,569,800 | ||||||
Accumulated deficit | 188,213,958 | 188,213,958 | 191,338,054 | |||||
Cash and cash equivalents | 7,530,598 | 3,969,218 | 7,530,598 | 3,969,218 | 4,043,681 | $ 3,949,135 | ||
Deferred revenue | 0 | 0 | 820,031 | |||||
Allowance for doubtful accounts | 25,000 | 25,000 | 25,000 | |||||
Prepaid expenses and other current assets | 827,823 | 827,823 | 1,867,803 | |||||
Assets, Current | 12,571,603 | 12,571,603 | 9,103,374 | |||||
Accrued Sales Return provisions | 1,105,960 | 1,105,960 | 666,375 | |||||
Liabilities, Current | 4,178,601 | 4,178,601 | 4,581,835 | |||||
Stockholders' Equity Attributable to Parent | 8,859,725 | 8,859,725 | $ 5,017,389 | |||||
Cost of revenues | 1,821,111 | 2,040,997 | 6,726,675 | 7,378,001 | ||||
Gross Profit | 1,845,669 | 1,505,683 | 5,634,663 | 4,784,860 | ||||
Net Income (Loss) Available to Common Stockholders, Diluted | 1,086,058 | $ (6,342,081) | 2,826,238 | $ (16,853,959) | ||||
Compensation cost not yet recognized | $ 263,734 | $ 263,734 | ||||||
Compensation cost not yet recognized, period for recognition | 2 years 23 days | |||||||
Earnings Per Share, Basic | $ 0.15 | $ (3.11) | $ 0.40 | $ (11.62) | ||||
Earnings Per Share, Diluted | $ 0.08 | $ (3.11) | $ 0.20 | $ (11.62) | ||||
Maximum | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Future Milestone Payments Receivable [Line Items] | $ 13,800,000 | |||||||
Collaborator Payments Receivable | $ 26,500,000 | |||||||
One Customer [Member] | Revenue | Customer Concentration Risk | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Concentration risk, percentage | 16.00% | 21.00% | 18.00% | |||||
Customers [Member] | Accounts Receivable | Customer Concentration Risk | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Concentration risk, percentage | 28.00% | 66.00% | ||||||
Two Customers | Revenue | Customer Concentration Risk | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Concentration risk, percentage | 28.00% | |||||||
At Closing [Member] | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Proceeds from Collaborators | $ 5,000,000 | |||||||
Attainment Of Milestone [Member] | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Proceeds from Collaborators | $ 0 | |||||||
Accounting Standards Update 2014-09 [Member] | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Accounts receivable, net | $ 2,402,828 | |||||||
Accumulated deficit | 191,040,196 | |||||||
Deferred revenue | 0 | |||||||
Prepaid expenses and other current assets | 1,284,312 | |||||||
Assets, Current | 9,873,382 | |||||||
Accrued Sales Return provisions | 1,958,556 | |||||||
Liabilities, Current | 5,053,985 | |||||||
Stockholders' Equity Attributable to Parent | $ 5,315,247 | |||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Revenues | $ 3,763,113 | 12,737,536 | ||||||
Accounts receivable, net | 1,404,620 | 1,404,620 | ||||||
Accumulated deficit | 188,447,342 | 188,447,342 | ||||||
Deferred revenue | 818,929 | 818,929 | ||||||
Prepaid expenses and other current assets | 1,099,590 | 1,099,590 | ||||||
Assets, Current | 12,632,148 | 12,632,148 | ||||||
Accrued Sales Return provisions | 580,960 | 580,960 | ||||||
Liabilities, Current | 4,472,530 | 4,472,530 | ||||||
Stockholders' Equity Attributable to Parent | 8,626,341 | 8,626,341 | ||||||
Cost of revenues | 1,867,348 | 7,038,398 | ||||||
Gross Profit | 1,895,765 | 5,699,138 | ||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 1,136,154 | $ 2,890,713 | ||||||
Earnings Per Share, Basic | $ 0 | $ 0.41 | ||||||
Earnings Per Share, Diluted | $ 0 | $ 0.21 | ||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Revenues | $ 96,333 | $ 376,198 | ||||||
Accounts receivable, net | (211,222) | (211,222) | $ 1,353,499 | |||||
Accumulated deficit | 233,384 | 233,384 | (297,858) | |||||
Deferred revenue | 818,929 | 818,929 | (820,031) | |||||
Prepaid expenses and other current assets | 271,767 | 271,767 | (583,491) | |||||
Assets, Current | 60,545 | 60,545 | 770,008 | |||||
Accrued Sales Return provisions | (525,000) | (525,000) | 1,292,181 | |||||
Liabilities, Current | 293,929 | 293,929 | 472,150 | |||||
Stockholders' Equity Attributable to Parent | (233,384) | (233,384) | $ 297,858 | |||||
Cost of revenues | 46,237 | 311,723 | ||||||
Gross Profit | 50,096 | 64,475 | ||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 50,096 | $ 64,475 | ||||||
Earnings Per Share, Basic | $ 0 | $ 0.01 | ||||||
Earnings Per Share, Diluted | $ 0 | $ 0.01 |
Comprehensive Loss (Detail)
Comprehensive Loss (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity [Abstract] | ||||
Other comprehensive income (loss), net of tax | $ 0 | $ 0 | $ 0 | $ 0 |
Net Loss Per Common Share - Sch
Net Loss Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities excluded from the computation of earnings per share (in shares) | 933,523 | 7,728,775 | 885,541 | 7,896,343 |
Convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities excluded from the computation of earnings per share (in shares) | 0 | 6,422,034 | 0 | 4,328,089 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities excluded from the computation of earnings per share (in shares) | 459,375 | 1,206,504 | 459,375 | 3,469,612 |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities excluded from the computation of earnings per share (in shares) | 474,148 | 100,237 | 426,166 | 98,642 |
Net Loss Per Common Share Sched
