Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 06, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TearLab Corp | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 33,641,302 | ||
Entity Public Float | $148,336,236 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 1299139 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $16,338 | $37,778 |
Accounts receivable, net | 2,480 | 3,524 |
Inventory. | 2,986 | 885 |
Prepaid expenses | 884 | 689 |
Other current assets | 6 | 10 |
Total current assets | 22,694 | 42,886 |
Fixed assets, net | 4,504 | 3,429 |
Patents and trademarks, net | 80 | 108 |
Intangible assets, net | 3,596 | 3,494 |
Other non-current assets | 157 | 40 |
Total assets | 31,031 | 49,957 |
Current liabilities | ||
Accounts payable | 2,202 | 631 |
Accrued liabilities | 3,765 | 3,844 |
Deferred rent | 174 | 67 |
Obligations under warrants | 256 | 4,047 |
Total current liabilities | 6,397 | 8,589 |
Exchange right | 250 | |
Commitments and contingencies (Note 8) | ||
Stockholders' equity | ||
Preferred Stock, $0.001 par value, 10,000,000 authorized, none outstanding | 0 | 0 |
Common Stock, $0.001 par value, 65,000,000 authorized, 33,641,302 issued and outstanding at December 31, 2014 and 65,000,000 authorized, 33,288,701 issued and outstanding at December 31, 2013 | 34 | 33 |
Additional paid-in capital | 483,909 | 477,172 |
Accumulated deficit | -459,559 | -435,837 |
Total stockholders' equity | 24,384 | 41,368 |
Total liabilities and stockholders' equity | $31,031 | $49,957 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, authorized | 65,000,000 | 65,000,000 |
Common stock, issued | 33,641,302 | 33,288,701 |
Common stock, outstanding | 33,641,302 | 33,288,701 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Product sales | $16,086,000 | $12,593,000 | $3,587,000 |
Reader equipment rentals | 3,632,000 | 2,052,000 | 373,000 |
Total revenue | 19,718,000 | 14,645,000 | 3,960,000 |
Costs and operating expenses | |||
Cost of goods sold (excluding amortization of intangibles) | 8,804,000 | 7,607,000 | 2,211,000 |
Cost of goods sold b Reader equipment depreciation | 1,292,000 | 539,000 | 84,000 |
Amortization of intangibles assets | 1,462,000 | 1,215,000 | 1,215,000 |
General and administrative | 13,555,000 | 8,942,000 | 4,770,000 |
Clinical, regulatory and research & development | 2,792,000 | 1,095,000 | 2,241,000 |
Sales and marketing | 16,817,000 | 13,021,000 | 5,471,000 |
Total costs and operating expenses | 44,722,000 | 32,419,000 | 15,992,000 |
Loss from operations | -25,004,000 | -17,774,000 | -12,032,000 |
Other income (expenses) | |||
Interest income | 28,000 | 35,000 | 30,000 |
Changes in fair value of warrant obligations | 1,175,000 | -11,105,000 | -7,296,000 |
Other, net | 79,000 | -146,000 | -14,000 |
Total other income (expenses), net | 1,282,000 | -11,216,000 | -7,280,000 |
Net loss and comprehensive loss | ($23,722,000) | ($28,990,000) | ($19,312,000) |
Weighted average shares outstanding b basic (in Shares) | 33,578,820 | 30,759,305 | 25,490,186 |
Net loss per common share b basic (in Dollars per share) | ($0.71) | ($0.94) | ($0.76) |
Weighted average shares outstanding b diluted (in Shares) | 33,717,344 | 30,759,305 | 25,490,186 |
Net loss per common share b diluted (in Dollars per share) | ($0.74) | ($0.94) | ($0.76) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance, December 31, 2011 at Dec. 31, 2011 | $20,000 | $393,035,000 | ($387,535,000) | $5,520,000 |
Balance, December 31, 2011 (in Shares) at Dec. 31, 2011 | 20,414,993 | |||
Stock-based compensation | 1,441,000 | 1,441,000 | ||
Warrants exercised | 2,000 | 7,274,000 | 7,276,000 | |
Warrants exercised (in Shares) | 1,765,497 | |||
Shares issued in public and registered direct offerings | 6,000 | 20,339,000 | 20,345,000 | |
Shares issued in public and registered direct offerings (in Shares) | 5,950,000 | |||
Restricted stock units issued | 1,000 | 1,181,000 | 1,182,000 | |
Restricted stock units issued (in Shares) | 316,779 | |||
Issue costs of equity financings | -1,718,000 | -1,718,000 | ||
Options exercised | 110,000 | 110,000 | ||
Options exercised (in Shares) | 294,384 | 294,384 | ||
Net loss and comprehensive loss | -19,312,000 | -19,312,000 | ||
Balance at Dec. 31, 2012 | 29,000 | 421,662,000 | -406,847,000 | 14,844,000 |
Balance (in Shares) at Dec. 31, 2012 | 28,741,653 | |||
Stock-based compensation | 3,738,000 | 3,738,000 | ||
Warrants exercised | 1,000 | 13,988,000 | 13,989,000 | |
Warrants exercised (in Shares) | 1,375,194 | |||
Shares issued in public and registered direct offerings | 3,000 | 40,362,000 | 40,365,000 | |
Shares issued in public and registered direct offerings (in Shares) | 2,990,000 | |||
Issue costs of equity financings | -3,036,000 | -3,036,000 | ||
Options exercised | 458,000 | 458,000 | ||
Options exercised (in Shares) | 181,854 | 181,854 | ||
Net loss and comprehensive loss | -28,990,000 | -28,990,000 | ||
Balance at Dec. 31, 2013 | 33,000 | 477,172,000 | -435,837,000 | 41,368,000 |
Balance (in Shares) at Dec. 31, 2013 | 33,288,701 | |||
Stock-based compensation | 3,824,000 | 3,824,000 | ||
Warrants exercised | 1,000 | 2,615,000 | 2,616,000 | |
Warrants exercised (in Shares) | 246,936 | |||
Options exercised | 184,000 | 184,000 | ||
Options exercised (in Shares) | 57,763 | 57,763 | ||
Issuance of employee purchase plan shares | 114,000 | 114,000 | ||
Issuance of employee purchase plan shares (in Shares) | 47,902 | |||
Net loss and comprehensive loss | -23,722,000 | -23,722,000 | ||
Balance at Dec. 31, 2014 | $34,000 | $483,909,000 | ($459,559,000) | $24,384,000 |
Balance (in Shares) at Dec. 31, 2014 | 33,641,302 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
OPERATING ACTIVITIES | |||
Net loss for the year | ($23,722,000) | ($28,990,000) | ($19,312,000) |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Stock-based compensation | 3,824,000 | 3,738,000 | 1,441,000 |
Depreciation of fixed assets | 1,448,000 | 624,000 | 137,000 |
Amortization of patents and trademarks | 28,000 | 28,000 | 28,000 |
Amortization of intangible assets | 1,462,000 | 1,215,000 | 1,215,000 |
Non-cash bonuses paid to management in common shares | 1,182,000 | ||
Change in fair value of warrant obligation | -1,175,000 | 11,105,000 | 7,296,000 |
Loss on disposal of fixed assets | 7,000 | ||
Net change in working capital and non-current asset balances related to operations | -37,000 | -961,000 | -787,000 |
Cash used in operating activities | -18,172,000 | -13,234,000 | -8,800,000 |
INVESTING ACTIVITIES | |||
Additions to fixed assets, net of proceeds | -2,416,000 | -2,905,000 | -569,000 |
Cash paid for business acquisition | -1,400,000 | ||
Cash used in investing activities | -3,816,000 | -2,905,000 | -569,000 |
FINANCING ACTIVITIES | |||
Proceeds from the exercise of common stock options | 184,000 | 458,000 | 110,000 |
Proceeds from the issuance of employee stock purchase plan shares | 114,000 | ||
Proceeds from issuance of shares in a public offering | 40,365,000 | 12,420,000 | |
Proceeds from issuance of shares in an underwritten registered financing | 7,925,000 | ||
Proceeds from the exercise of warrants | 693,000 | 3,262,000 | |
Proceeds from issuance of exchange rights | 250,000 | ||
Costs of issuance of shares and warrants in public offering, private placement and registered direct financings | -3,036,000 | -1,718,000 | |
Cash provided by financing activities | 548,000 | 38,480,000 | 21,999,000 |
Net increase in cash and cash equivalents during the year | -21,440,000 | 22,341,000 | 12,630,000 |
Cash and cash equivalents, beginning of year | 37,778,000 | 15,437,000 | 2,807,000 |
Cash and cash equivalents, end of year | $16,338,000 | $37,778,000 | $15,437,000 |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Basis of Presentation |
TearLab Corp. ("TearLab" or the "Company"), a Delaware corporation, is an ophthalmic device company that is commercializing a proprietary in vitro diagnostic tear testing platform, the TearLab® test for dry eye disease, or DED, which enables eye care practitioners to test for highly sensitive and specific biomarkers using nanoliters of tear film at the point-of-care and operates in one business segment. | |
The accompanying consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated on consolidation. | |
The accompanying consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. However, the Company has sustained substantial losses of $23.7 million, $29.0 million, and $19.3 million for the years ended December 31, 2014, 2013, and 2012, respectively. The Company's working capital surplus at December 31, 2014 is $16.3 million. Based on the Company's annual operating plan approved by the Board of Directors, management believes the Company's existing cash and cash equivalents of $16.3 million at December 31, 2014 combined with the recent senior term loan agreement providing us with access of up to $35.0 million in gross proceeds including $15.0 million which was made available to us on March 4, 2015 and anticipated cash flows provided by sales of its products in calendar year 2015 will be sufficient to fund its cash requirements through at least December 31, 2015. | |
A successful transition to attaining profitable operations is dependent upon obtaining sufficient financing to fund the Company’s planned expenses and achieving a level of revenues adequate to support the Company’s cost structure. If events or circumstances occur such that we do not meet our operating plan during the first half the 2015, we may be required during the third quarter of 2015 to reduce operating expenses and reduce the planned levels of inventory and fixed assets which could have an adverse impact on our ability to achieve our intended business objectives. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Significant Accounting Policies [Text Block] | 2. SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
Use of estimates | |||||||||||||||||
The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (''GAAP'') requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. The principal areas of judgment relate to revenue returns reserve, allowance for doubtful accounts, impairment of long-lived and intangible assets, and the fair value of stock options and warrants. | |||||||||||||||||
Concentrations and risk | |||||||||||||||||
Credit risk | |||||||||||||||||
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. | |||||||||||||||||
During the 2014, 2013 and 2012 fiscal years, the Company derived its revenue from the sale of the TearLab® Osmolarity product. There were no customers representing revenue in excess of 10% in the years ended December 31, 2014, 2013 or 2012. | |||||||||||||||||
Currently, there are two suppliers for the reader and pen components of the TearLab® Osmolarity System and one supplier for the test cards. | |||||||||||||||||
Fair value of financial instruments | |||||||||||||||||
The Company's financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. The carrying amounts of financial instruments such as cash equivalents, accounts receivable, accounts payable and accrued expenses approximate the related fair values due to the short-term maturities of these instruments. | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
The Company considers all highly liquid investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. | |||||||||||||||||
Accounts receivable and allowance for doubtful accounts | |||||||||||||||||
The Company's accounts receivable consist primarily of trade receivables from customers and are generally unsecured and due within 30 days. The carrying value of accounts receivable approximates their fair value due to their short term nature. The Company evaluates the collectability of its accounts receivable based on a combination of factors and calculates an allowance for doubtful accounts based on the estimated proportion of aged receivables deemed uncollectable consistent with policy Expected credit losses related to trade receivables are recorded as an allowance for doubtful accounts. The allowance for doubtful accounts is charged to sales and marketing expense and accounts receivable are written off as uncollectible and deducted from the allowance after appropriate collection efforts have been exhausted. The allowance for doubtful accounts was $424,000 and $415,000 at December 31, 2014 and 2013, respectively. Charges for bad debt expense have been $121,000, $377,000, $10,000 for the years ended December 31, 2014, 2013 and 2012 respectively. | |||||||||||||||||
Inventory | |||||||||||||||||
Inventory is recorded at the lower of cost (based on first in, first out basis) or market and consists of purchased finished goods. Inventory is periodically reviewed for evidence of slow-moving or obsolete items, and the estimated reserve is based on management's reviews of inventories on hand, compared to estimated future usage and sales, reviewing product shelf-life, and assumptions about the likelihood of obsolescence. Once written down, the adjustments are considered permanent and are not reversed until the related inventory is sold. | |||||||||||||||||
Fixed assets | |||||||||||||||||
Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years. Maintenance and repairs are expensed as incurred. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. | |||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||
The Company periodically assesses the carrying value of intangible and other long-lived assets, and whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. The assets are considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment, which includes consideration of the following events or changes in circumstances: | |||||||||||||||||
● | the asset's ability to continue to generate income from operations and positive cash flow in future periods; | ||||||||||||||||
● | loss of legal ownership or title to the asset; | ||||||||||||||||
● | significant changes in the Company's strategic business objectives and utilization of the asset(s); and | ||||||||||||||||
● | the impact of significant negative industry or economic trends. | ||||||||||||||||
If the assets are considered to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets. Fair value is determined by a combination of data from third party sources and the application of discounted cash flow models to project cash flows from the asset. In addition, the Company bases the useful lives and related amortization or depreciation expense on an estimate of the period that the assets will generate revenues or otherwise be used. The Company also periodically reviews the lives assigned to long-lived assets to ensure that the initial estimates do not exceed any revised estimated periods from which the Company expects to realize cash flows from its assets. | |||||||||||||||||
Patents and trademarks | |||||||||||||||||
Patents and trademarks are recorded at historical cost and are amortized using the straight-line method over their estimated useful lives, not to exceed 15 years. | |||||||||||||||||
Intangible Assets | |||||||||||||||||
Intangible assets are recorded at historical cost and are amortized using the straight line-line method over their estimated useful life of 10 years. | |||||||||||||||||
Product Warranties | |||||||||||||||||
The Company generally provides a one year warranty on its TearLab® Osmolarity System and related disposables. The Company accrues the estimated cost of this warranty at the time revenue is recognized and charges warranty expense to cost of goods sold. Warranty reserves are established based on historical experience with failure rates and the number of systems covered by warranty. Warranty reserves are depleted as systems and disposables are replaced. The Company reviews warranty reserves quarterly and, if necessary, make adjustments. The activities in the warranty reserve are as follows (in thousands): | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance at beginning of year | $ | 180 | $ | 107 | $ | 36 | |||||||||||
Charges to cost of goods sold | 79 | 271 | 196 | ||||||||||||||
Costs applied to liability | (138 | ) | (198 | ) | (125 | ) | |||||||||||
Balance at end of year | $ | 121 | $ | 180 | $ | 107 | |||||||||||
Income Taxes | |||||||||||||||||
A deferred tax asset or liability is determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. The Company provides a valuation allowance against net deferred tax assets unless, based upon the available evidence, it is more likely than not that the deferred tax assets will be realized. | |||||||||||||||||
Revenue recognition | |||||||||||||||||
Revenue is recognized when all four of the following criteria are met: (i) persuasive evidence that an arrangement exists; (ii) delivery of the products has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. The Company records revenue when all of its obligations are completed, which is generally upon shipment of the Company's products. Amounts received in excess of revenue recognizable are deferred. | |||||||||||||||||
Our revenues are primarily derived from the sale of disposable test cards. We sell our proprietary TearLab® Osmolarity System and related test cards to our customers, who are primarily eye care professionals, for use in osmolarity testing procedures. Our products are generally shipped from our primary distribution and warehousing operations facility located in San Diego, California. The Company’s sales are currently direct to customers in the United States, Canada and the United Kingdom and to distributors in South America, Europe and Asia. | |||||||||||||||||
The Company enters into contracts where revenue is derived either from agreements whereby the customer is provided the right to use the TearLab® Osmolarity System (reader equipment) at no separate cost to the customer in consideration for a minimum purchase commitment of disposables over the related contract term (referred to as either “Use Agreements”, “Masters Agreements” or “Flex Agreements”), or from agreements with sales of multiple deliverables, such as the reader equipment and disposable test cards (referred to as “Purchase Agreements”). | |||||||||||||||||
