Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'CGIX | ' |
Entity Registrant Name | 'CANCER GENETICS, INC | ' |
Entity Central Index Key | '0001349929 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 9,265,384 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $9,878,176 | $819,906 |
Accounts receivable, net of allowance for doubtful accounts of $36,000 | 1,616,134 | 850,545 |
Other current assets | 713,127 | 489,278 |
Total current assets | 12,207,437 | 2,159,729 |
FIXED ASSETS, net of accumulated depreciation | 810,387 | 964,923 |
OTHER ASSETS | ' | ' |
Security deposits | 1,564 | 1,564 |
Restricted cash | 300,000 | 250,000 |
Loan guarantee and financing fees, net of accumulated amortization of 2013 $207,000; 2012 $929,498 | 621,000 | 1,907,502 |
Patents | 366,113 | 324,764 |
Deferred offering costs | ' | 3,343,289 |
Total other assets | 1,288,677 | 5,827,119 |
Total Assets | 14,306,501 | 8,951,771 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 1,807,081 | 4,578,761 |
Obligations under capital leases, current portion | 11,886 | 17,158 |
Deferred revenue | 215,023 | 468,010 |
Notes Payable, current portion | 43,622 | 3,836,567 |
Lines of credit | 6,000,000 | 2,871,200 |
Total current liabilities | 8,077,612 | 11,771,696 |
Obligations under capital leases | ' | 7,490 |
Deferred rent payable | 169,166 | 164,298 |
Notes payable, long-term | ' | 2,440,683 |
Lines of credit | ' | 6,000,000 |
Warrant liability | 1,178,000 | 12,549,000 |
Total liabilities | 9,424,778 | 32,933,167 |
STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Common stock, authorized 100,000,000 and 24,000,000 shares, respectively, $0.0001 par value, 5,965,340 and 1,349,936 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively | 597 | 135 |
Additional paid-in capital | 63,681,317 | 24,970,255 |
Treasury stock | ' | -17,442 |
Accumulated deficit | -58,800,191 | -48,934,585 |
Total Stockholders' Equity (Deficit) | 4,881,723 | -23,981,396 |
Total Liabilities and Stockholders' Equity (Deficit) | 14,306,501 | 8,951,771 |
Series A Preferred Stock [Member] | ' | ' |
STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Preferred Stock, value | ' | 59 |
Series B Preferred Stock [Member] | ' | ' |
STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Preferred Stock, value | ' | $182 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accounts receivable, allowance for doubtful accounts receivables | $36,000 | $36,000 |
Loan guarantee and financing fees, accumulated amortization | $207,000 | $929,498 |
Preferred stock, shares authorized | 9,764,000 | ' |
Common stock, shares authorized | 100,000,000 | 24,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares issued | 5,965,340 | 1,349,936 |
Common stock, shares outstanding | 5,965,340 | 1,349,936 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized | ' | 588,000 |
Preferred stock, par value | ' | $0.00 |
Preferred stock, shares issued | ' | 587,691 |
Preferred stock, shares outstanding | ' | 587,691 |
Series B Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized | ' | 2,000,000 |
Preferred stock, par value | ' | $0.00 |
Preferred stock, shares issued | ' | 1,821,600 |
Preferred stock, shares outstanding | ' | 1,821,600 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $1,705,146 | $1,242,604 | $4,755,462 | $3,225,831 |
Cost of revenues | 1,211,384 | 971,557 | 3,560,678 | 2,880,242 |
Gross profit | 493,762 | 271,047 | 1,194,784 | 345,589 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 433,525 | 501,431 | 1,384,122 | 1,551,672 |
Sales and marketing | 442,665 | 334,147 | 1,274,620 | 1,049,996 |
General and administrative | 1,297,801 | 1,145,649 | 4,259,175 | 3,475,301 |
Total operating expenses | 2,173,991 | 1,981,227 | 6,917,917 | 6,076,969 |
Loss from operations | -1,680,229 | -1,710,180 | -5,723,133 | -5,731,380 |
Other (expense) income: | ' | ' | ' | ' |
Interest expense | -356,442 | -1,312,232 | -2,039,750 | -3,260,010 |
Interest income | 3,295 | ' | 4,649 | ' |
Debt conversion costs | ' | ' | -6,849,830 | ' |
Change in fair value of warrant liability | -1,033,000 | 3,334,000 | 4,096,000 | 6,370,000 |
Total other (expense) income | -1,386,147 | 2,021,768 | -4,788,931 | 3,109,990 |
(Loss) income before income taxes | -3,066,376 | 311,588 | -10,512,064 | -2,621,390 |
Income tax provision (benefit) | ' | ' | -663,900 | ' |
Net (loss) income | ($3,066,376) | $311,588 | ($9,848,164) | ($2,621,390) |
Basic net (loss) income per share | ($0.61) | $0.23 | ($2.84) | ($1.96) |
Diluted net loss per share | ($0.61) | ($2.23) | ($4.02) | ($6.66) |
Basic Weighted Average Shares Outstanding | 5,055,591 | 1,346,124 | 3,463,730 | 1,340,530 |
Diluted Weighted Average Shares Outstanding | 5,055,591 | 1,355,678 | 3,468,627 | 1,350,084 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (USD $) | Total | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2012 | ($23,981,396) | $59 | $182 | $135 | $24,970,255 | ($17,442) | ($48,934,585) |
Balance (in shares) at Dec. 31, 2012 | ' | 587,691 | 1,821,600 | 1,349,936 | ' | ' | ' |
Stock based compensation-employees | 310,982 | ' | ' | ' | 310,982 | ' | ' |
Stock based compensation-non-employees | 76,220 | ' | ' | ' | 76,220 | ' | ' |
Conversion of preferred stock into common stock | ' | -59 | -182 | 129 | 112 | ' | ' |
Conversion of preferred stock into common stock (in shares) | ' | -587,691 | -1,821,600 | 1,287,325 | ' | ' | ' |
Conversion of debt into common stock | 12,596,066 | ' | ' | 96 | 12,595,970 | ' | ' |
Conversion of debt into common stock (in shares) | ' | ' | ' | 963,430 | ' | ' | ' |
Issuance of common stock in IPO, net of offering costs | 3,742,643 | ' | ' | 69 | 3,742,574 | ' | ' |
Issuance of common stock in IPO, net of offering costs (in shares) | ' | ' | ' | 690,000 | ' | ' | ' |
Issuance of common stock in Secondary Offering, net of offering costs | 14,230,372 | ' | ' | 161 | 14,230,211 | ' | ' |
Issuance of common stock in Secondary Offering, net of offering costs (in shares) | ' | ' | ' | 1,605,000 | ' | ' | ' |
Issuance of common stock pursuant to license agreement | 20,000 | ' | ' | ' | 20,000 | ' | ' |
Issuance of common stock pursuant to license agreement (in shares) | ' | ' | ' | 2,000 | ' | ' | ' |
Reclassification of derivative warrants | 7,170,000 | ' | ' | ' | 7,170,000 | ' | ' |
Exercise of warrants | 565,000 | ' | ' | 7 | 564,993 | ' | ' |
Exercise of warrants (in shares) | ' | ' | ' | 67,649 | ' | ' | ' |
Retirement of treasury stock | ' | ' | ' | ' | ' | 17,442 | -17,442 |
Net loss | -9,848,164 | ' | ' | ' | ' | ' | -9,848,164 |
Balance at Sep. 30, 2013 | $4,881,723 | ' | ' | $597 | $63,681,317 | ' | ($58,800,191) |
Balance (in shares) at Sep. 30, 2013 | ' | ' | ' | 5,965,340 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net (loss) | ($9,848,164) | ($2,621,390) |
Adjustments to reconcile net (loss) to net cash used in operating activities: | ' | ' |
Depreciation | 227,376 | 266,489 |
Amortization | 11,422 | 11,422 |
Provision for bad debts | ' | -528 |
Equity-based consulting and compensation expenses | 310,982 | 766,167 |
Equity-based research and development expenses | 96,220 | ' |
Change in fair value of warrant liability | -4,096,000 | -6,370,000 |
Extension of warrants | ' | 144,000 |
Amortization of loan guarantee and financing fees | 884,460 | 952,544 |
Accretion of discount on debt | 584,692 | 1,559,009 |
Deferred rent | 4,868 | 6,364 |
Deferred initial public offering costs expensed | 617,706 | ' |
Write-off of debt conversion costs | 6,849,830 | ' |
Change in working capital components: | ' | ' |
Accounts receivable | -765,589 | -149,870 |
Other current assets | -223,849 | -182,803 |
Accounts payable, accrued expenses and deferred revenue | -1,255,166 | -144,773 |
Net cash (used in) operating activities | -6,601,212 | -5,763,369 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchase of fixed assets | -72,840 | -33,540 |
Patent costs | -52,771 | -184,456 |
Increase in restricted cash | -50,000 | -50,000 |
Net cash (used in) investing activities | -175,611 | -267,996 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Principal payments on capital lease obligations | -12,762 | -32,005 |
Proceeds from initial public offering of common stock, net of offering costs | 4,984,025 | -1,190,609 |
Proceeds from secondary public offering of common stock, net of offering costs | 14,230,372 | ' |
Proceeds from warrant exercises | 192,000 | 619,980 |
Proceeds from borrowings on notes payable | ' | 5,120,000 |
Principal payments on notes payable | -3,558,542 | ' |
Net cash provided by financing activities | 15,835,093 | 4,517,366 |
Net increase (decrease) in cash and cash equivalents | 9,058,270 | -1,513,999 |
CASH AND CASH EQUIVALENTS | ' | ' |
Beginning | 819,906 | 2,417,256 |
Ending | 9,878,176 | 903,257 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | ' | ' |
Cash paid for interest | 570,601 | 761,458 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ' | ' |
Warrants issued for financing fees | 47,000 | 727,000 |
Warrants issued with debt | ' | 2,048,000 |
Warrants issued for debt guarantee fee | ' | 755,000 |
Accrued offering costs | ' | 1,384,123 |
Offering costs discounted | 733,250 | ' |
Accrued expenses reclassified as derivative warrant liability | 221,000 | 148,000 |
Accrued expenses recorded as financing fees | ' | 184,000 |
Retirement of treasury stock | 17,442 | ' |
Conversion of notes payable, lines of credit and accrued interest to common stock | 9,364,300 | ' |
Conversion of preferred stock to common stock | 241 | ' |
Reclassification of derivative warrants | 7,170,000 | ' |
Cashless exercise of derivative warrants | 373,000 | ' |
Reclassification of deferred offering costs to additional paid-in capital | $1,992,333 | ' |
Organization_Description_of_Bu
Organization, Description of Business, Reverse Stock Splits and Initial Public Offering | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Organization, Description of Business, Reverse Stock Splits and Initial Public Offering | ' | ||||||||