Net Loss Per Common Share Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 1,086,058 | $ (6,342,081) | $ 2,826,238 | $ (16,853,959) |
Weighted Average Number of Shares Outstanding, Basic | 7,365,038 | 2,036,117 | 7,016,789 | 1,450,237 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 6,584,674 | 0 | 6,847,164 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 13,949,712 | 2,036,117 | 13,863,953 | 1,450,237 |
Earnings Per Share, Basic | $ 0.15 | $ (3.11) | $ 0.40 | $ (11.62) |
Earnings Per Share, Diluted | $ 0.08 | $ (3.11) | $ 0.20 | $ (11.62) |
Inventories (Detail)
Inventories (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Purchased components | $ 1,702,525 | $ 505,293 |
Finished goods | 894,815 | 1,637,268 |
Inventories | $ 2,597,340 | $ 2,142,561 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued Compensation | $ 578,167 | $ 786,184 |
Sales return allowance | 1,105,960 | 666,375 |
Technology fees | 450,000 | 450,000 |
Professional services | 285,000 | 603,000 |
Warranty reserve | 159,727 | 127,361 |
Accrued Advertising | 139,900 | 160,800 |
Other | 308,612 | 234,779 |
Accrued expenses | $ 1,921,406 | $ 2,362,124 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | Sep. 01, 2018USD ($) | Feb. 20, 2015USD ($) | Sep. 30, 2014extension_option | Sep. 01, 2014 |
Waltham Lease [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease, term of contract | 7 years | |||
Operating lease, number of extension options | extension_option | 1 | |||
Operating lease, renewal term | 5 years | |||
Monthly base rent | $ 37,788 | |||
Woburn Lease [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease, renewal term | 5 years | |||
Monthly base rent | $ 13,918 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash equivalents | $ 4,893,447 | $ 1,744,965 |
Assets, Fair Value Disclosure | 4,893,447 | 1,744,965 |
Level 1 | ||
Assets | ||
Cash equivalents | 4,893,447 | 1,744,965 |
Assets, Fair Value Disclosure | 4,893,447 | 1,744,965 |
Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Credit Facility (Detail)
Credit Facility (Detail) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Line of Credit Facility [Line Items] | |
Revolving credit facility, maximum borrowing capacity | $ 2,500,000 |
Credit facility expiration date | Jan. 15, 2019 |
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 - Preferre
Stockholders' Equity - Preferred Stock and Convertible Preferred Stock (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Non-Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Value of preferred stock issued | $ 0 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series B Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Value of preferred stock issued | $ 1 | $ 1 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 500 | 500 |
Preferred stock, shares outstanding (in shares) | 500 | 500 |
Preferred stock, shares designated (in shares) | 147,000 | 147,000 |
Series D Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Value of preferred stock issued | $ 14 | $ 14 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 14,052.93 | 14,052.93 |
Preferred stock, shares outstanding (in shares) | 14,052.93 | 14,052.93 |
Preferred stock, shares designated (in shares) | 21,300 | 21,300 |
Series E Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Value of preferred stock issued | $ 3 | $ 7 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 3,260.7 | 7,000 |
Preferred stock, shares outstanding (in shares) | 3,260.7 | 7,000 |
Preferred stock, shares designated (in shares) | 7,000 | 7,000 |
Series F Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Value of preferred stock issued | $ 0 | $ 8 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 | 7,927.05 |
Preferred stock, shares outstanding (in shares) | 0 | 7,927.05 |
Preferred stock, shares designated (in shares) | 10,621 | 10,621 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Apr. 12, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||||
Common Stock, Shares, Issued | 7,365,038 | 2,706,066 | ||
Common Stock, Value, Issued | $ 737 | $ 271 | ||
Net proceeds from issuance of stock and warrants | $ 9,254 | $ 9,569,800 | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
Compensation cost not yet recognized | $ 263,734 | |||
Compensation cost not yet recognized, period for recognition | 2 years 23 days | |||
Series D Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 14,052.93 | 14,052.93 | ||
Series E Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 3,260.7 | 7,000 | ||
Shares converted (in shares) | 3,739.3 | |||
Series F Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 0 | 7,927.05 | ||
Shares converted (in shares) | (7,927.05) | |||
Common Stock | Series E Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares issued upon conversion (in shares) | (1,421,787) | |||
Common Stock | Series F Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares issued upon conversion (in shares) | (3,014,087) | |||
Management Incentive [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares, Issued | 214,791 | |||
Common Stock, Value, Issued | $ 294,264 | |||
Stock Price (in dollars per share) | $ 1.37 |
Reverse Stock Split (Details)
Reverse Stock Split (Details) - shares | Sep. 30, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||
Shares outstanding (in shares) | 7,365,038 | 2,706,066 |