Purchase commitments for Use Agreements and Flex Agreements are expressed in the agreement for a specified period of time (generally one to three years), and the purchase commitment for Masters Agreements is implied for large physician practices with an expectation of purchasing certain levels of test cards. The Company recovers the cost of providing the reader equipment in the amount charged for disposables. These agreements are treated as operating leases as collectibility of the minimum lease payments is not reasonably predictable at the outset of the arrangement. Accordingly, revenue is recognized over the defined contract term as disposable test cards are shipped. When reader equipment is placed with a customer at no separate cost, the Company retains title to the equipment and it remains capitalized on the Company’s consolidated balance sheet as equipment classified within fixed assets, net. The equipment is depreciated on a straight-line basis once shipped to a customer location over its estimated useful life and depreciation expense is included in Cost of Goods Sold within the consolidated statement of operations and comprehensive loss. | |||||||||||||||||
Revenue recognition for Purchase Agreements with multiple deliverables is based on the individual units of accounting determined to exist in the contract. A delivered item is considered a separate unit of accounting when the delivered item has value to the customer on a stand-alone basis. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. Considering that test cards are essential to the operation of a TearLab reader, there is no alternative vendor for the test cards and no indication that a secondary market for the TearLab readers is established, the deliverables under the contracts entered into during 2014 and 2013 do not meet criteria for separation under the multiple-element arrangements guidance. Consideration is allocated at the inception of the contract to all deliverables based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence (VSOE) of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence exists, the Company uses its best estimate of the selling price for the deliverable. The Company recognizes revenue for each of the elements only when it determines that all applicable recognition criteria have been met. | |||||||||||||||||
Although the Company has a no return policy for its products, the Company has established a return reserve for product sales that contain an implicit right of return. The Company reserves for estimated returns or refunds by reducing revenues at the time of shipment based on historical experience. The reserve of $77,000 and $173,000 as of December 31, 2014 and December 31, 2013, respectively, has been recorded as a reduction of revenue and is included in accounts receivable. | |||||||||||||||||
Cost of goods sold | |||||||||||||||||
Cost of goods sold includes the costs the Company incurs for the purchase of the TearLab® Systems sold and related freight and shipping costs, fees related to warehousing and logistics inventory management associated with conducting business and depreciation of reader equipment. The Company recorded $1,109,000, $912,000 and $255,000 in shipping and handling fees for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Clinical, regulatory and research & development costs | |||||||||||||||||
Clinical and regulatory costs attributable to the performance of contract services are recognized as an expense as the services are performed. Non-refundable, up-front fees paid in connection with these contracted services are deferred and recognized as an expense over the estimated term of the related contract. | |||||||||||||||||
Stock-based compensation | |||||||||||||||||
The Company accounts for stock-based compensation expense for its employees in accordance with US GAAP guidance related to stock-based compensation. Under this guidance, stock-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as an expense ratably over the requisite service period of the award. The Company uses the Black-Scholes Merton option pricing model for determining the fair value for all its awards and will recognize compensation cost on a straight-line basis over the awards' vesting periods. | |||||||||||||||||
Advertising Costs | |||||||||||||||||
Advertising costs are expensed as incurred. Total advertising costs for each of the years ended December 31, 2014, 2013 and 2012 were $0.3 million, $0.4 million and $0.3 million, respectively. | |||||||||||||||||
Warrant liabilities | |||||||||||||||||
The Company issued several rounds of warrants related to various debt and equity transactions which occurred in 2011. The Company accounts for its warrants issued in accordance with the US GAAP accounting guidance under Accounting Standards Codification (ASC) 815 applicable to derivative instruments, which requires every derivative instrument within its scope to be recorded on the balance sheet as either an asset or liability measured at its fair value, with changes in fair value recognized in earnings. Based on this guidance, the Company determined that the Company's warrants do not meet the criteria for classification as equity. Accordingly, the Company classified the warrants as current liabilities. The warrants are subject to remeasurement at each balance sheet date with any change in fair value recognized as a component of other income (expense), in the statements of operations and comprehensive loss. Warrants are also remeasured at fair value immediately prior to being exercised, and the resulting fair value is reclassed into additional paid-in capital, net of any applicable exercise proceeds. The Company estimated the fair value of these warrants at the respective balance sheet dates using the Black-Scholes Merton option pricing model as described in the stock-based compensation section above, based on the estimated market value of the underlying common stock at the valuation measurement date, the remaining contractual term of the warrant, risk-free interest rates and expected dividends on and expected volatility of the price of the underlying common stock. There is a moderate degree of subjectivity involved when using option pricing models to estimate warrant liability and the assumptions used in the Black-Scholes Merton option pricing model are moderately judgmental. | |||||||||||||||||
Foreign currency transactions | |||||||||||||||||
The Company's functional and reporting currency is the U.S. dollar. The assets and liabilities of the Company's Canadian operations are maintained in U.S. dollars. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the consolidated balance sheet dates, and non-monetary assets and liabilities are translated at exchange rates in effect on the date of the transaction. Revenue and expenses are translated into U.S. dollars at average exchange rates prevailing during the year. Resulting exchange gains (losses) of: ($35,000), ($131,000) and ($15,000) are included in other income (expense) in the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Geographic information | |||||||||||||||||
The following table provides geographic information related to the Company's revenues based on the geographic location which we deliver the product. (in thousands): | |||||||||||||||||
United States | Canada | Rest of World | Total | ||||||||||||||
31-Dec-14 | |||||||||||||||||
Revenues | $ | 18,589 | $ | 200 | $ | 929 | $ | 19,718 | |||||||||
31-Dec-13 | |||||||||||||||||
Revenues | $ | 13,844 | $ | 121 | $ | 680 | $ | 14,645 | |||||||||
Comprehensive loss | |||||||||||||||||
Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) generally includes unrealized gains or losses on the Company's marketable securities and foreign currency translation adjustments. In all the periods presented, the Company's comprehensive loss equaled net loss for the period. | |||||||||||||||||
Net loss per share | |||||||||||||||||
Basic earnings per share (''EPS'') excludes dilutive securities and is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted and the resulting additional shares are dilutive because their inclusion decreases the amount of EPS. | |||||||||||||||||
The following are potentially dilutive securities which have not been used in the calculation of diluted loss per share as they are anti-dilutive (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock options | 6,363 | 5,537 | 4,100 | ||||||||||||||
Warrants | 74 | 599 | 2,183 | ||||||||||||||
Total | 6,437 | 6,136 | 6,283 | ||||||||||||||
The following table is a reconciliation of the weighted average shares outstanding used for basic and diluted loss per share: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Weighted average shares outstanding - Basic | 33,578,820 | 30,759,305 | 25,490,186 | ||||||||||||||
Dilutive potential common shares | 138,524 | - | - | ||||||||||||||
Weighted average shares outstanding - Diluted | 33,717,344 | 30,759,305 | 25,490,186 | ||||||||||||||
Recent accounting pronouncements | |||||||||||||||||
In May 2014, the Financial Accountings Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | |||||||||||||||||
In August 2014, the Financial Accountings Standards Board issued guidance which requires management to assess an entity’s ability to continue as a going concern and to provide related disclosures in certain circumstances. Under the new guidance, disclosures are required when conditions give rise to substantial doubt about an entity’s ability to continue as a going concern within one year from the financial statement issuance date. The guidance is effective for annual periods ending after December 15, 2016, and all annual and interim periods thereafter. Early application is permitted. The adoption of this guidance will not have any impact on the Company’s financial position and results of operations and, as this time, the Company does not expect any impact on its disclosures. |
Note_3_Balance_Sheet_Details
Note 3 - Balance Sheet Details | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Supplemental Balance Sheet Disclosures [Text Block] | 3. BALANCE SHEET DETAILS | ||||||||
Accounts receivable | |||||||||
(in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
Trade receivables | $ | 2,904 | $ | 3,939 | |||||
Allowance for doubtful accounts | (424 | ) | (415 | ) | |||||
$ | 2,480 | $ | 3,524 | ||||||
Inventory | |||||||||
(in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished goods | $ | 2,990 | $ | 899 | |||||
Inventory reserves | (4 | ) | (14 | ) | |||||
$ | 2,986 | $ | 885 | ||||||
The Company evaluates inventory for estimated excess quantities and obsolescence, based on expected future sales levels and projections of future demand, with the excess inventory provided for. In addition, the Company assesses the impact of changing technology and market conditions. The Company has entered into a long-term purchase commitment to buy the test cards from MiniFAB. The purchase commitment contains required minimum annual purchases. As part of our consideration of excess or obsolete inventory, the Company considers future annual minimum purchases, estimated future usage and the expiry dating of the cards in its analysis of any inventory reserve needed. The usage of the minimum purchase commitment is predicated upon increases in revenues from TearLab products as compared to 2014 and prior years. | |||||||||
Prepaid expenses | |||||||||
(in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
Prepaid trade shows | $ | 177 | $ | 162 | |||||
Prepaid insurance | 301 | 227 | |||||||
Manufacturing deposits | 182 | 104 | |||||||
Subscriptions | 82 | 86 | |||||||
Other fees and services | 142 | 110 | |||||||
$ | 884 | $ | 689 | ||||||
Fixed Assets | |||||||||
(in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
Furniture and office equipment | $ | 267 | $ | 221 | |||||
Leasehold improvements | 51 | 47 | |||||||
Computer equipment and software | 819 | 386 | |||||||
Capitalized TearLab equipment readers | 5,655 | 3,640 | |||||||
Medical equipment | 426 | 401 | |||||||
7,218 | 4,695 | ||||||||
Accumulated depreciation | (2,714 | ) | (1,266 | ) | |||||
$ | 4,504 | $ | 3,429 | ||||||
Depreciation expense was $1,448,000, $624,000, and $137,000, during the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
Patents and trademarks | |||||||||
(in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
Patents | $ | 236 | $ | 236 | |||||
Trademarks | 32 | 32 | |||||||
268 | 268 | ||||||||
Accumulated amortization | (188 | ) | (160 | ) | |||||
$ | 80 | $ | 108 | ||||||
Amortization expense was $28,000, $28,000, and $28,000 during the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
These patents and trademarks are amortized, using the straight-line method, over an estimated useful life of 10 years from the date of approval of the patents and trademarks. | |||||||||
Estimated aggregate amortization expense for patents and trademarks at December 31, 2014 is as follows (in thousands): | |||||||||
2015 | $ | 28 | |||||||
2016 | 28 | ||||||||
2017 | 24 | ||||||||
Total | $ | 80 | |||||||
Accrued liabilities | |||||||||
(in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
Due to professionals | $ | 787 | $ | 616 | |||||
Due to employees and directors | 1,589 | 1,503 | |||||||
Goods received but not yet invoiced | 17 | 207 | |||||||
Sales and use tax liabilities | 221 | 527 | |||||||
Royalty liability | 330 | 281 | |||||||
Readers and test cards in transit | 0 | 368 | |||||||
Other | 821 | 342 | |||||||
$ | 3,765 | $ | 3,844 | ||||||
Note_4_Intangible_Assets
Note 4 - Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||
Intangible Assets Disclosure [Text Block] | 4. INTANGIBLE ASSETS | ||||||||||||||||
The Company's intangible assets consist of the value of TearLab® Technology acquired in the acquisition of TearLab Research in November 2006 and the value of the OcuHub platform technology acquired in the acquisition of the OcuHub business unit from AOAExcel in March 2014. The TearLab Technology consists of a disposable lab card and card reader, supported by an array of patents and patent applications that are either held or in-licensed by the Company. The TearLab Technology is being amortized using the straight-line method over an estimated useful life of 10 years. The OcuHub platform technology consists of the right to access and commercialize the OcuHub cloud-based technology platform which facilitates an effective and efficient shared care model providing secure connectivity between doctors, patients, institutions and payers. The OcuHub platform technology is being amortized using the straight-line method over an estimated useful life of 5 years. Amortization expense was $1,462,000, $1,215,000, and $1,215,000 during the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||
Intangible assets subject to amortization consist of the following (in thousands): | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | ||||||||||||||
TearLab® technology | $ | 12,172 | $ | 9,892 | $ | 12,172 | $ | 8,678 | |||||||||
OcuHub platform technology | 1,564 | 248 | - | - | |||||||||||||
$ | 13,736 | $ | 10,140 | $ | 12,172 | $ | 8,678 | ||||||||||
Estimated future amortization expense related to intangible assets with finite lives at December 31, 2014 is as follows (in thousands): | |||||||||||||||||
Amortization of intangible assets | |||||||||||||||||
2015 | 1,527 | ||||||||||||||||
2016 | 1,379 | ||||||||||||||||
2017 | 313 | ||||||||||||||||
2018 | 313 | ||||||||||||||||
2019 | 64 | ||||||||||||||||
Total | $ | 3,596 | |||||||||||||||
The Company determined that, as of December 31, 2014, there have been no significant events which may affect the carrying value of its TearLab technology and OcuHub platform technology. However, the Company's prior history of losses and losses incurred during the current fiscal year reflect a potential indication of impairment, thus requiring management to assess whether the Company's intangible assets were impaired as of December 31, 2014. Based on management's estimates of forecasted undiscounted cash flows as of December 31, 2014, the Company concluded that there is no indication of an impairment of the Company's intangible assets. Therefore, no impairment charge was recorded during any of the three years ended December 31, 2014. |
Note_5_Related_Party_Transacti
Note 5 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 5. RELATED PARTY TRANSACTIONS |
On August 20, 2009, the Company entered into a distribution agreement with Science with Vision Inc., pursuant to which Science with Vision obtained exclusive Canadian distribution rights with respect to the Company's products. The Company began selling products through the Canadian distributor in 2010. The Company's chairman of the board of directors and chief executive officer has a material financial interest in Science with Vision. Sales to this distributor for the years ended December 31, 2014, 2013 and 2012 were $0, $0 and $59,000, respectively, and the outstanding accounts receivable balanes due at December 31, 2014, 2013 and 2012 were $0, $0 and $15,000, respectively. On September 3, 2013, the Company and Science with Vision Inc. agreed to terminate the distribution agreement including exclusive distribution rights of TearLab products in Canada. In consideration of the termination agreement, the Company agreed to a one-time payment to Science with Vision Inc. of $200,000 Canadian dollars and a royalty on all sales in Canada of products for which Science with Vision Inc. had exclusive distribution rights. The one-time payment resulted in a charge of $190,000 USD during the year ended December 31, 2013 and is recorded within sales and marketing expense. Royalties are recorded as cost of goods sold in the income statement in the period in which revenue is recognized for the associated products sold. At December 31, 2013 the Company has recorded an accrued liability of $3,000 related to royalties due to Science with Vision which is reported as a current liability. The Company's chairman of the board of directors and chief executive officer has a material financial interest in Science with Vision. |