Note 1. Organization, Description of Business, Reverse Stock Splits and Initial Public Offering | |||||||||
We were incorporated in the State of Delaware on April 8, 1999 and have offices and a laboratory located in Rutherford, New Jersey. Our wholly owned subsidiary, Cancer Genetics Italia SRL (“CGI Italia”), manages the manufacturing and manufactures DNA probes. CGI Italia had approximately $349,000 and $329,000 in total assets at September 30, 2013 and December 31, 2012, respectively, and approximately $55,000 and $24,000 in total revenue for the three months ended September 30, 2013 and 2012, and approximately $147,000 and $60,000 in total revenue for the nine months ended September 30, 2013 and 2012 respectively. | |||||||||
We are a diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve the diagnosis, prognosis and response to treatment of cancer (theranosis). Our proprietary tests target cancers where prognosis information is critical and where predicting treatment outcomes using currently available techniques is limited. These cancers include hematological, urogenital and HPV-associated cancers. We have commercially launched MatBA® -CLL, -SLL, DLBCL and UroGenRA kidney as lab developed tests in the United States, and seek to provide our tests and services to oncologists and pathologists at hospitals, cancer centers and physician offices, as well as to biopharmaceutical companies and clinical research organizations for their clinical trials. | |||||||||
Reverse Stock Splits | |||||||||
On February 8, 2013, we filed a charter amendment with the Secretary of State for the State of Delaware and effected a 1-for-2 reverse stock split of our common stock. On March 1, 2013, we filed another charter amendment with the Secretary of State for the State of Delaware and effected a 1-for-2.5 reverse stock split of our common stock. All shares and per share information referenced throughout the consolidated financial statements have been retroactively adjusted to reflect both reverse stock splits. | |||||||||
Public Offerings | |||||||||
On April 10, 2013, we sold 690,000 shares of common stock at a public offering price of $10.00 per share and completed our initial public offering (“IPO”) with gross proceeds of $6.9 million (net proceeds of $5 million). Upon the closing of the IPO, all shares of our then-outstanding Series A and Series B convertible preferred stock automatically converted into an aggregate of 1,287,325 shares of common stock. Concurrent with the IPO, certain derivative warrants with a fair value of $7.2 million were reclassified into equity due to the lapsing of anti-dilution provisions in the warrants. Also concurrent with the IPO, $9.6 million of debt converted into 963,430 shares of common stock. All references to our Series A convertible preferred stock in this quarterly report on Form 10-Q refer collectively to the Series A and Series A-1 convertible preferred shares. | |||||||||
On August 19, 2013, we sold 1,500,000 shares of common stock at a public offering price of $10.00 per share resulting in gross proceeds of $15.0 million (net proceeds of $13.3 million). We used $3.5 million of the proceeds to repay certain indebtedness which was due on August 15, 2013 (see Note 4 for further discussion of the Company’s debt). On September 5, 2013, we sold 105,000 additional common shares pursuant to partial exercise of the underwriter’s over-allotment option which resulted in gross proceeds of $1.1 million (net proceeds of $947,000). All references to the sales of common stock mentioned in this paragraph are referred to as the “Secondary Offering” in this quarterly report on Form 10-Q. | |||||||||
Subsequent Event | |||||||||
On October 28, 2013, we sold 3,286,700 shares of common stock, (including the underwriter’s overallotment of 428,700 shares), at a public offering price of $14.00 per share resulting in gross proceeds of $46.0 million. Net proceeds of $42.2 million were available to us from the public offering and were determined as follows: | |||||||||
Gross proceeds (including over-allotment) | $ | 46,013,800 | |||||||
Underwriting discounts, expenses and commissions | (3,446,792 | ) | |||||||
Estimated other offering costs | (315,850 | ) | |||||||
Pro forma net proceeds | $ | 42,251,158 | |||||||
The following table summarizes certain actual balance sheet data and pro forma balance sheet data to reflect the activities related to our recent public offering noted above, as of September 30, 2013: | |||||||||
September 30, | Pro forma | ||||||||
2013 | September 30, | ||||||||
2013 | |||||||||
Cash and cash equivalents | $ | 9,878,176 | $ | 52,129,334 | |||||
Loan guarantee and financing fees | 621,000 | 621,000 | |||||||
Accounts payable and accrued expenses | 1,807,081 | 1,807,081 | |||||||
Notes payable, current portion | 43,622 | 43,622 | |||||||
Line of credit | 6,000,000 | 6,000,000 | |||||||
Warrant liability | 1,178,000 | 1,178,000 | |||||||
Common stock | 597 | 925 | |||||||
Additional paid-in capital | 63,681,317 | 105,932,147 | |||||||
Accumulated deficit | $ | (58,800,191 | ) | $ | (58,800,191 | ) |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
Note 2. Significant Accounting Policies | |||||||||||||||||
Basis of presentation: The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for interim reporting as they are prescribed by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2012 that are included in our prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, on October 23, 2013 (Prospectus). The consolidated balance sheet as of December 31, 2012, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. Interim financial results are not necessarily indicative of the results that may be expected for future interim periods or for the year ending December 31, 2013. | |||||||||||||||||
Liquidity/Going Concern: Our primary sources of liquidity have been funds generated from debt financing, the sale of shares of common and preferred stock, grants in lieu of federal income tax credits, National Institute of Health grants and sales of state NOL carryforwards. | |||||||||||||||||
We believe our cash resources, prior to our latest offering of common stock, which was consummated on October 28, 2013, were sufficient to satisfy our liquidity requirements at our current level of operations through September 2014 and assuming we are able to secure an extension of the $6.0 million of indebtedness due April 1, 2014 through March 2015. We have commenced negotiations with Wells Fargo and with Mr. Pappajohn, who serves as a guarantor for such outstanding indebtedness, to further extend the maturity date. However, there can be no assurances that we will be successful. If we are not successful in obtaining an extension, we expect that we would use a portion of the net proceeds received from our latest offering of common stock, which was consummated on October 28, 2013, to repay that debt. Including the funds raised through the offering of common stock which was consummated on October 28, 2013, we believe that our current cash resources are sufficient to satisfy our liquidity requirements for at least two years even if we are unable to secure an extension of the Wells Fargo debt. Our forecast of the period of time through which our financial resources will be adequate to support our operations and the costs to support our general and administrative, sales and marketing and research and development activities are forward-looking statements and involve risks and uncertainties. | |||||||||||||||||
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has suffered recurring losses from operations and had negative working capital at September 30, 2013. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Refer to the section entitled “Capital Resources and Expenditure Requirements” in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Form 10-Q of which these financial statements are a part. | |||||||||||||||||
Principles of consolidation: The accompanying consolidated financial statements include the accounts of Cancer Genetics, Inc. and our wholly owned subsidiary, Cancer Genetics Italia S.r.L. All significant intercompany account balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Use of estimates and assumptions: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, among others, realization of amounts billed, realization of long-lived assets, realization of intangible assets, accruals for registration payments and assumptions used to value stock options and warrants. Actual results could differ from those estimates. | |||||||||||||||||
Risks and uncertainties: We operate in an industry that is subject to intense competition, government regulation and rapid technological change. Our operations are subject to significant risk and uncertainties including financial, operational, technological, regulatory and other risks, including the potential risk of business failure. | |||||||||||||||||
Cash and cash equivalents: Highly liquid investments with original maturities of three months or less when purchased are considered to be cash equivalents. Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents. We maintain cash and cash equivalents with high-credit quality financial institutions. At times, such amounts may exceed insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on our cash and cash equivalents. | |||||||||||||||||