Note_6_Income_Taxes
Note 6 - Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax Disclosure [Text Block] | 6. INCOME TAXES | ||||||||||||
Geographic sources of loss from continuing operations before income tax are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 22,768 | $ | 28,155 | $ | 19,222 | |||||||
Foreign | 954 | 835 | 90 | ||||||||||
Loss before income taxes | 23,722 | 28,990 | 19,312 | ||||||||||
Significant components of the Company's deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Intangible assets | $ | 446 | $ | 413 | |||||||||
Stock options | 3,120 | 1,955 | |||||||||||
Accruals and other | 848 | 742 | |||||||||||
Net operating loss carry forwards | 21,345 | 14,449 | |||||||||||
25,759 | 17,559 | ||||||||||||
Valuation allowance | (24,971 | ) | (16,244 | ) | |||||||||
Deferred tax asset | 788 | 1,315 | |||||||||||
Deferred tax liability | |||||||||||||
Intangible assets | (788 | ) | (1,315 | ) | |||||||||
Deferred tax liability | (788 | ) | (1,315 | ) | |||||||||
Deferred taxes, net | $ | — | $ | — | |||||||||
The following is a reconciliation of the recovery of income taxes between those that are expected, based on enacted tax rates and laws, to those currently reported (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Loss for the year before income taxes | $ | (23,722 | ) | $ | (28,990 | ) | $ | (19,312 | ) | ||||
Expected recovery of income taxes | (8,064 | ) | (9,856 | ) | (6,759 | ) | |||||||
State income tax, net of federal benefit | (438 | ) | (440 | ) | (1,070 | ) | |||||||
Stock-based compensation | 189 | 204 | 64 | ||||||||||
Warrants | (400 | ) | 3,776 | 2,958 | |||||||||
Non-deductible interest | — | — | — | ||||||||||
Deferred state tax rate adjustment | (151 | ) | 899 | (92 | ) | ||||||||
Expiration of options | - | 3,761 | — | ||||||||||
Adjustment to deferred assets | 47 | 1,138 | 187 | ||||||||||
Non-deductible expenses & other | 90 | 112 | 32 | ||||||||||
Change in valuation allowance | 8,727 | 406 | 4,680 | ||||||||||
Total recovery of income taxes | $ | — | $ | — | $ | — | |||||||
Income taxes are recorded in accordance with authoritative guidance for accounting for income taxes, which requires the recognition of deferred tax assets and liabilities to reflect the future tax consequences of the events that have been recognized in the Company's consolidated financial statements or tax returns. Measurement of the deferred items is based on enacted tax laws. In the event of differences between the financial reporting bases and tax bases of the Company's assets, an assessment regarding the Company ability to realize the future benefits of the deferred tax assets is required. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. Management has considered future taxable income and ongoing tax planning strategies in assessing the need for the valuation allowance. In the event the Company were to determine that it would be able to realize the deferred tax assets in the future in excess of their net recorded amounts, an adjustment to the deferred tax assets would increase the income in the period such determination was made. Likewise, should the Company determine that it would not be able to realize all or part of the net deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to income in the period such determination was made. | |||||||||||||
In July 2006, the “FASB” issued additional guidance which requires the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, the provisions under this guidance also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company adopted the provisions under this guidance on January 1, 2007. The adoption of these provisions had no impact on the Company's consolidated financial position or results of operations. At December 31, 2014 and 2013, the Company has no research and development credits, unrecognized income tax benefits and no material uncertain tax positions. | |||||||||||||
During the year ended December 31, 2012, a change of ownership for tax purposes causing Section 382 restrictions on the utilization of net operating losses occurred. No additional ownership changes are expected to arise through 2014. The ownership change in 2012, while limiting the annual utilization of net operating losses, will not cause the carryforwards generated subsequent to the Company's last ownership change in October 2008 to expire unused. In general, an ownership change, as defined by Section 382, results from transactions increasing ownership of certain stockholders or public groups in the stock of the corporation by more than 50 percentage points over a three-year period. Utilization of net operating loss carryforwards are subject to annual limitations under Section 382 of the Internal Revenue Code of 1986, and similar state provisions whenever an ownership change has occurred. The ownership changes described above will limit the annual amount of net operating loss carryforwards that can be utilized to offset future taxable income. | |||||||||||||
At December 31, 2014, the Company had federal net operating loss carryforwards of approximately $58.4 million, state net operating loss carryforwards of approximately $40.2 million and Canadian net operating loss carryforwards of approximately $12.7 million. The federal net operating loss carryforwards begin to expire in 2017, the state net operating loss carryforwards begin to expire in 2015 and the Canadian net operating loss carryforwards begin to expire in 2015. The federal and state net operating loss carryovers reflected in the deferred tax table above do not include any net operating loss carryover which would expire unutilized solely as a result of 382 limitations arising in connection with the 2008 ownership change. As of December 31, 2014, the Company has approximately $1.5 million of net operating loss carryforwards related to stock option exercises which will result in an increase to additional paid-in capital and a decrease in income taxes payable at the time when the tax loss carryforwards are utilized. | |||||||||||||
The Company's policy is to recognize interest and penalties related to income tax matters in other expense. Because the Company has generated net operating losses since inception for both state and federal purposes, no additional tax liability, penalties or interest have been recognized for balance sheet or income statement purposes as of and for the three years ended December 31, 2014. | |||||||||||||
The Company does not expect a significant change in the amount of its unrecognized tax benefits within the next 12 months. Therefore, it is not expected that the change in the Company's unrecognized tax benefits will have a significant impact on the Company's results of operations or financial position. | |||||||||||||
All of the federal income tax returns for the Company and its subsidiaries remain open since their respective dates of incorporation due to the existence of net operating losses. The Company and its subsidiaries have not been, nor are they currently, under examination by the Internal Revenue Service or the Canada Revenue Agency. | |||||||||||||
State and provincial income tax returns are generally subject to examination for a period of between three and five years after their filing. However, due to the existence of net operating losses, all state income tax returns of the Company and its subsidiaries since their respective dates of incorporation are subject to re-assessment. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. The Company and its subsidiaries have not been, nor are they currently, under examination by any state tax authority. |
Note_7_Commitments_and_Conting
Note 7 - Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | 7. COMMITMENTS AND CONTINGENCIES | ||||
Commitments | |||||
The Company has commitments relating to operating leases recognized on a straight line basis over the term of the lease for rental of office space and equipment from unrelated parties, expiring at various times through June 30, 2018. The total future minimum obligation under these various leases for 2015, 2016, 2017 and 2018 are $389,000, $371,000, $353,000, and $177,000, respectively. Rent expensed under these leases was $344,000, $223,000, and $143,000 for the years ended December 31, 2014, 2013, and 2012, respectively. The Company leases office facilities under an operating lease agreement. The initial term of the lease is five years and includes periodic rent increases and a renewal option. | |||||
On March 12, 2003, TearLab entered into a patent license and royalty agreement with the University of California San Diego to obtain an exclusive license to make, use, sell, offer for sale, and import TearLab technology in development. Starting in 2009, the Company was required to make minimum royalty payments of $35,000 or 5.5% of gross sales per year, whichever is higher. However, if this new technology is combined with existing technology, the maximum royalty payable on the sale of the combined products would be 5.5% of gross sales per year. As the new technology is currently in development, there is no revenue and the minimum royalty payment of $35,000 is applicable. Future minimum royalty payments under this agreement as of December 31, 2014 are approximately as follows (in thousands): | |||||
2015 | 35 | ||||
2016 | 35 | ||||
2017 | 35 | ||||
2018 | 35 | ||||
Thereafter | 315 | ||||
Total | $ | 455 | |||
Effective October 1, 2006, TearLab entered into a patent license and royalty agreement with the University of California San Diego to obtain a second exclusive license to make, use, sell, offer for sale, and import existing TearLab technology. The Company is required to make royalty payments of $35,000 or 5.5% of gross sales per year, whichever is higher. Additionally, the Company is required to pay a royalty of 30% of any sublicense fees it receives prior to receiving FDA approval and 25% of any sub-license fees it receives after FDA approval. The Company incurred fees of $1,088,000, $807,000 and $213,000 under this agreement during the years ended December 31, 2014, 2013 and 2012, respectively. The Company had $330,000 and $243,000 in accrued royalties at December 31, 2014 and 2013, respectively. Future minimum royalty payments under this agreement as of December 31, 2014 are approximately as follows (in thousands): | |||||
2015 | 35 | ||||
2016 | 35 | ||||
2017 | 35 | ||||
2018 | 35 | ||||
Thereafter | 315 | ||||
Total | $ | 455 | |||
On February 23, 2009, the Company entered into an agreement for the manufacturing of its TearLab® reader and pens with a third party manufacturing company. The agreement is in effect for three years after the start of production and can be renewed for one-year. The Company has no minimum commitment. Upon termination or cancellation of the agreement, the Company is liable for inventory and materials remaining at the manufacturer's facilities at 110% of the manufacturer's cost. At December 31, 2014, the manufacturer maintained inventory and materials with a value of approximately $66,000, all of which had been purchased to meet manufacturing requirements of purchase orders issued by the Company. | |||||
On August 1, 2011, the Company, through its subsidiary, TearLab Research, Inc., entered into a manufacturing and development agreement, or the Manufacturing Agreement, with MiniFAB (Aust) Pty Ltd, or MiniFAB. Pursuant to the terms of the Manufacturing Agreement, MiniFAB will manufacture and supply test cards for the Company. The Manufacturing Agreement specifies minimum order quantities that will require the Company to purchase approximately $24.6 million (AUD$30.2 million) in test cards from MiniFAB from inception of the agreement through the end of 2015. The agreement is denominated in AUD$ so the actual amounts paid in USD may vary. The agreement also has annual minimum order commitments under the Manufacturing Agreement. The Company met the annual minimum order commitment for the year ended December 31, 2014 and had no purchase obligation under the Manufacturing Agreement as of December 31, 2014. The Company has a commitment for 2015 of $8.4 million representing a minimum commitment to purchase 3,715,000 test cards. The Manufacturing Agreement has a ten year initial term and may be terminated by either party if the other party is in breach or becomes insolvent. If terminated for any reason other than a default by MiniFAB, the Company will be obligated to pay a termination fee based on the cost of products manufactured by MiniFAB, but not yet invoiced, repayment of capital invested by MiniFAB, less depreciation calculated in accordance with Australian accounting standards, and the expected profit to MiniFAB had the remaining minimum order quantities been purchased by the Company. | |||||
Contingencies | |||||
During the ordinary course of business activities, the Company may be contingently liable for litigation and a party to claims. Currently the Company is not party to any litigation. |
Note_8_Fair_Value_Measurements
Note 8 - Fair Value Measurements | 12 Months Ended | ||
Dec. 31, 2014 | |||
Fair Value Disclosures [Abstract] | |||
Fair Value Disclosures [Text Block] | 8. FAIR VALUE MEASUREMENTS | ||
The Company measures certain assets and liabilities in accordance with authoritative guidance which requires fair value measurements be classified and disclosed in one of the following three categories: | |||
● | Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. | ||
● | Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | ||
● | Level 3: Unobservable inputs are used when little or no market data is available. | ||
As of December 31, 2014 and 2013, assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company did not have any assets or liabilities in Level 1 and Level 2, and no transfers to or from Level 3 of the fair value measurement hierarchy during the years ended December 31, 2014 and 2013. | |||
At December 31, 2014, the Company has a liability for warrants to purchase 219,604 shares of common stock at an exercise price of $1.86 per share valued at $256,000 (Note 10). All warrant liabilities are classified as Level 3 fair value measurements. | |||
The following table provides a reconciliation for all liabilities measured at fair value using significant unobservable inputs (Level 3) for the years endeing December 31, 2014 and 2013 (in thousands): | |||
Fair Value Measurements Using Significant Unobservable Inputs | |||
(Level 3) | |||
Balance of warrant liability at January 1, 2013 | $ | 6,239 | |
Reclass of warrant liability to stockholder’s equity upon exercise | (13,297) | ||
Change in fair value of warrant liability included in other (income) / expense | 11,105 | ||
Balance of warrant liability at December 31, 2013 | $ | 4,047 | |
Fair Value Measurements Using Significant Unobservable Inputs | |||
(Level 3) | |||
Balance of warrant liability at January 1, 2014 | $ | 4,047 | |
Reclass of warrant liability to stockholder’s equity upon exercise | (2,616) | ||
Change in fair value of warrant liability included in other (income) / expense | (1,175) | ||
Balance of warrant liability at December 31, 2014 | $ | 256 | |
Note_9_Capital_Stock
Note 9 - Capital Stock | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | 9. CAPITAL STOCK | ||||||||||||||||
(a) Authorized share capital | |||||||||||||||||
The total number of authorized shares of common stock of the Company is 65,000,000. Each share of common stock has a par value of $0.001 per share. The total number of authorized shares of preferred stock of the Company is 10,000,000. Each share of preferred stock has a par value of $0.001 per share. | |||||||||||||||||
(b) Common stock | |||||||||||||||||
On June 13, 2011, the Company issued 1,629,539 shares of its common stock as well as warrants (''Financing Warrants'') to purchase 109,375 shares of its common stock in consideration of conversion and retirement of the Company's outstanding July and August 2009 debt obligations and related accrued interest in the aggregate amount of $2,149,000 with associated costs of $41,000. The exercise price of the Financing Warrants is $1.60 per common share representing the price per share equal to the closing bid price per share of the Company's common stock on the NASDAQ stock market on July 15, 2009. | |||||||||||||||||
On June 30, 2011, the Company closed a private placement financing in which 3,846,154 shares of common stock and warrants to purchase 3,846,154 shares of common stock for gross proceeds of approximately $7,000,000 were issued, with associated costs of $703,000, of which $303,000 was related to warrants and $400,000 to common shares. Of the gross proceeds $3,549,000 were recorded as share equity and the remaining $3,451,000 was determined to be the value of the warrants issued in the financing. The investors purchased the shares and warrants for $1.82 per unit (each unit consisting of one share and one warrant to purchase shares of common stock). The exercise price of the warrants is $1.86 per share. The warrants are exercisable at any time from the date of issuance until June 30, 2016. During 2014, 304,945 warrants were exercised for gross proceeds of $0. | |||||||||||||||||
On April 16, 2012, the Company closed an underwritten public offering of 3.45 million shares of its common stock at a price to the public of $3.60 per share. The Company received gross proceeds of $12,420,000, with associated costs of $1,194,000. | |||||||||||||||||
On July 18, 2012, the Company closed an underwritten registered direct financing of 2.5 million shares of its common stock at a price of $3.17 per share. The Company received gross proceeds of $7,925,000, with associated costs of $524,000. | |||||||||||||||||
On September 17, 2012 the Company issued 316,779 shares of restricted stock units to its management team as settlement of an outstanding liability for previously accrued bonuses related to achievement of CLIA waiver status. The costs basis of the shares granted was $3.72, the closing price of the Company's stock on the date of grant, for a total value of $1,182,000. The shares were issued in accordance with the Company's amended 2002 Stock Incentive Plan and were fully vested on the date of grant. | |||||||||||||||||
On July 30, 2013, the Company closed an underwritten public offering of 2.99 million shares of its common stock at a price to the public of $13.50 per share. The Company received gross proceeds of $40,365,000, with associated costs of $3,036,000. | |||||||||||||||||
(c) Stock Option Plan | |||||||||||||||||
The Company has a stock option plan, the 2002 Stock Incentive Plan (the "Stock Incentive Plan"), which was most recently amended on June 11, 2014 in order to increase the shares reserved under the Stock Option Plan by 1,000,000. Under the Stock Incentive Plan, up to 6,200,000 options are available for grant to employees, directors and consultants. Options granted under the Stock Incentive Plan may be either incentive stock options or non-statutory stock options. Under the terms of the Stock Incentive Plan, the exercise price per share for an incentive stock option shall not be less than the fair market value of a share of stock on the effective date of grant and the exercise price per share for non-statutory stock options shall not be less than 85% of the fair market value of a share of stock on the date of grant. No option granted to a holder of more than 10% of the Company's common stock shall have an exercise price per share less than 110% of the fair market value of a share of stock on the effective date of grant. | |||||||||||||||||
Options granted are typically service-based options. Generally, options expire 10 years after the date of grant. No incentive stock options granted to a 10% owner optionee shall be exercisable after the expiration of five years after the effective date of grant of such option, no option granted to a prospective employee, prospective consultant or prospective director may become exercisable prior to the date on which such person commences service, and with the exception of an option granted to an officer, director or consultant, no option shall become exercisable at a rate less than 20% per annum over a period of five years from the effective date of grant of such option unless otherwise approved by the Board. Shares issued upon option exercise result in new shares issued by the Company. | |||||||||||||||||
The Company accounts for stock-based compensation under the authoritative guidance which requires that share-based payment transactions with employees be recognized in the financial statements based on their fair value and recognized as compensation expense over the vesting period. The Company uses the Black-Scholes Merton option pricing model to calculate the fair value of the stock options. The weighted-average fair value of stock options granted during the years ended December 31, 2014, 2013 and 2012 was $3.02, $8.96, and $2.93, respectively. | |||||||||||||||||
The following table sets forth the total stock-based compensation expense resulting from stock options and the employee stock purchase plan included in the Company's consolidated statements of consolidated loss (in thousands): | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
General and administrative | $ | 2,437 | $ | 1,837 | $ | 528 | |||||||||||
Clinical and regulatory | 159 | 174 | 375 | ||||||||||||||
Sales and marketing | 1,228 | 1,727 | 538 | ||||||||||||||
Stock-based compensation expense before income taxes | $ | 3,824 | $ | 3,738 | $ | 1,441 | |||||||||||
The estimated fair value of stock options for the periods presented was determined using the Black-Scholes Merton option pricing model with the following weighted-average assumptions: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Volatility | 87 | % | 101 | % | 104 | % | |||||||||||
Weighted average Expected life of options (years) | 5.84 | 5.89 | 5.74 | ||||||||||||||
Risk-free interest rate | 1.57 | % | 1.43 | % | 0.88 | % | |||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
The Company's computation of expected volatility is based on the historical volatility of the Company's common stock over a period of time equal to the expected term of the stock options. Due to the lack of sufficient historical data, the Company's computation of weighted average expected life was estimated using the simplified method as prescribed by the Securities and Exchange Commission. Under this approach, estimated life is calculated to be the mid-point between the vesting date and the end of the contractual period. The risk-free interest rate for an award is based on the U.S. Treasury yield curve with a term equal to the expected life of the award on the date of grant. | |||||||||||||||||
A summary of the options issued during the year ended December 31, 2014 and the total number of options outstanding as of that date and changes since December 31, 2011 are set forth below: | |||||||||||||||||
Number of Options Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding, December 31, 2011 | 3,690,654 | 3.34 | 7.06 | $ | 269,587 | ||||||||||||
Granted | 720,250 | 3.69 | |||||||||||||||
Exercised | (294,384 | ) | 0.37 | ||||||||||||||
Forfeited/cancelled/expired | (17,178 | ) | 10.37 | ||||||||||||||
Outstanding, December 31, 2012 | 4,099,342 | 3.54 | 7.14 | $ | 6,798,973 | ||||||||||||
Granted | 1,837,500 | 9.78 | |||||||||||||||
Exercised | (181,854 | ) | 2.52 | ||||||||||||||
Forfeited/cancelled/expired | (218,193 | ) | 11.07 | ||||||||||||||
Outstanding, December 31, 2013 | 5,536,795 | $ | 4.91 | 6.89 | $ | 27,256,235 | |||||||||||
Granted | 1,412,500 | 4.63 | |||||||||||||||
Exercised | (57,763 | ) | 3.18 | ||||||||||||||
Forfeited/cancelled/expired | (528,406 | ) | 11.1 | ||||||||||||||
Outstanding, December 31, 2014 | 6,363,126 | $ | 4.76 | 6.57 | $ | 2,155,404 | |||||||||||
Vested or expected to vest, December 31, 2014 | 4,523,922 | $ | 4.06 | 5.59 | $ | 2,068,716 | |||||||||||
Exercisable, December 31, 2014 | 3,400,612 | $ | 2.86 | 4.58 | $ | 2,035,262 | |||||||||||
The aggregate intrinsic value at December 31, 2014 represents the total pre-tax intrinsic value, calculated as the difference between the Company's closing stock price on the last trading day of the respective fiscal year and the exercise price, multiplied by the number of shares that would have been received by the option holders if the options that could be exercised had been exercised on such date. | |||||||||||||||||
Net cash proceeds from the exercise of common stock options were $184,000, $458,000 and $110,000 for the years ended December 31, 2014, 2013 and 2012, respectively. No income tax benefit was realized from stock option exercises during the years ended December 31, 2014, 2013 and 2012. The Company presents excess tax benefits from the exercise of stock options, if any, as financing cash flows rather than operating cash flows. | |||||||||||||||||
The total intrinsic value of options exercised was $15,000, $2,038,000, and $923,000 during the years ended December 31, 2014, 2013 and 2012, respectively. The total fair value of stock options vested during the years ended December 31, 2014, 2013, and 2012 was $3,408,903, $720,000 and $530,000, respectively. | |||||||||||||||||
As of December 31, 2014, $8,954,000 of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.22 years. | |||||||||||||||||
As of December 31, 2014, the Company had 212,806 options remaining in the Stock Option Plan available for grant. | |||||||||||||||||
(d) Employee Stock Purchase Plan | |||||||||||||||||
In July 2014, the Company’s Board of Directors adopted the 2014 Employee Stock Purchase Plan, or the ESPP, which was approved by the Company's stockholders in June 2014 at the Company's Annual Meeting of Stockholders. A total of 671,500 shares of the Company’s common stock are reserved for issuance under the plan, which permits eligible employees to purchase common stock at a discount through payroll deductions. | |||||||||||||||||
The price at which stock is purchased under the ESPP is equal to 90% of the fair market value of the common stock on the first or the last day of the offering period, whichever is lower. Generally, each offering under the ESPP will be for a period of six months as determined by the Company's Board of Directors. Employees may invest up to 20% of their gross compensation through payroll deductions. In no event may an employee invest more than $25,000 worth of stock in the plan during each calendar year or more than 5,000 shares per offering period. During the year ended December 31, 2014, the Company received employee contributions totaling $114,000 and issued 47,902 shares of common stock. | |||||||||||||||||
As the ESPP is a compensatory plan as defined by the authoritative guidance for stock compensation, stock-based compensation expense of $36,000 has been recorded during the year ended December 31, 2014. The fair value of each purchase option under the ESPP is estimated at the beginning of each six-month offering period using the Black-Scholes model with the following weighted-average assumptions | |||||||||||||||||
Volatility | 64 | % | |||||||||||||||
Expected life (years) | 0.5 | ||||||||||||||||
Risk-free interest rate | 0.07 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
(e) Warrants | |||||||||||||||||
On June 13, 2011, the Company issued 1,629,539 shares of its common stock as well as warrants (''Financing Warrants'') to purchase 109,375 shares of its common stock in consideration of conversion and retirement of the Company's outstanding July and August 2009 debt obligations in the aggregate amount of $2,149,000 with associated costs of $41,000. The exercise price of the Financing Warrants is $1.60 per common share representing the price per share equal to the closing bid price per share of the Company's common stock on the NASDAQ stock market on July 15, 2009. There were no exercise transactions related to these warrants in 2014. During 2014, no financing warrants were exercised. | |||||||||||||||||
On June 30, 2011, the Company closed a private placement financing in which 3,846,154 shares of common stock and warrants (''2011 Warrants'') to purchase 3,846,154 shares of common stock for gross proceeds of approximately $7,000,000. The investors purchased the shares and warrants for $1.82 per unit (each unit consisting of one share and one warrant to purchase shares of common stock). The exercise price of the warrants is $1.86 per share. The warrants are exercisable at any time from the date of issuance until June 30, 2016. The Company's estimated the fair value of the warrants at the date of issuance using the Black-Scholes Merton option pricing model with a 101% volatility, 5.0 years expected life and a risk-free interest rate of 1.76%. The fair value of $5,518,000 was classified as a current liability as the Company determined that these warrants do not meet the criteria for classification as equity. During 2014, 304,945 warrants were exercised for gross proceeds of $0. | |||||||||||||||||
The Company accounts for the 2011 Warrants in accordance with US GAAP guidance applicable to derivative instruments. The Company determined that the 2011 Warrants do not meet the criteria for classification as equity. Accordingly, the Company classified the 2011 Warrants as current liabilities at December 31, 2014. | |||||||||||||||||
The Company initially allocated the total proceeds received, pursuant to the Securities Purchase Agreement, to the shares of common stock and warrants issued based on their relative fair values. This resulted in an allocation of $3,012,000 of proceeds to warrant liability. Since under the derivative guidance the Company is required to record the derivatives at fair value, the Company therefore estimated the fair value of the warrants on the issuance date to be $5,518,000. Transaction costs associated with the issuance of the warrants of $303,000 were immediately expensed and included as warrant issuance costs in the Company's consolidated statements of comprehensive loss. | |||||||||||||||||
During the year ended December 31, 2014 certain holders of 2011 Warrants exercised 304,945 warrants. The Company received no cash proceeds from these cashless exercises. The Company is required to record the outstanding warrants at fair value at the time of exercise, before moving the fair value into additional paid-in capital, resulting in an adjustment to the warrant obligations, with any gain or loss recorded in earnings of the applicable reporting period. The Company, therefore, estimated the fair value of the exercised 2011 Warrants at their respective exercise dates to be $2,616,000, an increase of $263,000 from the previous value at December 31, 2013 of $2,352,000. The fair value was determined using the Black- Scholes Merton option pricing model and the increase was recorded as an expense in other income (expense) in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2014. | |||||||||||||||||
During the year ended December 31, 2013 certain holders of 2011 Warrants exercised 1,571,136 warrants. The Company received $693,000 in proceeds from these exercises. The Company is required to record the outstanding warrants at fair value at the time of exercise, before moving the fair value into additional paid-in capital, resulting in an adjustment to the warrant obligations, with any gain or loss recorded in earnings of the applicable reporting period. The Company, therefore, estimated the fair value of the exercised 2011 Warrants at their respective exercise dates to be $13,297,000, an increase of $8,620,000 from the previous value at December 31, 2012 of $4,014,000. The fair value was determined using the Black- Scholes Merton option pricing model and the increase was recorded as an expense in other income (expense) in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2013. | |||||||||||||||||
During the year ended December 31, 2012, certain holders of 2011 Warrants exercised 1,750,469 warrants. The Company received $3,256,000 in proceeds from these exercises. The Company estimated the fair value of the exercised 2011 Warrants at their respective exercise dates to be $4,014,000, an increase of $2,668,000 from the previous value at December 31, 2011 of $1,346,000. The fair value was determined using the Black-Scholes Merton option pricing model with the following weighted average assumptions for volatility of 97%, 4.3 years expected life and a risk free rate of 0.85%. This increase was recorded as an expense in other income (expense) in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2012. There were no similar warrant exercises for the year ended December 31, 2011. | |||||||||||||||||
The Company is also required to record the outstanding warrants at fair value at the end of each reporting period, resulting in an adjustment to the warrant obligations, with any gain or loss recorded in earnings of the applicable reporting period. The Company, therefore, estimated the fair value of the remaining warrants as of December 31, 2014 to be $256,000, a decrease of $1,438,000 from the previous value at December 31, 2013. This amount was recorded as a charge to other income (expense) in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2014. | |||||||||||||||||
The estimated fair value of the 2011 Warrants at December 31, 2014 was determined using the Black-Scholes Merton option pricing model with the following weighted average assumptions: | |||||||||||||||||
Volatility | 65 | % | |||||||||||||||
Expected life of Warrants (years) | 1.5 | ||||||||||||||||
Risk-free interest rate | 0.46 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
The fair value of the 2011 warrants is highly sensitive to the changes in the Company's stock price and stock price volatility. | |||||||||||||||||
On June 13, 2011, in connection with the conversion of the notes payable and accrued interest (see Note 6), the Company issued warrants with a life of five years to purchase 109,375 shares of common stock. The exercise price of these warrants is $1.60 per common share representing the price per share equal to the closing bid price per share of the Company's common stock on the NASDAQ stock market on July 15, 2009. The Company recorded $163,000 representing the fair value of the warrants, calculated using the Black-Scholes Merton option pricing model, at the date of the Financing in additional paid-in capital. The value of the warrants was accreted over the term of the Notes until their conversion in June 2011. During the years ended December 31, 2014, 2013 and 2012 certain holders of these warrants exercised 0, 12,813 and 22,500 warrants, with $0, $18,000 and $6,000 in proceeds received from these exercised warrants, respectively. As the estimated fair value of these warrants had been previously accreted over the term on the related Notes, no further accounting of these warrants is required. | |||||||||||||||||
The following table provides activity for the Warrants issued and outstanding during the two years ended December 31, 2014 (in thousands, except weighted average exercise prices): | |||||||||||||||||
Number of warrants outstanding | Weighted average exercise price | ||||||||||||||||
Outstanding, December 31, 2012 | 2,183 | 1.85 | |||||||||||||||
Exercised | (1,584 | ) | 1.86 | ||||||||||||||
Outstanding, December 31, 2013 | 599 | 1.83 | |||||||||||||||
Exercised | (305 | ) | 1.86 | ||||||||||||||
Outstanding, December 31, 2014 | 294 | $ | 1.79 | ||||||||||||||
(f) Exchange Right | |||||||||||||||||