Revenue recognition: Revenue is recognized in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, Revenue Recognition, and ASC 954-605 Health Care Entities, Revenue Recognition which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred and title and the risks and rewards of ownership have been transferred to the customer or services have been rendered; (3) the price is fixed or determinable; and (4) collectability is reasonably assured. In determining whether the price is fixed or determinable, we consider payment limits imposed by insurance carriers and Medicare and the amount of revenue recorded takes into account the historical percentage of revenue we have collected for each type of test for each payor category. Periodically, an adjustment is made to revenue to record differences between our anticipated cash receipts from insurance carriers and Medicare and actual receipts from such payors. For the periods presented, such adjustments were not significant. For direct bill customers (including clinical trials customers), revenue is recorded based upon the contractually agreed upon fee schedule. When assessing collectability, we consider whether we have sufficient payment history to reliably estimate a payor’s individual payment patterns. For new tests where there is no evidence of payment history at the time the tests are completed, we only recognize revenues once reimbursement experience can be established. We then recognize revenue equal to the amount of cash received. Sales of probes are recorded on the shipping date. We do not bill customers for shipping and handling fees and do not collect any sales or other taxes. | |||||||||||||||||
Revenues from grants to support product development are recognized when costs and expenses under the terms of the grant have been incurred and payments under the grants become contractually due. | |||||||||||||||||
Accounts receivable: Accounts receivable are carried at original invoice amount less an estimate for contractual adjustments and doubtful receivables, the amounts of which are determined by an analysis of individual accounts. Our policy for assessing the collectability of receivables is dependent upon the major payor source of the underlying revenue. For direct bill clients, an assessment of credit worthiness is performed prior to initial engagement and is reassessed periodically. If deemed necessary, an allowance is established on receivables from direct bill clients. For insurance carriers where there is not an established pattern of collection, revenue is not recorded until cash is received. For receivables where insurance carriers have made payments to patients instead of directing payments to the Company, an allowance is established for a portion of such receivables. After reasonable collection efforts are exhausted, amounts deemed to be uncollectible are written off against the allowance for doubtful accounts. Since the Company only recognizes revenue to the extent it expects to collect such amounts, bad debt expense related to receivables from patient service revenue is recorded in general and administrative expense in the consolidated statement of operations. Recoveries of accounts receivable previously written off are recorded when received. | |||||||||||||||||
Deferred Offering costs: Deferred offering costs represent legal, accounting and other direct costs related to our effort to raise capital through a stock offering. Future costs related to our offering activities will be deferred until the completion of the offering, at which time they will be reclassified to additional paid-in capital as a reduction of the offering proceeds. In connection with our IPO, $617,706 in deferred offering costs were expensed and approximately $2.5 million in deferred offering costs were reclassified to additional paid-in capital. Additionally, $733,250 in deferred offering costs were reduced due to discounts given by vendors associated with that offering and $120,000 was refunded. In connection with our Secondary Offering, we incurred $1.8 million in offering costs, all of which were reclassified to additional paid-in-capital. | |||||||||||||||||
Warrant liability: We have issued certain warrants which contain an exercise price adjustment feature in the event we issue additional equity instruments at a price lower than the exercise price of the warrant. The warrants are described herein as derivative warrants. We account for these derivative warrants as liabilities. These common stock purchase warrants do not trade in an active securities market, and as such, we estimate the fair value of these warrants using the binomial lattice valuation pricing model with the assumptions as follows: The risk-free interest rate for periods within the contractual life of the warrant is based on the U.S. Treasury yield curve. The expected life of the warrants is based upon the contractual life of the warrants. Volatility is estimated based on an average of the historical volatilities of the common stock of four entities with characteristics similar to those of the Company. Prior to our IPO, the measurement date fair value of the underlying common shares was based upon an external valuation of our shares. (See Notes 8 and 9). Subsequent to the IPO and Secondary Offering, we use the closing price of our shares on the OTC Bulletin Board and the NASDAQ Capital Market, respectively. | |||||||||||||||||
We compute the fair value of the warrant liability at each reporting period and the change in the fair value is recorded as non-cash expense or non-cash income. The key component in the value of the warrant liability is our stock price, which is subject to significant fluctuation and is not under our control. The resulting effect on our net income (loss) is therefore subject to significant fluctuation and will continue to be so until the warrants are exercised, amended or expire. Assuming all other fair value inputs remain constant, we will record non-cash expense when the stock price increases and non-cash income when the stock price decreases. | |||||||||||||||||
Income taxes: Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist of taxes currently due plus deferred income taxes. Deferred income taxes are recognized for temporary differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Deferred income taxes are also recognized for net operating loss carryforwards that are available to offset future taxable income and research and development credits. On January 22, 2013, we sold certain state net operating loss carryforwards. The proceeds of $663,900 are included in our income tax benefit for the nine months ended September 30, 2013. | |||||||||||||||||
Registration payment arrangements: We account for our obligations under registration payment arrangements in accordance with ASC 825-20, Registration Payment Arrangements. ASC 825-20 requires us to record a liability if we determine a registration payment is probable and if it can reasonably be estimated. As of September 30, 2013 and December 31, 2012, we have an accrued liability of $300,000 and $541,000, respectively, related to registration rights obligations associated with the issuance of Series B preferred stock and certain notes payable. | |||||||||||||||||
Stock-based compensation: Stock-based compensation is accounted for in accordance with the provisions of ASC 718, Compensation-Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. We estimate the fair value of stock-based awards on the date of grant using the Black-Scholes option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. See additional information in Note 7. | |||||||||||||||||
All issuances of stock options or other issuances of equity instruments to employees as the consideration for services received by us are accounted for based on the fair value of the equity instrument issued. | |||||||||||||||||
We account for stock-based compensation awards to non-employees in accordance with ASC 505-50, Equity Based Payments to Non-Employees. Under ASC 505-50, we determine the fair value of the warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. Stock-based compensation awards issued to non-employees are recorded in expense and additional paid-in capital in stockholders’ deficit over the applicable service periods based on the fair value of the awards or consideration received at the vesting date. | |||||||||||||||||
Subsequent events: We have evaluated potential subsequent events through November 13, 2013, which is the date the financial statements were issued. | |||||||||||||||||
Earnings (loss) per share: Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares assumed to be outstanding during the period of computation. Diluted earnings per share is computed similar to basic earnings per share except that the numerator is adjusted for the change in fair value of the warrant liability (only if dilutive) and the denominator is increased to include the number of dilutive potential common shares outstanding during the period using the treasury stock method. | |||||||||||||||||
Basic net income (loss) and diluted net loss per share data were computed as follows: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) for basic earnings per share | $ | (3,066,376 | ) | $ | 311,588 | $ | (9,848,164 | ) | $ | (2,621,390 | ) | ||||||
Less gain in fair value of warrant liability | — | 3,334,000 | 4,096,000 | 6,370,000 | |||||||||||||
Net (loss) for diluted earnings per share | $ | (3,066,376 | ) | $ | (3,022,412 | ) | $ | (13,944,164 | ) | $ | (8,991,390 | ) | |||||
Denominator: | |||||||||||||||||
Weighted-average basic common shares outstanding | 5,055,591 | 1,346,124 | 3,463,730 | 1,340,530 | |||||||||||||
Assumed conversion of dilutive securities: | |||||||||||||||||
Common stock purchase warrants | — | 9,554 | 4,897 | 9,554 | |||||||||||||
Potentially dilutive common shares | — | 9,554 | 4,897 | 9,554 | |||||||||||||
Denominator for diluted earnings per share—adjusted weighted-average shares | 5,055,591 | 1,355,678 | 3,468,627 | 1,350,084 | |||||||||||||
Basic net income (loss) per share | $ | (0.61 | ) | $ | 0.23 | $ | (2.84 | ) | $ | (1.96 | ) | ||||||
Diluted net loss per share | $ | (0.61 | ) | $ | (2.23 | ) | $ | (4.02 | ) | $ | (6.66 | ) | |||||