In August 2014, the Company sold membership units in OcuHub LLC, a Delaware limited liability company and a wholly owned subsidiary of TearLab Corporation. The membership units sold generated cash proceeds of $250,000 in exchange for 2% ownership of OcuHub LLC. In connection with the sale of the membership units, the new members received an exchange right allowing the units to be exchanged upon written notice and during a specified exchange window for shares in our common stock. The first available exchange window follows the one year anniversary date of the purchase of membership units. The variable number of shares of common stock provided upon exchange is equal to the initial capital contribution amount received for the membership units sold divided by the closing sales price of TearLab Corporation common stock during the respective exchange window. Due to the exchange right option available to the membership unit holders, the entire loss from continuing operations related to OcuHub LLC of $2,080,000 for the year ended December 31, 2014 has been attributed to TearLab Corporation within the consolidated financial statements. |
Note_10_Consolidated_Statement
Note 10 - Consolidated Statements of Cash Flows | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||
Cash Flow, Supplemental Disclosures [Text Block] | 10. CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
The net change in working capital and non-current asset balances related to operations consists of the following (in thousands): | |||||||||||||
Years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Accounts receivable | $ | 1,044 | $ | (2,650 | ) | $ | (557 | ) | |||||
Due from related parties | - | 15 | (11 | ) | |||||||||
Inventory | (2,101 | ) | 978 | (965 | ) | ||||||||
Prepaid expenses | (166 | ) | (302 | ) | (197 | ) | |||||||
Other current assets | 4 | 50 | (25 | ) | |||||||||
Other non-current assets | (117 | ) | (12 | ) | (27 | ) | |||||||
Accounts payable | 1,340 | (436 | ) | 849 | |||||||||
Accrued liabilities | (147 | ) | 1,329 | 146 | |||||||||
Deferred rent/revenue | 106 | 67 | — | ||||||||||
$ | (37 | ) | $ | (961 | ) | $ | (787 | ) | |||||
The following table lists the non-cash transactions and additional cash flow information (in thousands): | |||||||||||||
Years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Common stock issued in consideration of management bonuses | — | — | 1,182 | ||||||||||
Reclass of warrant liabilities to Stockholders Equity upon cashless exercise of warrants | 2,616 | 13,297 | 4,014 | ||||||||||
Additions to fixed assets | 69 | 526 | — | ||||||||||
There were no interest or income taxes paid for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
Employee Retirement Plan | |||||||||||||
The Company has a 401(k) retirement plan under which all full-time employees may contribute up to 100% of their annual salary, within IRS limits. The Company has not made any contributions to these retirement plan in the years ended December 31, 2014, 2013 and 2012. |
Note_11_Subsequent_Events
Note 11 - Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 11. SUBSEQUENT EVENTS |
On March 4, 2015, the Company executed a term loan agreement with CRG LP and certain of its affiliate funds (“CRG”) as lenders providing the Company with access of up to $35.0 million under the arrangement. The Company received $15.0 million in gross proceeds under the arrangement on March 4, 2015, and additional amounts up to $20.0 million are available to TearLab, at its option, through July 2016 subject to the satisfaction of certain revenue milestones and other borrowing conditions. The agreement has a term of six years and bears interest at 13% per annum, with quarterly payments of interest only for the first four years. At the Company’s option, during the first four years a portion of the interest payments can be deferred and paid together with the principal in the fifth and sixth years. |
Note_12_Quarterly_Financial_Da
Note 12 - Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information [Text Block] | 12. QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
The following tables in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments necessary for the fair presentation of results for the periods presented (in thousands, except per share data): | |||||||||||||||||
Fiscal 2014 Quarter Ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
Revenue(i) | $ | 4,211 | $ | 4,999 | $ | 5,212 | $ | 5,297 | |||||||||
Loss from operations (i) | (5,922 | ) | (5,885 | ) | (6,114 | ) | (7,083 | ) | |||||||||
Net loss (i) | $ | (5,557 | ) | $ | (5,439 | ) | $ | (5,785 | ) | $ | (6,941 | ) | |||||
Weighted average number of shares outstanding basic(i) | 33,550 | 33,585 | 33,589 | 33,591 | |||||||||||||
Net loss per common share basic (i) | $ | (0.17 | ) | $ | (0.16 | ) | $ | (0.17 | ) | $ | (0.21 | ) | |||||
Weighted average number of shares outstanding diluted | 33,732 | 33,721 | 33,712 | 33,662 | |||||||||||||
Net loss per common share diluted (i) | $ | (0.17 | ) | $ | (0.17 | ) | $ | (0.18 | ) | $ | (0.21 | ) | |||||
Fiscal 2013 Quarter Ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
Revenue(i) | $ | 2,475 | $ | 3,525 | $ | 4,207 | $ | 4,438 | |||||||||
Loss from operations (i) | (3,162 | ) | (5,279 | ) | (3,829 | ) | (5,504 | ) | |||||||||
Net loss (i) | $ | (8,574 | ) | $ | (12,025 | ) | $ | (4,240 | ) | $ | (4,151 | ) | |||||
Weighted average number of shares outstanding basic(i) | 28,756 | 29,178 | 31,914 | 33,129 | |||||||||||||
Net loss per common share basic (i) | $ | (0.30 | ) | $ | (0.41 | ) | $ | (0.13 | ) | $ | (0.13 | ) | |||||
Weighted average number of shares outstanding diluted | 28,756 | 29,178 | 31,914 | 33,679 | |||||||||||||
Net loss per common share diluted (i) | $ | (0.30 | ) | $ | (0.41 | ) | $ | (0.13 | ) | $ | (0.17 | ) | |||||
(i) | Net loss per share basic and diluted are computed independently for the quarters presented. Therefore, the sum of the quarterly per share information may not be equal to the annual per share information. Also totals may not add to the financial statements due to rounding. | ||||||||||||||||
Schedule_II_Valuation_and_Qual
Schedule II -- Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
Balance at beginning of period | Provision | Write-off and recoveries | Balance at end of period | ||||||||||||||
(in thousands) | |||||||||||||||||
Fiscal 2012 | |||||||||||||||||
Bad debt reserves | 42 | 10 | (16 | ) | 36 | ||||||||||||
Product warranties | 36 | 196 | (125 | ) | 107 | ||||||||||||
Return reserve | 10 | 102 | (41 | ) | 71 | ||||||||||||
Fiscal 2013 | |||||||||||||||||
Bad debt reserves | 36 | 377 | 2 | 415 | |||||||||||||
Product warranties | 107 | 271 | (198 | ) | 180 | ||||||||||||
Return reserve | 71 | 474 | (372 | ) | 173 | ||||||||||||
Fiscal 2014 | |||||||||||||||||
Bad debt reserves | 415 | 121 | (112 | ) | 424 | ||||||||||||
Product warranties | 180 | 79 | (138 | ) | 121 | ||||||||||||
Return reserve | 173 | 126 | (376 | ) | 77 | ||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of estimates | ||||||||||||||||
The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (''GAAP'') requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. The principal areas of judgment relate to revenue returns reserve, allowance for doubtful accounts, impairment of long-lived and intangible assets, and the fair value of stock options and warrants. | |||||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations and risk | ||||||||||||||||
Credit risk | |||||||||||||||||
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. | |||||||||||||||||
During the 2014, 2013 and 2012 fiscal years, the Company derived its revenue from the sale of the TearLab® Osmolarity product. There were no customers representing revenue in excess of 10% in the years ended December 31, 2014, 2013 or 2012. | |||||||||||||||||
Currently, there are two suppliers for the reader and pen components of the TearLab® Osmolarity System and one supplier for the test cards. | |||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value of financial instruments | ||||||||||||||||
The Company's financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. The carrying amounts of financial instruments such as cash equivalents, accounts receivable, accounts payable and accrued expenses approximate the related fair values due to the short-term maturities of these instruments. | |||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents | ||||||||||||||||
The Company considers all highly liquid investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. | |||||||||||||||||
Receivables, Policy [Policy Text Block] | Accounts receivable and allowance for doubtful accounts | ||||||||||||||||
The Company's accounts receivable consist primarily of trade receivables from customers and are generally unsecured and due within 30 days. The carrying value of accounts receivable approximates their fair value due to their short term nature. The Company evaluates the collectability of its accounts receivable based on a combination of factors and calculates an allowance for doubtful accounts based on the estimated proportion of aged receivables deemed uncollectable consistent with policy Expected credit losses related to trade receivables are recorded as an allowance for doubtful accounts. The allowance for doubtful accounts is charged to sales and marketing expense and accounts receivable are written off as uncollectible and deducted from the allowance after appropriate collection efforts have been exhausted. The allowance for doubtful accounts was $424,000 and $415,000 at December 31, 2014 and 2013, respectively. Charges for bad debt expense have been $121,000, $377,000, $10,000 for the years ended December 31, 2014, 2013 and 2012 respectively. | |||||||||||||||||
Inventory, Policy [Policy Text Block] | Inventory | ||||||||||||||||
Inventory is recorded at the lower of cost (based on first in, first out basis) or market and consists of purchased finished goods. Inventory is periodically reviewed for evidence of slow-moving or obsolete items, and the estimated reserve is based on management's reviews of inventories on hand, compared to estimated future usage and sales, reviewing product shelf-life, and assumptions about the likelihood of obsolescence. Once written down, the adjustments are considered permanent and are not reversed until the related inventory is sold. | |||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Fixed assets | ||||||||||||||||
Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years. Maintenance and repairs are expensed as incurred. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. | |||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of long-lived assets | ||||||||||||||||
The Company periodically assesses the carrying value of intangible and other long-lived assets, and whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. The assets are considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment, which includes consideration of the following events or changes in circumstances: | |||||||||||||||||
● | the asset's ability to continue to generate income from operations and positive cash flow in future periods; | ||||||||||||||||
● | loss of legal ownership or title to the asset; | ||||||||||||||||
● | significant changes in the Company's strategic business objectives and utilization of the asset(s); and | ||||||||||||||||
● | the impact of significant negative industry or economic trends. | ||||||||||||||||
If the assets are considered to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets. Fair value is determined by a combination of data from third party sources and the application of discounted cash flow models to project cash flows from the asset. In addition, the Company bases the useful lives and related amortization or depreciation expense on an estimate of the period that the assets will generate revenues or otherwise be used. The Company also periodically reviews the lives assigned to long-lived assets to ensure that the initial estimates do not exceed any revised estimated periods from which the Company expects to realize cash flows from its assets. | |||||||||||||||||
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Patents and trademarks | ||||||||||||||||
Patents and trademarks are recorded at historical cost and are amortized using the straight-line method over their estimated useful lives, not to exceed 15 years. | |||||||||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets | ||||||||||||||||
Intangible assets are recorded at historical cost and are amortized using the straight line-line method over their estimated useful life of 10 years. | |||||||||||||||||
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties | ||||||||||||||||
The Company generally provides a one year warranty on its TearLab® Osmolarity System and related disposables. The Company accrues the estimated cost of this warranty at the time revenue is recognized and charges warranty expense to cost of goods sold. Warranty reserves are established based on historical experience with failure rates and the number of systems covered by warranty. Warranty reserves are depleted as systems and disposables are replaced. The Company reviews warranty reserves quarterly and, if necessary, make adjustments. The activities in the warranty reserve are as follows (in thousands): | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance at beginning of year | $ | 180 | $ | 107 | $ | 36 | |||||||||||
Charges to cost of goods sold | 79 | 271 | 196 | ||||||||||||||
Costs applied to liability | (138 | ) | (198 | ) | (125 | ) | |||||||||||
Balance at end of year | $ | 121 | $ | 180 | $ | 107 | |||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||||||||||||||||
A deferred tax asset or liability is determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. The Company provides a valuation allowance against net deferred tax assets unless, based upon the available evidence, it is more likely than not that the deferred tax assets will be realized. | |||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition | ||||||||||||||||
Revenue is recognized when all four of the following criteria are met: (i) persuasive evidence that an arrangement exists; (ii) delivery of the products has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. The Company records revenue when all of its obligations are completed, which is generally upon shipment of the Company's products. Amounts received in excess of revenue recognizable are deferred. | |||||||||||||||||
Our revenues are primarily derived from the sale of disposable test cards. We sell our proprietary TearLab® Osmolarity System and related test cards to our customers, who are primarily eye care professionals, for use in osmolarity testing procedures. Our products are generally shipped from our primary distribution and warehousing operations facility located in San Diego, California. The Company’s sales are currently direct to customers in the United States, Canada and the United Kingdom and to distributors in South America, Europe and Asia. | |||||||||||||||||
The Company enters into contracts where revenue is derived either from agreements whereby the customer is provided the right to use the TearLab® Osmolarity System (reader equipment) at no separate cost to the customer in consideration for a minimum purchase commitment of disposables over the related contract term (referred to as either “Use Agreements”, “Masters Agreements” or “Flex Agreements”), or from agreements with sales of multiple deliverables, such as the reader equipment and disposable test cards (referred to as “Purchase Agreements”). | |||||||||||||||||
Purchase commitments for Use Agreements and Flex Agreements are expressed in the agreement for a specified period of time (generally one to three years), and the purchase commitment for Masters Agreements is implied for large physician practices with an expectation of purchasing certain levels of test cards. The Company recovers the cost of providing the reader equipment in the amount charged for disposables. These agreements are treated as operating leases as collectibility of the minimum lease payments is not reasonably predictable at the outset of the arrangement. Accordingly, revenue is recognized over the defined contract term as disposable test cards are shipped. When reader equipment is placed with a customer at no separate cost, the Company retains title to the equipment and it remains capitalized on the Company’s consolidated balance sheet as equipment classified within fixed assets, net. The equipment is depreciated on a straight-line basis once shipped to a customer location over its estimated useful life and depreciation expense is included in Cost of Goods Sold within the consolidated statement of operations and comprehensive loss. | |||||||||||||||||
Revenue recognition for Purchase Agreements with multiple deliverables is based on the individual units of accounting determined to exist in the contract. A delivered item is considered a separate unit of accounting when the delivered item has value to the customer on a stand-alone basis. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. Considering that test cards are essential to the operation of a TearLab reader, there is no alternative vendor for the test cards and no indication that a secondary market for the TearLab readers is established, the deliverables under the contracts entered into during 2014 and 2013 do not meet criteria for separation under the multiple-element arrangements guidance. Consideration is allocated at the inception of the contract to all deliverables based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence (VSOE) of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence exists, the Company uses its best estimate of the selling price for the deliverable. The Company recognizes revenue for each of the elements only when it determines that all applicable recognition criteria have been met. | |||||||||||||||||
Although the Company has a no return policy for its products, the Company has established a return reserve for product sales that contain an implicit right of return. The Company reserves for estimated returns or refunds by reducing revenues at the time of shipment based on historical experience. The reserve of $77,000 and $173,000 as of December 31, 2014 and December 31, 2013, respectively, has been recorded as a reduction of revenue and is included in accounts receivable. | |||||||||||||||||
Cost of Sales, Policy [Policy Text Block] | Cost of goods sold | ||||||||||||||||
Cost of goods sold includes the costs the Company incurs for the purchase of the TearLab® Systems sold and related freight and shipping costs, fees related to warehousing and logistics inventory management associated with conducting business and depreciation of reader equipment. The Company recorded $1,109,000, $912,000 and $255,000 in shipping and handling fees for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Research and Development Expense, Policy [Policy Text Block] | Clinical, regulatory and research & development costs | ||||||||||||||||
Clinical and regulatory costs attributable to the performance of contract services are recognized as an expense as the services are performed. Non-refundable, up-front fees paid in connection with these contracted services are deferred and recognized as an expense over the estimated term of the related contract. | |||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-based compensation | ||||||||||||||||
The Company accounts for stock-based compensation expense for its employees in accordance with US GAAP guidance related to stock-based compensation. Under this guidance, stock-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as an expense ratably over the requisite service period of the award. The Company uses the Black-Scholes Merton option pricing model for determining the fair value for all its awards and will recognize compensation cost on a straight-line basis over the awards' vesting periods. | |||||||||||||||||
Advertising Costs, Policy [Policy Text Block] | Advertising Costs | ||||||||||||||||
Advertising costs are expensed as incurred. Total advertising costs for each of the years ended December 31, 2014, 2013 and 2012 were $0.3 million, $0.4 million and $0.3 million, respectively. | |||||||||||||||||
Derivatives, Policy [Policy Text Block] | Warrant liabilities | ||||||||||||||||
The Company issued several rounds of warrants related to various debt and equity transactions which occurred in 2011. The Company accounts for its warrants issued in accordance with the US GAAP accounting guidance under Accounting Standards Codification (ASC) 815 applicable to derivative instruments, which requires every derivative instrument within its scope to be recorded on the balance sheet as either an asset or liability measured at its fair value, with changes in fair value recognized in earnings. Based on this guidance, the Company determined that the Company's warrants do not meet the criteria for classification as equity. Accordingly, the Company classified the warrants as current liabilities. The warrants are subject to remeasurement at each balance sheet date with any change in fair value recognized as a component of other income (expense), in the statements of operations and comprehensive loss. Warrants are also remeasured at fair value immediately prior to being exercised, and the resulting fair value is reclassed into additional paid-in capital, net of any applicable exercise proceeds. The Company estimated the fair value of these warrants at the respective balance sheet dates using the Black-Scholes Merton option pricing model as described in the stock-based compensation section above, based on the estimated market value of the underlying common stock at the valuation measurement date, the remaining contractual term of the warrant, risk-free interest rates and expected dividends on and expected volatility of the price of the underlying common stock. There is a moderate degree of subjectivity involved when using option pricing models to estimate warrant liability and the assumptions used in the Black-Scholes Merton option pricing model are moderately judgmental. | |||||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency transactions | ||||||||||||||||
The Company's functional and reporting currency is the U.S. dollar. The assets and liabilities of the Company's Canadian operations are maintained in U.S. dollars. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the consolidated balance sheet dates, and non-monetary assets and liabilities are translated at exchange rates in effect on the date of the transaction. Revenue and expenses are translated into U.S. dollars at average exchange rates prevailing during the year. Resulting exchange gains (losses) of: ($35,000), ($131,000) and ($15,000) are included in other income (expense) in the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Segment Reporting, Policy [Policy Text Block] | Geographic information | ||||||||||||||||
The following table provides geographic information related to the Company's revenues based on the geographic location which we deliver the product. (in thousands): | |||||||||||||||||
United States | Canada | Rest of World | Total | ||||||||||||||
31-Dec-14 | |||||||||||||||||
Revenues | $ | 18,589 | $ | 200 | $ | 929 | $ | 19,718 | |||||||||
31-Dec-13 | |||||||||||||||||
Revenues | $ | 13,844 | $ | 121 | $ | 680 | $ | 14,645 | |||||||||
Comprehensive Income, Policy [Policy Text Block] | Comprehensive loss | ||||||||||||||||
Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) generally includes unrealized gains or losses on the Company's marketable securities and foreign currency translation adjustments. In all the periods presented, the Company's comprehensive loss equaled net loss for the period. | |||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Net loss per share | ||||||||||||||||
Basic earnings per share (''EPS'') excludes dilutive securities and is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted and the resulting additional shares are dilutive because their inclusion decreases the amount of EPS. | |||||||||||||||||
The following are potentially dilutive securities which have not been used in the calculation of diluted loss per share as they are anti-dilutive (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock options | 6,363 | 5,537 | 4,100 | ||||||||||||||
Warrants | 74 | 599 | 2,183 | ||||||||||||||
Total | 6,437 | 6,136 | 6,283 | ||||||||||||||
The following table is a reconciliation of the weighted average shares outstanding used for basic and diluted loss per share: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Weighted average shares outstanding - Basic | 33,578,820 | 30,759,305 | 25,490,186 | ||||||||||||||
Dilutive potential common shares | 138,524 | - | - | ||||||||||||||
Weighted average shares outstanding - Diluted | 33,717,344 | 30,759,305 | 25,490,186 | ||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting pronouncements | ||||||||||||||||
In May 2014, the Financial Accountings Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | |||||||||||||||||
In August 2014, the Financial Accountings Standards Board issued guidance which requires management to assess an entity’s ability to continue as a going concern and to provide related disclosures in certain circumstances. Under the new guidance, disclosures are required when conditions give rise to substantial doubt about an entity’s ability to continue as a going concern within one year from the financial statement issuance date. The guidance is effective for annual periods ending after December 15, 2016, and all annual and interim periods thereafter. Early application is permitted. The adoption of this guidance will not have any impact on the Company’s financial position and results of operations and, as this time, the Company does not expect any impact on its disclosures. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Schedule of Product Warranty Liability [Table Text Block] | Years ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance at beginning of year | $ | 180 | $ | 107 | $ | 36 | |||||||||||
Charges to cost of goods sold | 79 | 271 | 196 | ||||||||||||||
Costs applied to liability | (138 | ) | (198 | ) | (125 | ) | |||||||||||
Balance at end of year | $ | 121 | $ | 180 | $ | 107 | |||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | United States | Canada | Rest of World | Total | |||||||||||||
31-Dec-14 | |||||||||||||||||
Revenues | $ | 18,589 | $ | 200 | $ | 929 | $ | 19,718 | |||||||||
31-Dec-13 | |||||||||||||||||
Revenues | $ | 13,844 | $ | 121 | $ | 680 | $ | 14,645 | |||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock options | 6,363 | 5,537 | 4,100 | ||||||||||||||
Warrants | 74 | 599 | 2,183 | ||||||||||||||
Total | 6,437 | 6,136 | 6,283 | ||||||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Weighted average shares outstanding - Basic | 33,578,820 | 30,759,305 | 25,490,186 | ||||||||||||||
Dilutive potential common shares | 138,524 | - | - | ||||||||||||||
Weighted average shares outstanding - Diluted | 33,717,344 | 30,759,305 | 25,490,186 |
Note_3_Balance_Sheet_Details_T
Note 3 - Balance Sheet Details (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Note 3 - Balance Sheet Details (Tables) [Line Items] | |||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (in thousands) | December 31, | |||||||
2014 | 2013 | ||||||||
Trade receivables | $ | 2,904 | $ | 3,939 | |||||
Allowance for doubtful accounts | (424 | ) | (415 | ) | |||||
$ | 2,480 | $ | 3,524 | ||||||
Schedule of Inventory, Current [Table Text Block] | (in thousands) | December 31, | |||||||
2014 | 2013 | ||||||||
Finished goods | $ | 2,990 | $ | 899 | |||||
Inventory reserves | (4 | ) | (14 | ) | |||||
$ | 2,986 | $ | 885 | ||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | (in thousands) | December 31, | |||||||
2014 | 2013 | ||||||||
Prepaid trade shows | $ | 177 | $ | 162 | |||||
Prepaid insurance | 301 | 227 | |||||||
Manufacturing deposits | 182 | 104 | |||||||
Subscriptions | 82 | 86 | |||||||
Other fees and services | 142 | 110 | |||||||
$ | 884 | $ | 689 | ||||||
Property, Plant and Equipment [Table Text Block] | (in thousands) | December 31, | |||||||
2014 | 2013 | ||||||||
Furniture and office equipment | $ | 267 | $ | 221 | |||||
Leasehold improvements | 51 | 47 | |||||||
Computer equipment and software | 819 | 386 | |||||||
Capitalized TearLab equipment readers | 5,655 | 3,640 | |||||||
Medical equipment | 426 | 401 | |||||||
7,218 | 4,695 | ||||||||
Accumulated depreciation | (2,714 | ) | (1,266 | ) | |||||
$ | 4,504 | $ | 3,429 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization of intangible assets | ||||||||
2015 | 1,527 | ||||||||
2016 | 1,379 | ||||||||
2017 | 313 | ||||||||
2018 | 313 | ||||||||
2019 | 64 | ||||||||
Total | $ | 3,596 | |||||||
Schedule of Accrued Liabilities [Table Text Block] | (in thousands) | December 31, | |||||||
2014 | 2013 | ||||||||
Due to professionals | $ | 787 | $ | 616 | |||||
Due to employees and directors | 1,589 | 1,503 | |||||||
Goods received but not yet invoiced | 17 | 207 | |||||||
Sales and use tax liabilities | 221 | 527 | |||||||
Royalty liability | 330 | 281 | |||||||
Readers and test cards in transit | 0 | 368 | |||||||
Other | 821 | 342 | |||||||
$ | 3,765 | $ | 3,844 | ||||||
Patents and Trademarks [Member] | |||||||||
Note 3 - Balance Sheet Details (Tables) [Line Items] | |||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | (in thousands) | December 31, | |||||||
2014 | 2013 | ||||||||
Patents | $ | 236 | $ | 236 | |||||
Trademarks | 32 | 32 | |||||||
268 | 268 | ||||||||
Accumulated amortization | (188 | ) | (160 | ) | |||||
$ | 80 | $ | 108 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2015 | $ | 28 | ||||||
2016 | 28 | ||||||||
2017 | 24 | ||||||||
Total | $ | 80 |
Note_4_Intangible_Assets_Table
Note 4 - Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | 31-Dec-14 | 31-Dec-13 | |||||||||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | ||||||||||||||
TearLab® technology | $ | 12,172 | $ | 9,892 | $ | 12,172 | $ | 8,678 | |||||||||
OcuHub platform technology | 1,564 | 248 | - | - | |||||||||||||
$ | 13,736 | $ | 10,140 | $ | 12,172 | $ | 8,678 | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization of intangible assets | ||||||||||||||||
2015 | 1,527 | ||||||||||||||||
2016 | 1,379 | ||||||||||||||||
2017 | 313 | ||||||||||||||||
2018 | 313 | ||||||||||||||||
2019 | 64 | ||||||||||||||||
Total | $ | 3,596 |
Note_6_Income_Taxes_Tables
Note 6 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 22,768 | $ | 28,155 | $ | 19,222 | |||||||
Foreign | 954 | 835 | 90 | ||||||||||
Loss before income taxes | 23,722 | 28,990 | 19,312 | ||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Intangible assets | $ | 446 | $ | 413 | |||||||||
Stock options | 3,120 | 1,955 | |||||||||||
Accruals and other | 848 | 742 | |||||||||||
Net operating loss carry forwards | 21,345 | 14,449 | |||||||||||
25,759 | 17,559 | ||||||||||||
Valuation allowance | (24,971 | ) | (16,244 | ) | |||||||||
Deferred tax asset | 788 | 1,315 | |||||||||||
Deferred tax liability | |||||||||||||
Intangible assets | (788 | ) | (1,315 | ) | |||||||||
Deferred tax liability | (788 | ) | (1,315 | ) | |||||||||
Deferred taxes, net | $ | — | $ | — | |||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Loss for the year before income taxes | $ | (23,722 | ) | $ | (28,990 | ) | $ | (19,312 | ) | ||||
Expected recovery of income taxes | (8,064 | ) | (9,856 | ) | (6,759 | ) | |||||||
State income tax, net of federal benefit | (438 | ) | (440 | ) | (1,070 | ) | |||||||
Stock-based compensation | 189 | 204 | 64 | ||||||||||
Warrants | (400 | ) | 3,776 | 2,958 | |||||||||
Non-deductible interest | — | — | — | ||||||||||
Deferred state tax rate adjustment | (151 | ) | 899 | (92 | ) | ||||||||
Expiration of options | - | 3,761 | — | ||||||||||
Adjustment to deferred assets | 47 | 1,138 | 187 | ||||||||||
Non-deductible expenses & other | 90 | 112 | 32 | ||||||||||
Change in valuation allowance | 8,727 | 406 | 4,680 | ||||||||||
Total recovery of income taxes | $ | — | $ | — | $ | — |
Note_7_Commitments_and_Conting1
Note 7 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Royalty Payments [Table Text Block] | 2015 | 35 | |||
2016 | 35 | ||||
2017 | 35 | ||||
2018 | 35 | ||||
Thereafter | 315 | ||||
Total | $ | 455 | |||
2015 | 35 | ||||
2016 | 35 | ||||
2017 | 35 | ||||
2018 | 35 | ||||
Thereafter | 315 | ||||
Total | $ | 455 |
Note_8_Fair_Value_Measurements1
Note 8 - Fair Value Measurements (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Fair Value Disclosures [Abstract] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Fair Value Measurements Using Significant Unobservable Inputs | ||
(Level 3) | |||
Balance of warrant liability at January 1, 2013 | $ | 6,239 | |
Reclass of warrant liability to stockholder’s equity upon exercise | (13,297) | ||
Change in fair value of warrant liability included in other (income) / expense | 11,105 | ||
Balance of warrant liability at December 31, 2013 | $ | 4,047 | |
Fair Value Measurements Using Significant Unobservable Inputs | |||
(Level 3) | |||
Balance of warrant liability at January 1, 2014 | $ | 4,047 | |
Reclass of warrant liability to stockholder’s equity upon exercise | (2,616) | ||
Change in fair value of warrant liability included in other (income) / expense | (1,175) | ||
Balance of warrant liability at December 31, 2014 | $ | 256 |
Note_9_Capital_Stock_Tables
Note 9 - Capital Stock (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
General and administrative | $ | 2,437 | $ | 1,837 | $ | 528 | |||||||||||
Clinical and regulatory | 159 | 174 | 375 | ||||||||||||||
Sales and marketing | 1,228 | 1,727 | 538 | ||||||||||||||
Stock-based compensation expense before income taxes | $ | 3,824 | $ | 3,738 | $ | 1,441 | |||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Volatility | 87 | % | 101 | % | 104 | % | |||||||||||
Weighted average Expected life of options (years) | 5.84 | 5.89 | 5.74 | ||||||||||||||
Risk-free interest rate | 1.57 | % | 1.43 | % | 0.88 | % | |||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Volatility | 64 | % | |||||||||||||||
Expected life (years) | 0.5 | ||||||||||||||||
Risk-free interest rate | 0.07 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Volatility | 65 | % | |||||||||||||||
Expected life of Warrants (years) | 1.5 | ||||||||||||||||
Risk-free interest rate | 0.46 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Options Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding, December 31, 2011 | 3,690,654 | 3.34 | 7.06 | $ | 269,587 | ||||||||||||
Granted | 720,250 | 3.69 | |||||||||||||||
Exercised | (294,384 | ) | 0.37 | ||||||||||||||
Forfeited/cancelled/expired | (17,178 | ) | 10.37 | ||||||||||||||
Outstanding, December 31, 2012 | 4,099,342 | 3.54 | 7.14 | $ | 6,798,973 | ||||||||||||
Granted | 1,837,500 | 9.78 | |||||||||||||||
Exercised | (181,854 | ) | 2.52 | ||||||||||||||
Forfeited/cancelled/expired | (218,193 | ) | 11.07 | ||||||||||||||
Outstanding, December 31, 2013 | 5,536,795 | $ | 4.91 | 6.89 | $ | 27,256,235 | |||||||||||
Granted | 1,412,500 | 4.63 | |||||||||||||||
Exercised | (57,763 | ) | 3.18 | ||||||||||||||
Forfeited/cancelled/expired | (528,406 | ) | 11.1 | ||||||||||||||
Outstanding, December 31, 2014 | 6,363,126 | $ | 4.76 | 6.57 | $ | 2,155,404 | |||||||||||
Vested or expected to vest, December 31, 2014 | 4,523,922 | $ | 4.06 | 5.59 | $ | 2,068,716 | |||||||||||
Exercisable, December 31, 2014 | 3,400,612 | $ | 2.86 | 4.58 | $ | 2,035,262 | |||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Number of warrants outstanding | Weighted average exercise price | |||||||||||||||
Outstanding, December 31, 2012 | 2,183 | 1.85 | |||||||||||||||