The following table summarizes potentially dilutive adjustments to the weighted average number of common shares which were excluded from the calculation: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Common stock purchase warrants | 1,843,582 | 955,458 | 1,843,582 | 955,458 | |||||||||||||
Stock options | 506,294 | 553,580 | 506,294 | 553,580 | |||||||||||||
Common shares issuable upon conversion of Series A Preferred Stock | — | 352,614 | — | 352,614 | |||||||||||||
Common shares issuable upon conversion of Series B Preferred Stock | — | 364,320 | — | 364,320 | |||||||||||||
2,349,876 | 2,225,972 | 2,349,876 | 2,225,972 | ||||||||||||||
Revenue_and_Accounts_Receivabl
Revenue and Accounts Receivable | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Revenue and Accounts Receivable | ' | ||||||||||||||||
Note 3. Revenue and Accounts Receivable | |||||||||||||||||
Revenue by payor type for the three and nine months ended September 30, 2013 and 2012 is comprised of the following: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Medicare | $ | 229,723 | $ | 178,291 | $ | 637,838 | $ | 586,896 | |||||||||
Direct bill (including clinical trials clients) | 1,060,684 | 473,965 | 2,798,883 | 1,158,212 | |||||||||||||
Grants and royalty | 100,000 | 279,973 | 100,000 | 474,973 | |||||||||||||
Insurance carrier and all others | 314,739 | 310,375 | 1,218,741 | 1,005,750 | |||||||||||||
$ | 1,705,146 | $ | 1,242,604 | $ | 4,755,462 | $ | 3,225,831 | ||||||||||
Accounts receivable by payor type at September 30, 2013 and December 31, 2012 consists of the following: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Medicare | $ | 520,153 | $ | 193,024 | |||||||||||||
Direct bill (including clinical trials clients) | 585,034 | 339,763 | |||||||||||||||
Insurance carrier and all others | 546,947 | 353,758 | |||||||||||||||
Allowance for doubtful accounts | (36,000 | ) | (36,000 | ) | |||||||||||||
$ | 1,616,134 | $ | 850,545 | ||||||||||||||
We have historically derived a significant portion of our revenue from a limited number of test ordering sites. Our test ordering sites are largely hospitals, cancer centers, reference laboratories and physician offices, as well as biopharmaceutical companies as part of a clinical trial. Oncologists and pathologists at these sites order the tests on behalf of the needs of their oncology patients or as part of a clinical trial sponsored by a biopharmaceutical company in which the patient is being enrolled. We generally do not have formal, long-term written agreements with such test ordering sites, and, as a result, we may lose these significant test ordering sites at any time. | |||||||||||||||||
The top five test ordering sites during the three months ended September 30, 2013 and 2012 accounted for 75% and 61% respectively, of our clinical testing volumes, with 36% and 56% respectively, of the volume coming from community hospitals. During the three months ended September 30, 2013, there were two sites which accounted for more than 10% of our revenue: a clinical trial client accounted for approximately 44% of our revenue, and; a community hospital accounted for approximately 10%. During the three months ended September 30, 2012, there were three sites which each accounted for 10% or more of our clinical revenue: a clinical trial client accounted for approximately 15%; a university teaching center accounting for approximately 12%, and; a community hospital network accounted for approximately 10%. | |||||||||||||||||
The top five test ordering sites during the nine months ended September 30, 2013 and 2012 accounted for 71% and 61%, respectively, of our clinical testing volumes, with 37% and 47%, respectively, of the volume coming from community hospitals. During the nine months ended September 30, 2013, there was one site which accounted for more than 10% of our revenue: a clinical trial client accounted for approximately 40% of our revenue. During the nine months ended September 30, 2012, there were three sites which each accounted for approximately 10% or more of our clinical revenue: a university teaching center accounting for approximately 15%; a clinical trial client accounted for approximately 12%, and; a community hospital accounted for approximately 11%. |
Notes_Payable_and_Lines_of_Cre
Notes Payable and Lines of Credit | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Notes Payable and Lines of Credit | ' | ||||||||
Note 4. Notes Payable and Lines of Credit | |||||||||
Below is a summary of our short-term and long-term debt obligations as of September 30, 2013 and December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
December 2011 Financing Transaction | $ | — | $ | 4,000,000 | |||||
Secured Note Payable, short-term | 43,622 | 79,867 | |||||||
Unamortized debt discount | — | (243,300 | ) | ||||||
Notes Payable, Current Portion | $ | 43,622 | $ | 3,836,567 | |||||
Lines of Credit, Current Portion | $ | 6,000,000 | $ | 3,000,000 | |||||
Unamortized Debt Discount | — | (128,800 | ) | ||||||
Lines of Credit, Current Portion | $ | 6,000,000 | $ | 2,871,200 | |||||
December 2011 Financing Transaction | $ | — | $ | 2,000,000 | |||||
2012 Convertible Debt Financing Transaction | — | 3,000,000 | |||||||
December 2012 Bridge Financing Transaction | — | 1,000,000 | |||||||
Other Note Payable | — | 100,000 | |||||||
Secured Note Payable | — | 22,298 | |||||||
Unamortized debt discount | — | (3,681,615 | ) | ||||||
Notes Payable, Long-Term | $ | — | $ | 2,440,683 | |||||
Lines of Credit, Long-Term | $ | — | $ | 6,000,000 | |||||
Business Line of Credit — Wells Fargo | |||||||||
At September 30, 2013 and December 31, 2012, we have fully utilized a line of credit with Wells Fargo Bank which provides for maximum borrowings of $6 million. Interest on the line of credit is due monthly equal to 1.75% above the Daily One Month LIBOR rate (2.0% at September 30, 2013). The line of credit requires the repayment of principal, and any unpaid interest, in a single payment due upon maturity. The line of credit matures April 1, 2014, is guaranteed by Mr. Pappajohn, and is collateralized by a first lien on all of our assets including the assignment of our approved and pending patent applications. | |||||||||
Secured Note Payable | |||||||||
On September 25, 2012, we entered into a note payable secured by lab equipment due March 25, 2014. The note requires monthly payments of principal and interest at 18% per annum. At September 30, 2013, and December 31, 2012, $43,622 and $102,165 was outstanding under the note. | |||||||||
Conversion of Debt concurrent with IPO | |||||||||
On April 10, 2013, we completed our IPO and converted the following indebtedness into shares of common stock at the IPO price of $10.00 per share: | |||||||||
Converted Amount | Common Shares | ||||||||
December 2011 Financing Transaction | $ | 4,500,000 | 450,000 | ||||||
2012 Convertible Debt Financing Transaction | 3,000,000 | 300,000 | |||||||
December 2012 Bridge Financing Transaction | 1,000,000 | 100,000 | |||||||
Business Lines of Credit (DAM) | 1,000,000 | 100,000 | |||||||
Other Note Payable and accrued interest | 134,300 | 13,430 | |||||||
$ | 9,634,300 | 963,430 | |||||||
In connection with the conversion of debt into common stock, we expensed the applicable remaining debt discounts of $3.5 million, financing fees of $419,000 and a contingently recognizable beneficial conversion feature in the converted debt of $3 million. | |||||||||
December 2011 Financing Transaction | |||||||||
At September 30, 2013 and December 31, 2012, $0.0 and $6.0 million, respectively, was outstanding under a Credit Agreement dated as of December 21, 2011, as amended and restated as of February 13, 2012. | |||||||||
The Credit Agreement was with John Pappajohn and Andrew Pecora (indirectly through an investment company), both members of our board of directors, and NNJCA Capital, LLC (“NNJCA”), a limited liability company of which Dr. Pecora is a member. Mr. Pappajohn originally provided $4.0 million of financing, NNJCA originally provided $1.5 million of financing and Dr. Pecora provided $500,000 of financing under the Credit Agreement. On April 10, 2013, Mr. Pappajohn converted $4.0 million and NNJCA converted $500,000 into 450,000 shares of our common stock at the IPO price of $10.00 per share concurrent with our IPO. The remaining outstanding balance of $1.5 million was repaid on August 19, 2013 using a portion of the proceeds from our Secondary Offering. | |||||||||
The loan bore an annual interest rate equal to the prime rate plus 6.25% (9.50% at August 19, 2013). We accrued a fee due to Pecora and NNJCA of $130,000 of which $32,667 was paid upon conversion of the notes and the remaining balance paid on August 19, 2013. The loan was secured by all of our assets, including our intellectual property, subject to prior first and second liens in favor of Wells Fargo Bank and DAM Holdings, LLC (“DAM”). | |||||||||
2012 Convertible Debt Financing Transaction | |||||||||
On April 10, 2013, the entire $3 million outstanding under a Restated Credit Agreement dated as of August 27, 2012, as amended and restated as of October 17, 2012, ($1,750,000 provided by Mr. Pappajohn and $1,250,000 provided by Mr. Oman) was converted into 300,000 shares of common stock at the IPO price of $10 per share. | |||||||||
Through April 10, 2013, the loan bore interest at the prime rate plus 6.25% (9.50% at April 10, 2013). In February 2013, because we did not consummate our IPO within 181 days of funding, the lenders received ten-year warrants to purchase an aggregate of 7,059 shares of our common stock (issued in proportion to their respective funding amounts) with an exercise price equal to the lesser of (i) $42.50 per share or (ii) the IPO price per share, which was $10.00. Pursuant to a subsequent agreement, described below, the warrants held by Mr. Pappajohn have an exercise price of $15.00 per share. The warrant exercise price is subject to standard anti-dilution protection in the event of stock splits, stock dividends, stock combinations, reclassifications and the like. | |||||||||