Exercised | (1,584 | ) | 1.86 | ||||||||||||||
Outstanding, December 31, 2013 | 599 | 1.83 | |||||||||||||||
Exercised | (305 | ) | 1.86 | ||||||||||||||
Outstanding, December 31, 2014 | 294 | $ | 1.79 |
Note_10_Consolidated_Statement1
Note 10 - Consolidated Statements of Cash Flows (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||
Cash Flow, Operating Capital [Table Text Block] | Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Accounts receivable | $ | 1,044 | $ | (2,650 | ) | $ | (557 | ) | |||||
Due from related parties | - | 15 | (11 | ) | |||||||||
Inventory | (2,101 | ) | 978 | (965 | ) | ||||||||
Prepaid expenses | (166 | ) | (302 | ) | (197 | ) | |||||||
Other current assets | 4 | 50 | (25 | ) | |||||||||
Other non-current assets | (117 | ) | (12 | ) | (27 | ) | |||||||
Accounts payable | 1,340 | (436 | ) | 849 | |||||||||
Accrued liabilities | (147 | ) | 1,329 | 146 | |||||||||
Deferred rent/revenue | 106 | 67 | — | ||||||||||
$ | (37 | ) | $ | (961 | ) | $ | (787 | ) | |||||
Schedule of Other Significant Noncash Transactions [Table Text Block] | Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Common stock issued in consideration of management bonuses | — | — | 1,182 | ||||||||||
Reclass of warrant liabilities to Stockholders Equity upon cashless exercise of warrants | 2,616 | 13,297 | 4,014 | ||||||||||
Additions to fixed assets | 69 | 526 | — |
Note_12_Quarterly_Financial_Da1
Note 12 - Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | Fiscal 2014 Quarter Ended | ||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
Revenue(i) | $ | 4,211 | $ | 4,999 | $ | 5,212 | $ | 5,297 | |||||||||
Loss from operations (i) | (5,922 | ) | (5,885 | ) | (6,114 | ) | (7,083 | ) | |||||||||
Net loss (i) | $ | (5,557 | ) | $ | (5,439 | ) | $ | (5,785 | ) | $ | (6,941 | ) | |||||
Weighted average number of shares outstanding basic(i) | 33,550 | 33,585 | 33,589 | 33,591 | |||||||||||||
Net loss per common share basic (i) | $ | (0.17 | ) | $ | (0.16 | ) | $ | (0.17 | ) | $ | (0.21 | ) | |||||
Weighted average number of shares outstanding diluted | 33,732 | 33,721 | 33,712 | 33,662 | |||||||||||||
Net loss per common share diluted (i) | $ | (0.17 | ) | $ | (0.17 | ) | $ | (0.18 | ) | $ | (0.21 | ) | |||||
Fiscal 2013 Quarter Ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
Revenue(i) | $ | 2,475 | $ | 3,525 | $ | 4,207 | $ | 4,438 | |||||||||
Loss from operations (i) | (3,162 | ) | (5,279 | ) | (3,829 | ) | (5,504 | ) | |||||||||
Net loss (i) | $ | (8,574 | ) | $ | (12,025 | ) | $ | (4,240 | ) | $ | (4,151 | ) | |||||
Weighted average number of shares outstanding basic(i) | 28,756 | 29,178 | 31,914 | 33,129 | |||||||||||||
Net loss per common share basic (i) | $ | (0.30 | ) | $ | (0.41 | ) | $ | (0.13 | ) | $ | (0.13 | ) | |||||
Weighted average number of shares outstanding diluted | 28,756 | 29,178 | 31,914 | 33,679 | |||||||||||||
Net loss per common share diluted (i) | $ | (0.30 | ) | $ | (0.41 | ) | $ | (0.13 | ) | $ | (0.17 | ) |
Note_1_Basis_of_Presentation_D
Note 1 - Basis of Presentation (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 04, 2015 | Dec. 31, 2011 | |
Note 1 - Basis of Presentation (Details) [Line Items] | |||||||||||||
Number of Operating Segments | 1 | ||||||||||||
Net Income (Loss) Attributable to Parent | ($6,941,000) | ($5,785,000) | ($5,439,000) | ($5,557,000) | ($4,151,000) | ($4,240,000) | ($12,025,000) | ($8,574,000) | ($23,722,000) | ($28,990,000) | ($19,312,000) | ||
Working Capital | 16,300,000 | 16,300,000 | |||||||||||
Cash and Cash Equivalents, at Carrying Value | 16,338,000 | 37,778,000 | 16,338,000 | 37,778,000 | 15,437,000 | 2,807,000 | |||||||
Subsequent Event [Member] | CRG [Member] | |||||||||||||
Note 1 - Basis of Presentation (Details) [Line Items] | |||||||||||||
Term Loan, Maximum Borrowing Capacity | 35,000,000 | ||||||||||||
Proceeds from Issuance of Long-term Debt | $15,000,000 |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |||
Allowance for Doubtful Accounts Receivable | $424,000 | $415,000 | |
Provision for Doubtful Accounts | 121,000 | 377,000 | 10,000 |
Revenue Recognition, Sales Returns, Reserve for Sales Returns | 77,000 | 173,000 | |
Shipping, Handling and Transportation Costs | 1,109,000 | 912,000 | 255,000 |
Advertising Expense | 300,000 | 400,000 | 300,000 |
Foreign Currency Transaction Gain (Loss), before Tax | ($35,000) | $131,000 | ($15,000) |
Supplier for Reader and Pen Components [Member] | |||
Note 2 - Significant Accounting Policies (Details) [Line Items] | |||
Concentration Risk, Number of Suppliers | 2 | ||
Supplier for Test Cards [Member] | |||
Note 2 - Significant Accounting Policies (Details) [Line Items] | |||
Concentration Risk, Number of Suppliers | 1 | ||
TearLabB. Osmolarity System [Member] | |||
Note 2 - Significant Accounting Policies (Details) [Line Items] | |||
Product Warranty, Term | 1 year | ||
Patents and Trademarks [Member] | Maximum [Member] | |||
Note 2 - Significant Accounting Policies (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Patents and Trademarks [Member] | |||
Note 2 - Significant Accounting Policies (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Other Intangible Assets [Member] | Maximum [Member] | |||
Note 2 - Significant Accounting Policies (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Minimum [Member] | |||
Note 2 - Significant Accounting Policies (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum [Member] | |||
Note 2 - Significant Accounting Policies (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies (Details) - Warranty Reserve (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Warranty Reserve [Abstract] | |||
Balance at beginning of year | $180 | $107 | $36 |
Charges to cost of goods sold | 79 | 271 | 196 |
Costs applied to liability | -138 | -198 | -125 |
Balance at end of year | $121 | $180 | $107 |
Note_2_Significant_Accounting_4
Note 2 - Significant Accounting Policies (Details) - Geographic Information for the Company's Fixed Assets and Revenues (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||||
Revenues | $5,297 | [1] | $5,212 | [1] | $4,999 | [1] | $4,211 | [1] | $4,438 | [1] | $4,207 | [1] | $3,525 | [1] | $2,475 | [1] | $19,718 | $14,645 | $3,960 |
UNITED STATES | |||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||||
Revenues | 18,589 | 13,844 | |||||||||||||||||
CANADA | |||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||||
Revenues | 200 | 121 | |||||||||||||||||
Rest of World [Member] | |||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||||
Revenues | $929 | $680 | |||||||||||||||||
[1] | Net loss per share basic and diluted are computed independently for the quarters presented. Therefore, the sum of the quarterly per share information may not be equal to the annual per share information. Also totals may not add to the financial statements due to rounding. |
Note_2_Significant_Accounting_5
Note 2 - Significant Accounting Policies (Details) - Antidilutive Securities Excluded from Earnings Per Share | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 6,437 | 6,136 | 6,283 |
Equity Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 6,363 | 5,537 | 4,100 |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 74 | 599 | 2,183 |
Note_2_Significant_Accounting_6
Note 2 - Significant Accounting Policies (Details) - Weighted Average Shares Outstanding | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||
Weighted Average Shares Outstanding [Abstract] | |||||||||||||||||||
Weighted average shares outstanding - Basic | 33,591,000 | [1] | 33,589,000 | [1] | 33,585,000 | [1] | 33,550,000 | [1] | 33,129,000 | [1] | 31,914,000 | [1] | 29,178,000 | [1] | 28,756,000 | [1] | 33,578,820 | 30,759,305 | 25,490,186 |
Dilutive potential common shares | 138,524 | ||||||||||||||||||
Weighted average shares outstanding - Diluted | 33,662,000 | 33,712,000 | 33,721,000 | 33,732,000 | 33,679,000 | 31,914,000 | 29,178,000 | 28,756,000 | 33,717,344 | 30,759,305 | 25,490,186 | ||||||||
[1] | Net loss per share basic and diluted are computed independently for the quarters presented. Therefore, the sum of the quarterly per share information may not be equal to the annual per share information. Also totals may not add to the financial statements due to rounding. |
Note_3_Balance_Sheet_Details_D
Note 3 - Balance Sheet Details (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 3 - Balance Sheet Details (Details) [Line Items] | |||
Depreciation | $1,448,000 | $624,000 | $137,000 |
Amortization of Intangible Assets | 1,462,000 | 1,215,000 | 1,215,000 |
Patents and Trademarks [Member] | |||
Note 3 - Balance Sheet Details (Details) [Line Items] | |||
Amortization of Intangible Assets | $28,000 | $28,000 | $28,000 |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Note_3_Balance_Sheet_Details_D1
Note 3 - Balance Sheet Details (Details) - Accounts Receivable, Net (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts Receivable, Net [Abstract] | ||
Trade receivables | $2,904,000 | $3,939,000 |
Allowance for doubtful accounts | -424,000 | -415,000 |
$2,480,000 | $3,524,000 |
Note_3_Balance_Sheet_Details_D2
Note 3 - Balance Sheet Details (Details) - Inventory (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Abstract] | ||
Finished goods | $2,990 | $899 |
Inventory reserves | -4 | -14 |
$2,986 | $885 |
Note_3_Balance_Sheet_Details_D3
Note 3 - Balance Sheet Details (Details) - Prepaid Expenses (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses [Abstract] | ||
Prepaid trade shows | $177 | $162 |
Prepaid insurance | 301 | 227 |
Manufacturing deposits | 182 | 104 |
Subscriptions | 82 | 86 |
Other fees and services | 142 | 110 |
$884 | $689 |
Note_3_Balance_Sheet_Details_D4
Note 3 - Balance Sheet Details (Details) - Fixed Assets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | $7,218 | $4,695 |
7,218 | 4,695 | |
Accumulated depreciation | -2,714 | -1,266 |
4,504 | 3,429 | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 267 | 221 |
267 | 221 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 51 | 47 |
51 | 47 | |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 819 | 386 |
819 | 386 | |
Capitalized TearLab Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 5,655 | 3,640 |
5,655 | 3,640 | |
Medical Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment | 426 | 401 |
$426 | $401 |
Note_3_Balance_Sheet_Details_D5
Note 3 - Balance Sheet Details (Details) - Patents and Trademarks (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | $268 | $268 |
268 | 268 | |
Accumulated amortization | -10,140 | -8,678 |
80 | 108 | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 236 | 236 |
236 | 236 | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 32 | 32 |
32 | 32 | |
Patents and Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | ($188) | ($160) |
Note_3_Balance_Sheet_Details_D6
Note 3 - Balance Sheet Details (Details) - Estimated Aggregate Amortization Expense for Patents and Trademarks (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Note 3 - Balance Sheet Details (Details) - Estimated Aggregate Amortization Expense for Patents and Trademarks [Line Items] | |
2015 | $1,527 |
2016 | 1,379 |
2017 | 313 |
Total | 3,596 |
Patents and Trademarks [Member] | |
Note 3 - Balance Sheet Details (Details) - Estimated Aggregate Amortization Expense for Patents and Trademarks [Line Items] | |
2015 | 28 |
2016 | 28 |
2017 | 24 |
Total | $80 |
Note_3_Balance_Sheet_Details_D7
Note 3 - Balance Sheet Details (Details) - Accrued Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ||
Due to professionals | $787 | $616 |
Due to employees and directors | 1,589 | 1,503 |
Goods received but not yet invoiced | 17 | 207 |
Sales and use tax liabilities | 221 | 527 |
Royalty liability | 330 | 281 |
Readers and test cards in transit | 0 | 368 |
Other | 821 | 342 |
$3,765 | $3,844 |
Note_4_Intangible_Assets_Detai
Note 4 - Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 4 - Intangible Assets (Details) [Line Items] | |||
Amortization of Intangible Assets | $1,462,000 | $1,215,000 | $1,215,000 |
TearLab Technology [Member] | |||
Note 4 - Intangible Assets (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Ocuhub Platform Technology [Member] | |||
Note 4 - Intangible Assets (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Note_4_Intangible_Assets_Detai1
Note 4 - Intangible Assets (Details) - Intangible Assets Subject to Amortization (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | $13,736 | $12,172 |
Accumulated Amortization | 10,140 | 8,678 |
TearLab Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 12,172 | 12,172 |
Accumulated Amortization | 9,892 | 8,678 |
Ocuhub Platform Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,564 | |
Accumulated Amortization | $248 |
Note_4_Intangible_Assets_Detai2
Note 4 - Intangible Assets (Details) - Intangible Asset Future Amortization Expense (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Intangible Asset Future Amortization Expense [Abstract] | |
2015 | $1,527 |
2016 | 1,379 |
2017 | 313 |
2018 | 313 |
2019 | 64 |
Total | $3,596 |
Note_5_Related_Party_Transacti1
Note 5 - Related Party Transactions (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | Sales and Marketing Expense [Member] | Sales and Marketing Expense [Member] | Science With Vision Inc. [Member] | Science With Vision Inc. [Member] | Science With Vision Inc. [Member] | |
Science With Vision Inc. [Member] | Science With Vision Inc. [Member] | USD ($) | USD ($) | USD ($) | |||
Termination Of Distribution Agreement [Member] | Termination Of Distribution Agreement [Member] | ||||||
USD ($) | CAD | ||||||
Note 5 - Related Party Transactions (Details) [Line Items] | |||||||
Revenue from Related Parties | $0 | $0 | $59,000 | ||||
Due from Related Parties, Current | 0 | 0 | 15,000 | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 190,000 | 200,000 | |||||
Accrued Royalties, Current | $330,000 | $281,000 | $3,000 |
Note_6_Income_Taxes_Details
Note 6 - Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 6 - Income Taxes (Details) [Line Items] | ||
Unrecognized Tax Benefits | $0 | $0 |
Liability for Uncertain Tax Positions, Current | 0 | 0 |
Increase in Ownership of Certain Stockholders or Public Groups in the Stock of Corporation | 0.00% | |
Open Period Subject to Examination After Formal Notification to the States | 1 year | |
Domestic Tax Authority [Member] | ||
Note 6 - Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards | 58,400,000 | |
State and Local Jurisdiction [Member] | ||
Note 6 - Income Taxes (Details) [Line Items] | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 40,200,000 | |
Foreign Tax Authority [Member] | ||
Note 6 - Income Taxes (Details) [Line Items] | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 12,700,000 | |
Operating Loss Carryforwards Related to Stock Option Exercises [Member] | ||
Note 6 - Income Taxes (Details) [Line Items] | ||
Operating Loss Carryforwards | 1,500,000 | |
Research Tax Credit Carryforward [Member] | ||
Note 6 - Income Taxes (Details) [Line Items] | ||
Tax Credit Carryforward, Amount | $0 | $0 |
Minimum [Member] | ||
Note 6 - Income Taxes (Details) [Line Items] | ||
Open Period Subject to Examination for State and Provincial Income Tax Returns | 3 years | |
Maximum [Member] | ||
Note 6 - Income Taxes (Details) [Line Items] | ||
Open Period Subject to Examination for State and Provincial Income Tax Returns | 5 years |
Note_6_Income_Taxes_Details_Ge
Note 6 - Income Taxes (Details) - Geographic Sources of (Loss) Income from Continuing Operation before Income Tax (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Geographic Sources of (Loss) Income from Continuing Operation before Income Tax [Abstract] | |||
Domestic | $22,768 | $28,155 | $19,222 |
Foreign | 954 | 835 | 90 |
Loss before income taxes | $23,722 | $28,990 | $19,312 |
Note_6_Income_Taxes_Details_De
Note 6 - Income Taxes (Details) - Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Intangible assets | $446 | $413 |
Stock options | 3,120 | 1,955 |
Accruals and other | 848 | 742 |
Net operating loss carry forwards | 21,345 | 14,449 |
25,759 | 17,559 | |
Valuation allowance | -24,971 | -16,244 |
Deferred tax asset | 788 | 1,315 |
Deferred tax liability | ||
Intangible assets | -788 | -1,315 |
Deferred tax liability | -788 | -1,315 |
Deferred taxes, net | $0 | $0 |
Note_6_Income_Taxes_Details_Re
Note 6 - Income Taxes (Details) - Reconciliation of Income Taxes (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Income Taxes [Abstract] | |||
Loss for the year before income taxes | ($23,722) | ($28,990) | ($19,312) |
Expected recovery of income taxes | -8,064 | -9,856 | -6,759 |
State income tax, net of federal benefit | -438 | -440 | -1,070 |
Stock-based compensation | 189 | 204 | 64 |
Warrants | -400 | 3,776 | 2,958 |
Non-deductible interest | 0 | 0 | 0 |
Deferred state tax rate adjustment | -151 | 899 | -92 |
Expiration of options | 3,761 | ||
Adjustment to deferred assets | 47 | 1,138 | 187 |
Non-deductible expenses & other | 90 | 112 | 32 |
Change in valuation allowance | 8,727 | 406 | 4,680 |
Total recovery of income taxes | $0 | $0 | $0 |
Note_7_Commitments_and_Conting2
Note 7 - Commitments and Contingencies (Details) | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | AUD | Before FDA Approval [Member] | After FDA Approval [Member] | Patent License and Royalty Agreement 2003 [Member] | Patent License and Royalty Agreement 2006 [Member] | |
Sub-License Fees [Member] | Sub-License Fees [Member] | USD ($) | USD ($) | |||||
Note 7 - Commitments and Contingencies (Details) [Line Items] | ||||||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months (in Dollars) | 389,000 | |||||||
Operating Leases, Future Minimum Payments, Due in Two Years | 371,000 | |||||||
Operating Leases, Future Minimum Payments, Due in Three Years | 353,000 | |||||||
Operating Leases, Future Minimum Payments, Due in Four Years | 177,000 | |||||||