December 2012 Bridge Financing Transaction | |||||||||
On April 10, 2013, the entire $1 million outstanding under a credit agreement dated as of December 7, 2012, (all of which was provided by Mr. Pappajohn), was converted into 100,000 shares of common stock at the IPO price of $10.00 per share. | |||||||||
Through April 10, 2013, the loan bore interest at the prime rate plus 6.25% (9.50% at April 10, 2013). The credit agreement required Mr. Pappajohn to convert the outstanding principal balance into shares of our common stock at a conversion price equal to the lesser of $42.50 or our IPO price and as a result all debt was converted on April 10, 2013 at the IPO price of $10.00 per share. In March 2013, Mr. Pappajohn received ten-year warrants to purchase an aggregate of 2,353 shares of our common stock with an exercise price equal to the lesser of (i) $42.50 per share or (ii) the IPO or merger price per share, because we did not consummate our IPO by March 7, 2013. Mr. Pappajohn subsequently agreed that if our final IPO price was below $15.00, there would be no further adjustment to the price or number of shares covered by the warrants held by him. The warrant exercise price is subject to standard anti-dilution protection in the event of stock splits, stock dividends, stock combinations, reclassifications and the like. | |||||||||
Business Line of Credit – DAM | |||||||||
At September 30, 2013 and December 31, 2012, $0.0 million and $3 million, respectively, were outstanding under a line of credit agreement with DAM. | |||||||||
On April 10, 2013, $1 million of indebtedness under this line was converted into 100,000 shares of common stock at the IPO price of $10 per share. The remaining outstanding balance of $2.0 million was repaid on August 19, 2013 using a portion of the proceeds from our Secondary Offering. | |||||||||
Pursuant to an intercreditor agreement between Mr. Pappajohn and DAM (the “Intercreditor Agreement”), we were required to use the proceeds from our IPO to repay the full amount outstanding under the DAM Loan Agreement before any proceeds can be used to repay any debt outstanding under the Wells Fargo Line of Credit. On February 13, 2013, DAM agreed to convert $1.0 million which had been due April 1, 2013 of outstanding indebtedness into shares of common stock at the IPO price per share. We had accrued a fee due to DAM of $52,500 which was paid upon conversion of the line of credit. On March 19, 2013, the maturity date for $2 million of the DAM debt was extended to mature on August 15, 2013. The DAM debt bore an annual interest rate of 10% payable in equal monthly installments. | |||||||||
Other Note Payable | |||||||||
At December 31, 2012, notes payable included a $100,000 note payable to Dr. Chaganti, our Chairman of the Board. Accrued interest at December 31, 2012 was approximately $34,300. The note bore interest at 8.5% per annum. On April 10, 2013, the note and accrued interest converted into 13,430 shares of common stock at the IPO price of $10.00 per share. |
Letter_of_Credit
Letter of Credit | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Letter of Credit | ' |
Note 5. Letter of Credit | |
Pursuant to the terms of our lease for our Rutherford facility, during the second fiscal quarter of 2013 we restricted an additional $50,000 in cash in addition to the $250,000 that was previously restricted in order to secure a $300,000 letter of credit in favor of our landlord. |
Capital_Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
Capital Stock | ' |
Note 6. Capital Stock | |
On April 10, 2013, we completed our IPO in which we issued and sold 690,000 shares of common stock (including the underwriter’s overallotment of 90,000 shares) at a public offering price of $10.00 per share. In connection with the offering, all outstanding shares of Series A preferred stock were converted into 376,525 shares of common stock, and all outstanding shares of Series B preferred stock were converted into 910,800 shares of common stock. Concurrent with the IPO, we issued 2,000 shares of common stock to Cleveland Clinic pursuant to our license agreement with Cleveland Clinic. | |
On August 19, 2013, we sold 1,500,000 shares of common stock at a public offering price of $10.00 per share resulting in gross proceeds of $15.0 million ($13.3 million of net proceeds after offering expenses and underwriting discounts). | |
On September 5, 2013, we sold 105,000 additional common shares pursuant to the underwriter’s partial exercise of the over-allotment option which resulted in gross proceeds of $1.1 million ($947,000 of net proceeds after offering expenses and underwriting discounts). | |
We are currently authorized to issue up to 9,764,000 shares of preferred stock. | |
Subsequent Event | |
On October 28, 2013, we sold 3,286,700 shares of common stock, (including the underwriter’s overallotment of 428,700 shares), at a public offering price of $14.00 per share resulting in gross proceeds of $46.0 million (net proceeds of $42.2 million). |
Stock_Option_Plans
Stock Option Plans | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||
Stock Option Plans | ' | ||||||||||||||||||||
Note 7. Stock Option Plans | |||||||||||||||||||||
We have two equity incentive plans: the 2008 Stock Option Plan (the “2008 Plan”) and the 2011 Equity Incentive Plan (the “2011 Plan”, and together with the 2008 Plan, the “Stock Option Plans”). The 2011 Plan was approved by the Board of Directors on June 30, 2011 and was subsequently ratified by stockholders. The 2011 Plan authorizes the issuance of up to 350,000 shares of common stock under several types of equity awards including stock options, stock appreciation rights, restricted stock awards and other awards defined in the 2011 Plan. There have been no awards under the 2011 Plan. | |||||||||||||||||||||
The Board of Directors adopted the 2008 Plan on April 29, 2008 and reserved 251,475 shares of common stock for issuance under the plan. On April 1, 2010, the stockholders voted to increase the number of shares reserved by the plan to 550,000. The 2008 Plan is meant to provide additional incentive to officers, employees and consultants to remain in our employment. We are authorized to issue incentive stock options or non-statutory stock options to eligible participants. Options granted are generally exercisable for up to 10 years. | |||||||||||||||||||||
At September 30, 2013, 91,706 shares remain available for future awards under the 2008 Plan and 350,000 shares remain available for future awards under the 2011 Plan. | |||||||||||||||||||||
As of September 30, 2013, no stock appreciation rights, restricted stock, or awards other than stock options had been awarded under the Stock Option Plans. | |||||||||||||||||||||
We have also issued 48,000 options outside of the Stock Option Plans. | |||||||||||||||||||||
The Board of Directors authorized an offer to certain employee options holders on the following terms: those employees holding stock options with a strike price of $25.00 or more had the opportunity to exchange their options for 60% of the number of options currently held with an exercise price equal to the IPO price, which was $10.00 per share, and those employees holding stock options with a strike price of $12.50 had the opportunity to exchange their options for 80% of the number of options currently held with an exercise price equal to the IPO price which was $10.00 per share. On April 5, 2013, our initial public offering became effective and 336,300 options with exercise prices ranging from $12.50 to $33.80 were exchanged for 242,070 options with an exercise price of $10.00. In addition, 53,500 options which were approved to be issued and priced at the IPO price were issued to employees with an exercise price of $10.00 per share. | |||||||||||||||||||||
On April 17, 2013, we issued 5,850 options to employees with an exercise price of $11.75 per share as approved by the Board of Directors. | |||||||||||||||||||||
A summary of employee and nonemployee stock option activity for year ended December 31, 2012 and the nine months ended September 30, 2013 is as follows: | |||||||||||||||||||||
Options Outstanding | Weighted- | Aggregate | |||||||||||||||||||
Average | Intrinsic | ||||||||||||||||||||
Remaining | Value | ||||||||||||||||||||
Contractual | |||||||||||||||||||||
Number of | Weighted- | Term (in years) | |||||||||||||||||||
Shares | Average | ||||||||||||||||||||
Exercise | |||||||||||||||||||||
Price | |||||||||||||||||||||
Outstanding January 1, 2012 | 559,990 | $ | 12.85 | 8.1 | $ | 11,737,710 | |||||||||||||||
Granted | 2,400 | 33.8 | |||||||||||||||||||
Cancelled or expired | (9,050 | ) | 23.43 | ||||||||||||||||||
Outstanding December 31, 2012 | 553,340 | $ | 12.76 | 7.13 | $ | 1,142,432 | |||||||||||||||
Granted | 59,350 | 10.17 | |||||||||||||||||||
Cancelled or expired | (106,396 | ) | 20.46 | ||||||||||||||||||
Outstanding September 30, 2013 | 506,294 | $ | 7.6 | 6.53 | $ | 6,407,644 | |||||||||||||||
Exercisable, September 30, 2013 | 393,580 | $ | 7 | 6.24 | $ | 5,220,243 | |||||||||||||||
Aggregate intrinsic value represents the difference between the estimated fair value of our common stock and the exercise price of outstanding, in-the-money options. The estimated fair value of our common stock was $20.26 and $9.60 as of September 30, 2013 and December 31, 2012, respectively. No options were exercised during the nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, total unrecognized compensation cost related to nonvested stock options granted to employees was $768,129 and $846,810 respectively, which we expect to recognize over the next 2.57 and 2.61 years, respectively. | |||||||||||||||||||||
As of September 30, 2013 there was no unrecognized compensation cost related to nonvested stock options granted to non-employees. As of December 31, 2012, total unrecognized compensation cost related to nonvested stock options granted to non-employees was $190,500, which was recognized over the first six months of 2013. The estimate of unrecognized nonemployee compensation is based on the fair value of the nonvested options as of December 31, 2012. | |||||||||||||||||||||
The following table summarizes information about outstanding and vested stock options granted to employees and non-employees as of September 30, 2013 as follows: | |||||||||||||||||||||
Options Outstanding | Options Vested | ||||||||||||||||||||
and Exercisable | |||||||||||||||||||||
Exercise Price | Number of | Weighted- | Weighted- | Number of | Weighted- | ||||||||||||||||
Shares | Average | Average | Shares | Average | |||||||||||||||||
Outstanding | Remaining | Exercise | Exercise | ||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||
Life (in years) | |||||||||||||||||||||
4 | 175,000 | 5.58 | $ | 4 | 175,000 | $ | 4 | ||||||||||||||
4.8 | 33,340 | 6.3 | 4.8 | 25,459 | 4.8 | ||||||||||||||||
10 | 292,154 | 7.06 | 10 | 193,011 | 10 | ||||||||||||||||
11.75 | 5,600 | 9.54 | 11.75 | — | 11.75 | ||||||||||||||||
12.5 | 200 | 7.19 | 12.5 | 110 | 12.5 | ||||||||||||||||
Total | 506,294 | 6.53 | $ | 7.6 | 393,580 | $ | 7 | ||||||||||||||
The fair value of options granted to employees is estimated on the grant date using the Black-Scholes option valuation model. This valuation model for stock-based compensation expense requires us to make assumptions and judgments about the variables used in the calculation, including the fair value of our common stock (see Note 9), the expected term (the period of time that the options granted are expected to be outstanding), the volatility of our common stock, a risk-free interest rate, and expected dividends. We also estimate forfeitures of unvested stock options. To the extent actual forfeitures differ from the estimates, the difference will be recorded as a cumulative adjustment in the period estimates are revised. No compensation cost is recorded for options that do not vest. We use the simplified calculation of expected life described in the SEC’s Staff Accounting Bulletin No. 107, Share-Based Payment, and volatility is based on an average of the historical volatilities of the common stock of four entities with characteristics similar to those of the Company. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. We use an expected dividend yield of zero, as we do not anticipate paying any dividends in the foreseeable future. Expected forfeitures are assumed to be zero due to the small number of plan participants and the plan design which has monthly vesting after an initial cliff vesting period. | |||||||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair value of options granted to employees during the periods presented: | |||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Volatility | 77.11 | % | 77.39 | % | |||||||||||||||||
Risk free interest rate | 0.76 | % | 1.43 | % | |||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||||||
Term (years) | 5.95 | 6.5 | |||||||||||||||||||
Weighted-average fair value of options granted during the period | $ | 6.72 | $ | 9.34 | |||||||||||||||||
There were no options granted during the three months ended September 30, 2013 and 2012. | |||||||||||||||||||||
In 2010, we issued an aggregate of 80,000 options to non-employees with an exercise price of $25.00. As described above, on April 5, 2013, these options were exchanged for 48,000 options with an exercise price of $10.00. The following table presents the weighted-average assumptions used to estimate the fair value of options reaching their measurement date for non-employees during the periods presented: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Volatility | 75.32 | % | 75.23 | % | 75.87 | % | 75.01 | % | |||||||||||||
Risk free interest rate | 1.93 | % | 1.04 | % | 1.4 | % | 1.31 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||
Term (years) | 7.21 | 8.1 | 7.5 | 8.35 | |||||||||||||||||
The following table presents the effects of stock-based compensation related to stock option awards to employees and nonemployees on our Statement of Operations during the periods presented: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Cost of revenues | $ | 8,442 | $ | 1,126 | $ | 22,621 | $ | 9,557 | |||||||||||||
Research and development | 28,516 | 120,183 | 119,314 | 389,295 | |||||||||||||||||
General and administrative | 71,268 | 62,426 | 223,535 | 223,150 | |||||||||||||||||
Sales and marketing | 9,107 | 17,748 | 41,731 | 144,165 | |||||||||||||||||
Total stock-based compensation | $ | 117,333 | $ | 201,483 | $ | 407,202 | $ | 766,167 | |||||||||||||
Subsequent Events | |||||||||||||||||||||
On October 3, 2013, the Company received $1,640 from a former employee who exercised options to purchase 164 shares of common stock at $10.00 per share. | |||||||||||||||||||||
On October 8, 2013, the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) granted eight employees incentive stock options to purchase a total of 19,600 shares of the Company’s common stock at an exercise price of $19.88 per share (the closing price of a share of common stock on The NASDAQ Capital Market on October 7, 2013). The options are scheduled to vest over a period of five years. | |||||||||||||||||||||
On October 10, 2013 (the “Grant Date”), the Compensation Committee granted each the Company’s Chief Executive Officer and Vice President Research and Development an option to purchase 200,000 shares and 10,000 shares, respectively, of the Company’s common stock at an exercise price of $15.39 per share (the closing price of a share of common stock on The NASDAQ Capital Market on the business day immediately prior to the Grant Date). The options are scheduled to expire on the tenth anniversary of the Grant Date and are scheduled to vest over a period of five years from the Grant Date. The vesting of the option granted to the Chief Executive Officer may be accelerated upon the achievement of certain milestones. In addition, the Company committed to issue 50,000 restricted shares of common stock to the Chief Executive Officer. | |||||||||||||||||||||
On October 10, 2013, the Company granted each non-employee director, other than the chairman of the board, options to purchase 10,000 shares of Common Stock at an exercise price of $15.39 (the closing price of a share of common stock on The NASDAQ Capital Market on October 9, 2013), resulting in a total grant of 60,000 options. In addition, the Company granted Mr. Brownlie, the chairman of the audit committee, options to purchase 12,312 shares of Common Stock at an exercise price of $15.39 and the Company granted Mr. Thompson 2,500 fully vested shares of restricted stock in recognition of his past service as chairman of the audit committee. | |||||||||||||||||||||
On October 10, 2013, the Compensation Committee granted 12 employees incentive stock options to purchase a total of 77,000 shares of the Company’s common stock at an exercise price of $15.39 per share (the closing price of a share of common stock on The NASDAQ Capital Market on October 9, 2013). The options are scheduled to vest over a period of five years. | |||||||||||||||||||||
On October 10, 2013, the Company’s board of directors adopted a compensation policy for its non-employee directors, other than the chairman of the board who is compensated pursuant to the terms of a separate consulting agreement. This policy provides for the following cash compensation to the Company’s non-employee directors, other than the chairman of the board: | |||||||||||||||||||||
• | each non-employee director will receive an annual base fee of $10,000; and | ||||||||||||||||||||
• | in addition to the $10,000 annual base fee, the chairman of the audit committee will receive an annual fee of $10,000. | ||||||||||||||||||||
This policy provides for the following equity compensation to the Company’s non-employee directors, other than our chairman of the board: | |||||||||||||||||||||
• | each non-employee director, other than the chairman of the board, will receive bi-annual restricted stock awards of 5,000 shares of common stock; and | ||||||||||||||||||||
• | each non-employee director, other than the chairman of the board, will receive annual option grants to purchase 10,000 shares of common stock. | ||||||||||||||||||||
The restricted stock awards and option grants will each vest in two equal annual installments. Equity grants under the director compensation policy are subject to the adoption of a new equity plan or amendment to increase the shares available for issuance under the 2011 Plan. | |||||||||||||||||||||
All fees under the director compensation policy will be paid on a quarterly basis and no per meeting fees will be paid. The Company will also reimburse non-employee directors for reasonable expenses incurred in connection with attending board and committee meetings. |
Warrants
Warrants | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||||||
Warrants | ' | ||||||||||||||||||||||||||||
Note 8. Warrants | |||||||||||||||||||||||||||||
We have issued certain warrants which contain an exercise price adjustment feature in the event we issue additional equity instruments at a price lower than the exercise price of the warrant. The warrants are described herein as derivative warrants. For all derivative warrants, in the event equity instruments are issued at a price lower than the exercise price of the warrant, the exercise price is adjusted to the price of the new equity instruments issued (price adjustment feature). For certain of these warrants, the number of shares underlying the warrant is also adjusted to an amount computed by dividing the proceeds of the warrant under its original terms by the revised exercise price (share adjustment feature). These warrants are initially recorded as a warrant liability at fair value with a corresponding entry to the loan guarantee fee asset, debt discount, additional paid-in capital or expense dependent upon the service provided in exchange for the warrant grant. Subsequently, any change in fair value is recognized in earnings until such time as the warrants are exercised, amended or expire. | |||||||||||||||||||||||||||||