Operating Leases, Rent Expense | 344,000 | 223,000 | 143,000 | |||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years | |||||||
Royalty Payments, Minimum | 35,000 | 35,000 | ||||||
Royalty Rate | 30.00% | 25.00% | 5.50% | 5.50% | ||||
Royalty Expense | 1,088,000 | 807,000 | 213,000 | |||||
Accrued Royalties | 330,000 | 243,000 | ||||||
Percentage of Manufacturers Cost Agreement Contingency | 110.00% | |||||||
Loss Contingency, Estimate of Possible Loss | 66,000 | |||||||
Purchase Commitment, Remaining Minimum Amount Committed | 24,600,000 | 30,200,000 | ||||||
Contractual Obligation, Due in Next Twelve Months | $8,400,000 | $35,000 | $35,000 | |||||
Long-term Purchase Commitment, Minimum Quantity Required | 3,715,000 | |||||||
Long-term Purchase Commitment, Period | 10 years |
Note_7_Commitments_and_Conting3
Note 7 - Commitments and Contingencies (Details) - Future Royalty Payments (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Note 7 - Commitments and Contingencies (Details) - Future Royalty Payments [Line Items] | |
2015 | $8,400 |
Patent License and Royalty Agreement 2003 [Member] | |
Note 7 - Commitments and Contingencies (Details) - Future Royalty Payments [Line Items] | |
2015 | 35 |
2016 | 35 |
2017 | 35 |
2018 | 35 |
Thereafter | 315 |
Total | 455 |
Patent License and Royalty Agreement 2006 [Member] | |
Note 7 - Commitments and Contingencies (Details) - Future Royalty Payments [Line Items] | |
2015 | 35 |
2016 | 35 |
2017 | 35 |
2018 | 35 |
Thereafter | 315 |
Total | $455 |
Note_8_Fair_Value_Measurements2
Note 8 - Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Jun. 13, 2011 | |
Note 8 - Fair Value Measurements (Details) [Line Items] | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 109,375 | |
Warrants and Rights Outstanding | $256,000 | |
Warrants 1 [Member] | ||
Note 8 - Fair Value Measurements (Details) [Line Items] | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 219,604 | |
Investment Warrants, Exercise Price | $1.86 | |
Warrants and Rights Outstanding | $256,000 |
Note_8_Fair_Value_Measurements3
Note 8 - Fair Value Measurements (Details) - Reconciliation for All Liabilities Measured at Fair Value Using Significant Unobservable Inputs (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation for All Liabilities Measured at Fair Value Using Significant Unobservable Inputs [Abstract] | ||
Balance of warrant liability | $4,047 | $6,239 |
Reclass of warrant liability to stockholderbs equity upon exercise | -2,616 | -13,297 |
Change in fair value of warrant liability included in other (income) / expense | -1,175 | 11,105 |
Balance of warrant liability | $256 | $4,047 |
Note_9_Capital_Stock_Details
Note 9 - Capital Stock (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||
Jul. 30, 2013 | Sep. 17, 2012 | Jul. 18, 2012 | Apr. 12, 2012 | Jun. 30, 2011 | Jun. 13, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 11, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | |
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Common Stock, Shares Authorized (in Shares) | 65,000,000 | 65,000,000 | |||||||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $0.00 | $0.00 | |||||||||||
Preferred Stock, Shares Authorized (in Shares) | 10,000,000 | 10,000,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0.00 | $0.00 | |||||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 2,990,000 | 2,500,000 | 3,450,000 | 1,629,539 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 109,375 | ||||||||||||
Debt Instrument, Increase, Accrued Interest | $2,149,000 | ||||||||||||
Payment of Financing and Stock Issuance Costs | 41,000 | 3,036,000 | 1,718,000 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $1.60 | $1.79 | $1.83 | $1.85 | |||||||||
Proceeds from Issuance or Sale of Equity | 7,000,000 | 7,925,000 | |||||||||||
Payments of Stock Issuance Costs | 3,036,000 | 524,000 | 1,194,000 | 703,000 | |||||||||
Share and Warrants, Price Per Unit (in Dollars per share) | $1.82 | ||||||||||||
Shares Per Unit (in Shares) | 1 | ||||||||||||
Warrants Per Unit (in Shares) | 1 | ||||||||||||
Class of Warrant or Right, Exercised During Period (in Shares) | 305,000 | 1,584,000 | |||||||||||
Proceeds from Warrant Exercises | 693,000 | 3,262,000 | |||||||||||
Sale of Stock, Price Per Share (in Dollars per share) | $13.50 | $3.17 | $3.60 | ||||||||||
Proceeds from Issuance of Common Stock | 40,365,000 | 7,925,000 | 12,420,000 | 40,365,000 | 12,420,000 | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | 316,779 | ||||||||||||
Share Price (in Dollars per share) | $3.72 | ||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 1,182,000 | ||||||||||||
Proceeds from Stock Options Exercised | 184,000 | 458,000 | 110,000 | ||||||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 114,000 | ||||||||||||
Allocated Share-based Compensation Expense | 3,824,000 | 3,738,000 | 1,441,000 | ||||||||||
Fair Value Assumptions, Expected Volatility Rate | 97.00% | ||||||||||||
Fair Value Assumptions, Expected Term | 4 years 109 days | ||||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 0.85% | ||||||||||||
Warrants and Rights Outstanding | 256,000 | ||||||||||||
Increase (Decrease) in Derivative Liabilities | -1,438,000 | ||||||||||||
2011 Warrants [Member] | Exercised [Member] | Estimated Fair Value [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Warrants and Rights Outstanding | 2,616,000 | -13,297,000 | -4,014,000 | ||||||||||
2011 Warrants [Member] | Exercised [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Warrants and Rights Outstanding | 2,352,000 | -4,014,000 | 1,346,000 | ||||||||||
2011 Warrants [Member] | OcuHub Business Unit [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Proceeds from Stock Options Exercised | 3,256,000 | ||||||||||||
2011 Warrants [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | 3,846,154 | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $1.86 | ||||||||||||
Proceeds from Issuance or Sale of Equity | 3,451,000 | ||||||||||||
Payments of Stock Issuance Costs | 303,000 | ||||||||||||
Class of Warrant or Right, Exercised During Period (in Shares) | 304,945 | 1,571,136 | 1,750,469 | 0 | |||||||||
Proceeds from Warrant Exercises | 0 | ||||||||||||
Proceeds from Stock Options Exercised | 693,000 | ||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 101.00% | ||||||||||||
Fair Value Assumptions, Expected Term | 5 years | ||||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.76% | ||||||||||||
Warrants and Rights Outstanding | 5,518,000 | ||||||||||||
Increase (Decrease) in Derivative Liabilities | 263,000 | -8,620,000 | 2,668,000 | ||||||||||
Financing Warrants [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Class of Warrant or Right, Exercised During Period (in Shares) | 0 | 12,813 | 22,500 | ||||||||||
Proceeds from Warrant Exercises | 0 | 18,000 | 6,000 | ||||||||||
Warrant Term | 5 years | ||||||||||||
Warrant Liability [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Proceeds from Warrant Exercises | 3,012,000 | ||||||||||||
Common Stock [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 3,846,154 | 2,990,000 | 5,950,000 | ||||||||||
Proceeds from Issuance or Sale of Equity | 3,549,000 | ||||||||||||
Payments of Stock Issuance Costs | 400,000 | ||||||||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in Shares) | 47,902 | ||||||||||||
Non-Statutory Stock Options [Member] | Minimum [Member] | Stock Incentive Plan [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | ||||||||||||
Options Granted to Holder of More Than 10% of Company's Common Stock [Member] | Minimum [Member] | Stock Incentive Plan [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 110.00% | ||||||||||||
Employee Stock Option [Member] | Maximum [Member] | Stock Incentive Plan [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||||||||||||
Employee Stock Option [Member] | Stock Incentive Plan [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 80 days | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 212,806 | ||||||||||||
Employees Directors and Consultants Member] | Stock Incentive Plan [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 6,200,000 | ||||||||||||
Stock Incentive Plan [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in Shares) | 1,000,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $3.02 | $8.96 | $2.93 | ||||||||||
Proceeds from Stock Options Exercised | 184,000 | 458,000 | 110,000 | ||||||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 0 | 0 | 0 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 15,000 | 2,038,000 | 923,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 3,408,903 | 720,000 | 530,000 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 8,954,000 | ||||||||||||
2014 Employee Stock Purchase Plan [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 90.00% | ||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 671,500 | ||||||||||||
Employee Stock Purchase Plan Offering Period | 6 months | ||||||||||||
Share-based Compensation, Employee Stock Purchase Plan Contribution Percentage | 20.00% | ||||||||||||
Share-based Compensation, Employee Stock Purchase Plan Contribution Maximum Amount | 25,000 | ||||||||||||
Share-based Compensation, Employee Stock Purchase Plan Contribution Maximum Shares (in Shares) | 5,000 | ||||||||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 114,000 | ||||||||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in Shares) | 47,902 | ||||||||||||
Allocated Share-based Compensation Expense | 36,000 | ||||||||||||
OcuHub Business Unit [Member] | |||||||||||||
Note 9 - Capital Stock (Details) [Line Items] | |||||||||||||
Proceeds from Sale of Membership Units | 250,000 | ||||||||||||
Membership Unit Ownership Percentage | 2.00% | ||||||||||||
Exchange Right Term | 1 year | ||||||||||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $2,080,000 |
Note_9_Capital_Stock_Details_T
Note 9 - Capital Stock (Details) - Total Stock-Based Compensation Expense Resulting from Stock Options (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $3,824,000 | $3,738,000 | $1,441,000 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 2,437,000 | 1,837,000 | 528,000 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 159,000 | 174,000 | 375,000 |
Selling and Marketing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $1,228,000 | $1,727,000 | $538,000 |
Note_9_Capital_Stock_Details_E
Note 9 - Capital Stock (Details) - Estimated Fair Value Assumptions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
2011 Warrants [Member] | |||
Note 9 - Capital Stock (Details) - Estimated Fair Value Assumptions [Line Items] | |||
Volatility | 65.00% | ||
Weighted average Expected life of options (years) | 1 year 6 months | ||
Risk-free interest rate | 0.46% | ||
Dividend yield | 0.00% | ||
Employee Stock Option [Member] | |||
Note 9 - Capital Stock (Details) - Estimated Fair Value Assumptions [Line Items] | |||
Volatility | 87.00% | 101.00% | 104.00% |
Weighted average Expected life of options (years) | 5 years 306 days | 5 years 324 days | 5 years 270 days |
Risk-free interest rate | 1.57% | 1.43% | 0.88% |
Dividend yield | 0.00% | 0.00% | 0.00% |
2014 Employee Stock Purchase Plan [Member] | |||
Note 9 - Capital Stock (Details) - Estimated Fair Value Assumptions [Line Items] | |||
Volatility | 64.00% | ||
Weighted average Expected life of options (years) | 6 months | ||
Risk-free interest rate | 0.07% | ||
Dividend yield | 0.00% |
Note_9_Capital_Stock_Details_S
Note 9 - Capital Stock (Details) - Stock Options Activity (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Options Activity [Abstract] | ||||
Outstanding, December 31 | 6,363,126 | 5,536,795 | 4,099,342 | 3,690,654 |
Outstanding, December 31 | $4.76 | $4.91 | $3.54 | $3.34 |
Outstanding, December 31 | 6 years 208 days | 6 years 324 days | 7 years 51 days | 7 years 21 days |
Outstanding, December 31 | $2,155,404 | $27,256,235 | $6,798,973 | $269,587 |
Granted | 1,412,500 | 1,837,500 | 720,250 | |
Granted | $4.63 | $9.78 | $3.69 | |
Exercised | -57,763 | -181,854 | -294,384 | |
Exercised | $3.18 | $2.52 | $0.37 | |
Forfeited/cancelled/expired | -528,406 | -218,193 | -17,178 | |
Forfeited/cancelled/expired | $11.10 | $11.07 | $10.37 | |
Vested or expected to vest, December 31, 2014 | 4,523,922 | |||
Vested or expected to vest, December 31, 2014 | $4.06 | |||
Vested or expected to vest, December 31, 2014 | 5 years 215 days | |||
Vested or expected to vest, December 31, 2014 | 2,068,716 | |||
Exercisable, December 31, 2014 | 3,400,612 | |||
Exercisable, December 31, 2014 | $2.86 | |||
Exercisable, December 31, 2014 | 4 years 211 days | |||
Exercisable, December 31, 2014 | $2,035,262 |
Note_9_Capital_Stock_Details_A
Note 9 - Capital Stock (Details) - Activity for the Warrants Outstanding (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 13, 2011 |
Activity for the Warrants Outstanding [Abstract] | |||
Number of warrants outstanding | 599 | 2,183 | |
Weighted average exercise price | $1.83 | $1.85 | $1.60 |
Exercised | -305 | -1,584 | |
Exercised | $1,860 | $1,860 | |
Number of warrants outstanding | 294 | 599 | |
Weighted average exercise price | $1.79 | $1.83 | $1.60 |
Note_10_Consolidated_Statement2
Note 10 - Consolidated Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest Paid | $0 | $0 | $0 |
Income Taxes Paid | 0 | 0 | 0 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 100.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $0 | $0 | $0 |
Note_10_Consolidated_Statement3
Note 10 - Consolidated Statements of Cash Flows (Details) - Net Change in Non-Cash Working Capital Balances Related to Operations (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Change in Non-Cash Working Capital Balances Related to Operations [Abstract] | |||
Accounts receivable | $1,044 | ($2,650) | ($557) |
Due from related parties | 15 | -11 | |
Inventory | -2,101 | 978 | -965 |
Prepaid expenses | -166 | -302 | -197 |
Other current assets | 4 | 50 | -25 |
Other non-current assets | -117 | -12 | -27 |
Accounts payable | 1,340 | -436 | 849 |
Accrued liabilities | -147 | 1,329 | 146 |
Deferred rent/revenue | 106 | 67 | |
($37) | ($961) | ($787) |
Note_10_Consolidated_Statement4
Note 10 - Consolidated Statements of Cash Flows (Details) - Significant Non-Cash Transactions (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Non-Cash Transactions [Abstract] | |||
Common stock issued in consideration of management bonuses | $1,182 | ||
Reclass of warrant liabilities to Stockholders Equity upon cashless exercise of warrants | 2,616 | 13,297 | 4,014 |
Additions to fixed assets | $69 | $526 |
Note_11_Subsequent_Events_Deta
Note 11 - Subsequent Events (Details) (Subsequent Event [Member], CRG [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Mar. 04, 2015 |
Note 11 - Subsequent Events (Details) [Line Items] | |
Term Loan, Maximum Borrowing Capacity | 35 |
Proceeds from Issuance of Long-term Debt | 15 |
Term Loan, Remaining Borrowing Capacity | 20 |
Debt Instrument, Term | 6 years |
Debt Instrument, Interest Rate, Stated Percentage | 13.00% |
Interest Only Payments [Member] | |
Note 11 - Subsequent Events (Details) [Line Items] | |
Debt Instrument, Term | 4 years |
Note_12_Quarterly_Financial_Da2
Note 12 - Quarterly Financial Data (Unaudited) (Details) - Selected Consolidated Statement of Operations Data (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Selected Consolidated Statement of Operations Data [Abstract] | |||||||||||||||||||
Revenue(i) | $5,297 | [1] | $5,212 | [1] | $4,999 | [1] | $4,211 | [1] | $4,438 | [1] | $4,207 | [1] | $3,525 | [1] | $2,475 | [1] | $19,718 | $14,645 | $3,960 |
Loss from operations (i) | -7,083 | [1] | -6,114 | [1] | -5,885 | [1] | -5,922 | [1] | -5,504 | [1] | -3,829 | [1] | -5,279 | [1] | -3,162 | [1] | -25,004 | -17,774 | -12,032 |
Net loss (i) | ($6,941) | ($5,785) | ($5,439) | ($5,557) | ($4,151) | ($4,240) | ($12,025) | ($8,574) | ($23,722) | ($28,990) | ($19,312) | ||||||||
Weighted average number of shares outstanding basic(i) (in Shares) | 33,591,000 | [1] | 33,589,000 | [1] | 33,585,000 | [1] | 33,550,000 | [1] | 33,129,000 | [1] | 31,914,000 | [1] | 29,178,000 | [1] | 28,756,000 | [1] | 33,578,820 | 30,759,305 | 25,490,186 |
Net loss per common share basic (i) (in Dollars per share) | ($0.21) | [1] | ($0.17) | [1] | ($0.16) | [1] | ($0.17) | [1] | ($0.13) | [1] | ($0.13) | [1] | ($0.41) | [1] | ($0.30) | [1] | ($0.71) | ($0.94) | ($0.76) |
Weighted average number of shares outstanding diluted (in Shares) | 33,662,000 | 33,712,000 | 33,721,000 | 33,732,000 | 33,679,000 | 31,914,000 | 29,178,000 | 28,756,000 | 33,717,344 | 30,759,305 | 25,490,186 | ||||||||
Net loss per common share diluted (i) (in Dollars per share) | ($0.21) | [1] | ($0.18) | [1] | ($0.17) | [1] | ($0.17) | [1] | ($0.17) | [1] | ($0.13) | [1] | ($0.41) | [1] | ($0.30) | [1] | ($0.74) | ($0.94) | ($0.76) |
[1] | Net loss per share basic and diluted are computed independently for the quarters presented. Therefore, the sum of the quarterly per share information may not be equal to the annual per share information. Also totals may not add to the financial statements due to rounding. |
Schedule_II_Valuation_and_Qual1
Schedule II -- Valuation and Qualifying Accounts (Details) - Valuation and Qualifying Accounts (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Fiscal 2012 | |||
Balance at beginning of period | $415 | $36 | $42 |
Provision | 121 | 377 | 10 |
Write-ff and recoveries | -112 | 2 | -16 |
Balance at end of period | 424 | 415 | 36 |
Warranty Reserves [Member] | |||
Fiscal 2012 | |||
Balance at beginning of period | 180 | 107 | 36 |
Provision | 79 | 271 | 196 |
Write-ff and recoveries | -138 | -198 | -125 |
Balance at end of period | 121 | 180 | 107 |
Allowance for Sales Returns [Member] | |||
Fiscal 2012 | |||
Balance at beginning of period | 173 | 71 | 10 |
Provision | 126 | 474 | 102 |
Write-ff and recoveries | -376 | -372 | -41 |
Balance at end of period | $77 | $173 | $71 |