In connection with the 2012 Convertible Debt Financing Transaction, we granted 4,118 warrants to Mr. Pappajohn and 2,941 warrants to Mr. Oman on February 22, 2013. The warrants have a ten-year term and an exercise price equal to the IPO price of $10.00 per share. Pursuant to a subsequent agreement, the warrants held by Mr. Pappajohn have an exercise price of $15.00 per share. These warrants were initially recorded at fair value as a financing fee asset and were amortized over the period of the note to interest expense. The issue date fair value of these warrants was $221,000. | |||||||||||||||||||||||||||||
In connection with the December 2012 Bridge Financing Transaction, we granted 2,353 ten-year warrants with an exercise price equal to the IPO price of $10.00 per share to Mr. Pappajohn on March 7, 2013. Mr. Pappajohn subsequently agreed that if our final IPO price was below $15.00, there would be no further adjustment to the price or number of shares covered by the warrants held by him. These warrants were initially recorded at fair value as a financing fee asset and were amortized over the period of the note to interest expense. The issue date fair value of these warrants was $47,000. | |||||||||||||||||||||||||||||
On February 11, 2013, John Pappajohn agreed to limit certain anti-dilution rights in his warrants to purchase shares of the Company’s common stock. Subject to the consummation of an IPO prior to April 13, 2013, Mr. Pappajohn agreed that if the final IPO price was below $15.00, the exercise price of the warrants held by him would adjust to $15.00 and the number of shares underlying the warrants would be adjusted as if the IPO price were $15.00 and then there would be no further adjustment to the price or number of shares covered by warrants held by him. In February 2013, certain warrant holders agreed to waive the price and share adjustment provisions of their warrants, except for the anti-dilution provisions related to stock splits, subdivisions and combinations, with respect to an aggregate of 114,030 shares of common stock underlying such warrants, effective immediately following the consummation of our IPO on April 10, 2013 at $10.00 per share. | |||||||||||||||||||||||||||||
On April 10, 2013, the Company completed the IPO at $10.00 per share. The shares of common stock issuable upon the exercise of warrants increased by 838,889 shares and the exercise prices of 1,656,860 warrants were adjusted as a result of share and exercise price adjustment features in certain warrants. | |||||||||||||||||||||||||||||
On April 29, 2013, the Company received $96,000 from shareholders who exercised warrants to purchase 24,000 shares of common stock at $4.00 per share. | |||||||||||||||||||||||||||||
On July 6, 2013, a warrant holder exercised a warrant to purchase 6,000 shares of common stock at an exercise price of $4.00 per share using the net issuance exercise method whereby 2,072 shares were surrendered as payment in full of the exercise price resulting in a net issuance of 3,928 shares. | |||||||||||||||||||||||||||||
On July 8, 2013, the Company received $96,000 from shareholders who exercised warrants to purchase 24,000 shares of common stock at $4.00 per share. | |||||||||||||||||||||||||||||
On September 10, 2013 and September 27, 2013, the Company extended the expiration date of 42,468 warrants for 17 days and 11 days respectively. | |||||||||||||||||||||||||||||
On September 30, 2013, warrant holders exercised warrants to purchase 30,034 shares of common stock at an exercise price of $10.00 per share using the net issuance exercise method whereby 14,313 shares were surrendered as payment in full of the exercise price resulting in a net issuance of 15,721 shares. | |||||||||||||||||||||||||||||
The following table summarizes the warrant activity for the nine months ended September 30, 2013: | |||||||||||||||||||||||||||||
Issued With / For | Exercise | Warrants | 2013 | 2013 | 2013 | IPO | Warrants | ||||||||||||||||||||||
Price | Outstanding | Warrants | Warrants | Warrants | Adjustments (E) | Outstanding | |||||||||||||||||||||||
January 1, | Issued | Exercised | Expired | September 30, | |||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||
Non-Derivative Warrants: | |||||||||||||||||||||||||||||
Financing | $ | 10 | — | — | — | — | 243,334 | 243,334 | |||||||||||||||||||||
Financing | 15 | — | — | — | — | 436,079 | 436,079 | ||||||||||||||||||||||
Debt Guarantee | 4 | 228,288 | — | (54,000 | ) | — | — | 174,288 | |||||||||||||||||||||
Debt Guarantee | 10 | — | — | — | — | 237,500 | 237,500 | ||||||||||||||||||||||
Debt Guarantee | 15 | — | — | — | — | 585,645 | 585,645 | ||||||||||||||||||||||
Series A Pref. Stock | 14.1 | 65,329 | — | — | (22,861 | ) | — | 42,468 | |||||||||||||||||||||
Consulting | 10 | — | — | — | — | 29,138 | 29,138 | ||||||||||||||||||||||
12.42 | F | 293,617 | — | (54,000 | ) | (22,861 | ) | 1,531,696 | 1,748,452 | ||||||||||||||||||||
Derivative Warrants: | |||||||||||||||||||||||||||||
Financing | 10.00 | B | — | — | — | — | 60,000 | 60,000 | |||||||||||||||||||||
Financing | 25.00 | B | 60,000 | — | — | — | (60,000 | ) | — | ||||||||||||||||||||
Financing | 42.50 | BCD | 75,294 | — | — | — | (75,294 | ) | — | ||||||||||||||||||||
Financing | 42.50 | AD | 54,314 | 2,941 | — | — | (57,255 | ) | — | ||||||||||||||||||||
Financing | 42.50 | ACD | 120,865 | 6,471 | — | — | (127,336 | ) | — | ||||||||||||||||||||
Debt Guarantee | 10.00 | A | — | — | — | — | 12,500 | 12,500 | |||||||||||||||||||||
Debt Guarantee | 25.00 | ACD | 212,000 | — | — | — | (212,000 | ) | — | ||||||||||||||||||||
Debt Guarantee | 25.00 | AD | 95,000 | — | — | — | (95,000 | ) | — | ||||||||||||||||||||
Debt Guarantee | 25.00 | A | 5,000 | — | — | — | (5,000 | ) | — | ||||||||||||||||||||
Debt Guarantee | 32.45 | ACD | 40,000 | — | — | — | (40,000 | ) | — | ||||||||||||||||||||
Debt Guarantee | 42.50 | ACD | 38,392 | — | — | — | (38,392 | ) | — | ||||||||||||||||||||
Debt Guarantee | 42.50 | BCD | 37,000 | — | — | — | (37,000 | ) | — | ||||||||||||||||||||
Series B Pref. Stock | 10.00 | B | — | — | (30,034 | ) | — | 52,464 | 22,430 | ||||||||||||||||||||
Series B Pref. Stock | 25.00 | B | 52,464 | — | — | — | (52,464 | ) | — | ||||||||||||||||||||
Consulting | 10.00 | B | — | — | — | — | 200 | 200 | |||||||||||||||||||||
Consulting | 12.50 | AD | 4,030 | — | — | — | (4,030 | ) | — | ||||||||||||||||||||
Consulting | 14.10 | AD | 10,000 | — | — | — | (10,000 | ) | — | ||||||||||||||||||||
Consulting | 25.00 | B | 200 | — | — | — | (200 | ) | — | ||||||||||||||||||||
Consulting | 25.00 | AD | 4,000 | — | — | — | (4,000 | ) | — | ||||||||||||||||||||
10.00 | F | 808,559 | 9,412 | (30,034 | ) | — | (692,807 | ) | 95,130 | ||||||||||||||||||||
$ | 12.30 | F | 1,102,176 | 9,412 | (84,034 | ) | (22,861 | ) | 838,889 | 1,843,582 | |||||||||||||||||||
A | These warrants are subject to fair value accounting and contain exercise price and number of share adjustment features. See Note 9. | ||||||||||||||||||||||||||||
B | These warrants are subject to fair value accounting and contain an exercise price adjustment feature. See Note 9. | ||||||||||||||||||||||||||||
C | On February 11, 2013, these warrants held by John Pappajohn were amended to limit the adjustment feature(s) to $15.00 per share in an initial public offering (totaling 530,022 warrants). | ||||||||||||||||||||||||||||
D | The exercise price and/or number of share adjustment features of these warrants expired and are no longer subject to fair value accounting after our initial public offering. | ||||||||||||||||||||||||||||
E | On April 10, 2013 the Company completed the IPO at $10.00 per share. The shares of common stock issuable upon the exercise of warrants outstanding as of April 10, 2013 increased by 838,889 shares and the exercise prices of 1,656,860 warrants were adjusted as a result of the share and exercise price adjustment features described above. | ||||||||||||||||||||||||||||
F | Weighted average exercise prices are as of September 30, 2013. | ||||||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||||||
On October 28, 2013, warrant holders exercised warrants to purchase 33,868 shares of common stock, at exercise prices ranging from $10.00 – $14.10 per share, using the net issuance exercise method whereby 23,188 shares were surrendered as payment in full of the exercise price resulting in a net issuance of 10,680 shares. |
Fair_Value_of_Warrants
Fair Value of Warrants | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value of Warrants | ' | ||||||||||||||||||||||||
Note 9. Fair Value of Warrants | |||||||||||||||||||||||||
The following tables summarize the assumptions used in computing the fair value of derivative warrants subject to fair value accounting at the date of issue during the nine months ended September 30, 2013 and 2012 and at September 30, 2013, April 5, 2013 (IPO valuation date) and December 31, 2012. In computing the fair value of the warrants, if the stated exercise price of the warrants exceeded the assumed value of the Company stock at the date the fair value was being computed, the exercise price and number of shares (if applicable) underlying the warrants were adjusted to reflect an assumed trigger of the price and/or share adjustment features related to the applicable warrants: | |||||||||||||||||||||||||
Debt Guarantee | Issued During | As of | As of | As of | |||||||||||||||||||||
the Nine | September 30, 2013 | April 5, 2013 | December 31, 2012 | ||||||||||||||||||||||
Months Ended | |||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||
Exercise Price | $ | 42.5 | $ | 10 | $ | 13.56 | $ | 9.6 | |||||||||||||||||
Expected life (years) | 4.73 | 1.08 | 2.42 | 2.66 | |||||||||||||||||||||
Expected volatility | 80.47 | % | 57.51 | % | 66.37 | % | 67.71 | % | |||||||||||||||||
Risk-free interest rate | 0.9 | % | 0.1 | % | 0.32 | % | 0.37 | % | |||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||||||
Series B | As of | As of | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Exercise Price | $ | 10 | $ | 9.6 | |||||||||||||||||||||
Expected life (years) | 2.17 | 2.92 | |||||||||||||||||||||||
Expected volatility | 65.18 | % | 61.44 | % | |||||||||||||||||||||
Risk-free interest rate | 0.33 | % | 0.36 | % | |||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | |||||||||||||||||||||
Consulting | As of | As of | As of | ||||||||||||||||||||||
September 30, 2013 | April 5, 2013 | December 31, 2012 | |||||||||||||||||||||||
Exercise Price | $ | 10 | $ | 10 | $ | 9.6 | |||||||||||||||||||
Expected life (years) | 2.39 | 2.33 | 2.48 | ||||||||||||||||||||||
Expected volatility | 63.81 | % | 63.2 | % | 63.29 | % | |||||||||||||||||||
Risk-free interest rate | 0.33 | % | 0.27 | % | 0.28 | % | |||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||||
Issued During the Nine Months Ended | Issued During the | As of September 30, | As of April 5, | As of December 31, | |||||||||||||||||||||
September 30, | Three Months | 2013 | 2013 | 2012 | |||||||||||||||||||||
Ended | |||||||||||||||||||||||||
Financing | 2013 | 2012 | September 30, 2012 | ||||||||||||||||||||||
Exercise Price | $ | 13.34 | $ | 42.5 | $ | 42.5 | $ | 10 | $ | 13.21 | $ | 9.6 | |||||||||||||
Expected life (years) | 9.78 | 4.93 | 5.08 | 2.5 | 8.3 | 6.66 | |||||||||||||||||||
Expected volatility | 74.7 | % | 79.41 | % | 79.36 | % | 63.12 | % | 73.22 | % | 73.38 | % | |||||||||||||
Risk-free interest rate | 1.95 | % | 0.79 | % | 0.71 | % | 0.63 | % | 1.44 | % | 1.06 | % | |||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||
The assumed Company stock price used in computing the warrant fair value for warrants issued during the nine months ended September 30, 2013 was $9.60 – $20.26 and $18.70 – $33.80 for the nine months ended September 30, 2012. In determining the fair value of warrants issued at each reporting date, the assumed Company stock price was $20.26 at September 30, 2013 and $9.60 at December 31, 2012. | |||||||||||||||||||||||||
The following table summarizes the derivative warrant activity subject to fair value accounting for the nine months ended September 30, 2013: | |||||||||||||||||||||||||
Issued with/for | Fair value of | Fair value | Reclassification | Warrants | Change in | Fair value of | |||||||||||||||||||
warrants | of warrants | to equity in | Exercised | fair value | warrants | ||||||||||||||||||||
outstanding as of | issued | IPO | of warrants | outstanding as of | |||||||||||||||||||||
December 31, 2012 | September 30, 2013 | ||||||||||||||||||||||||
Series B Preferred Stock | $ | 230,000 | $ | — | $ | — | $ | (373,000 | ) | $ | 422,000 | $ | 279,000 | ||||||||||||
Debt Guarantee | 5,679,000 | — | (2,514,000 | ) | — | (3,026,000 | ) | 139,000 | |||||||||||||||||
Consulting | 147,000 | — | (108,000 | ) | — | (36,000 | ) | 3,000 | |||||||||||||||||
Financing | 6,493,000 | 268,000 | (4,548,000 | ) | — | (1,456,000 | ) | 757,000 | |||||||||||||||||
$ | 12,549,000 | $ | 268,000 | $ | (7,170,000 | ) | $ | (373,000 | ) | $ | (4,096,000 | ) | $ | 1,178,000 | |||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 10. Fair Value Measurements | |||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Fair Value Measurements and Disclosures Topic of the FASB Accounting Standards Codification requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect our own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the Topic establishes a fair value hierarchy for valuation inputs that give the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | |||||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that we have the ability to access as of the measurement date. | |||||||||||||||||
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||
Level 3: Significant unobservable inputs that reflect our own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||
The following table summarizes the financial liabilities measured at fair value on a recurring basis segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Warrant liability | $ | 1,178,000 | — | — | $ | 1,178,000 | |||||||||||
December 31, 2012 | |||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Warrant liability | $ | 12,549,000 | — | — | $ | 12,549,000 | |||||||||||
The warrant liability consists of stock warrants we issued that contain an exercise price adjustment feature. In accordance with derivative accounting for warrants, we calculated the fair value of warrants and the assumptions used are described in Note 9, “Fair Value of Warrants”. Realized and unrealized gains and losses related to the change in fair value of the warrant liability are included in Other income (expense) on the Statement of Operations. | |||||||||||||||||
The following table reflects the activity for liabilities measured at fair value using Level 3 inputs for the nine months ended September 30: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance as of January 1 | $ | 12,549,000 | $ | 11,113,000 | |||||||||||||
Issuances of derivative financial instruments | 268,000 | 3,678,000 | |||||||||||||||
Derivative financial instruments reclassified to equity in IPO | (7,170,000 | ) | — | ||||||||||||||
Derivative financial instruments reclassified to equity upon exercise | (373,000 | ) | — | ||||||||||||||
Unrealized (gain) loss related to change in fair value | (4,096,000 | ) | (6,370,000 | ) | |||||||||||||
Balance as of September 30 | $ | 1,178,000 | $ | 8,421,000 | |||||||||||||
Joint_Venture_Agreement
Joint Venture Agreement | 9 Months Ended |
Sep. 30, 2013 | |
Equity Method Investments And Joint Ventures [Abstract] | ' |
Joint Venture Agreement | ' |
Note 11. Joint Venture Agreement | |
In November 2011, we entered into an affiliation agreement with the Mayo Foundation for Medical Education and Research (“Mayo”), subsequently amended. Under the agreement, we formed a joint venture with Mayo in May 2013 to focus on developing oncology diagnostic services and tests utilizing next generation sequencing. The joint venture will take the form of a limited liability company, with each party initially holding fifty percent of the issued and outstanding membership interests of the new entity (the “JV”). The agreement also requires aggregate total capital contributions by us of up to $5.0 million over the next two and a half years, with $4.0 million of such amount subject to the joint venture achieving certain operational milestones. In exchange for its membership interests, Mayo’s capital contribution will take the form of cash, staff, services, hardware and software resources, laboratory space and instrumentation, the fair market value of which will be approximately equal to $6 million. Mayo’s continued contribution will also be conditioned upon the JV’s achievement of certain milestones. The operation of the joint venture may also divert management time from operating our business. No assurances can be given that we will be able to fully fund the joint venture agreement, or that, even if funded, the joint venture will ever achieve the research, development and commercial objectives currently contemplated by the parties, such as the discovery and commercialization of new diagnostic tests utilizing next-generation sequencing. If the development efforts of the joint venture do not result in commercially successful tests or services, it will have an adverse effect on our business, financial condition and results of operations. | |
Subsequent Event | |
In exchange for the membership interests in the JV, we made an initial capital contribution of $1.0 million in October 2013. In addition, in October 2013, we issued 10,000 shares of our common stock to Mayo pursuant to our affiliation agreement with Mayo. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 12. Related Party Transactions | |
John Pappajohn, a member of the Board of Directors and stockholder, personally guarantees our revolving line of credit with Wells Fargo Bank. As consideration for his guarantee, as well as each of the eight extensions of this facility through September 30, 2013, Mr. Pappajohn received warrants to purchase an aggregate of 1,051,506 shares of common stock of which Mr. Pappajohn assigned warrants to purchase 284,000 shares of common stock to certain third parties. Warrants to purchase 395,825 shares of common stock have been exercised by Mr. Pappajohn through September 30, 2013. After adjustment pursuant to the terms of the warrants in conjunction with our IPO, the number of these warrants outstanding retained by Mr. Pappajohn was 585,645 at $15.00 per share and 44,288 at $4.00 per share. | |
In addition, John Pappajohn also had loaned us an aggregate of $6,750,000. In connection with these loans, Mr. Pappajohn received warrants to purchase an aggregate of 202,630 shares of common stock. After adjustment pursuant to the terms of the warrants in conjunction with our IPO, the number of warrants outstanding was 436,079 at $15.00 per share at September 30, 2013. | |
Andrew Pecora (indirectly through an investment company), a member of our board of directors, and NNJCA, a limited liability company of which Dr. Pecora is a member originally provided $500,000 and $1.5 million of financing, respectively, under a Credit Agreement dated as of December 21, 2011, as amended and restated as of February 13, 2012. On April 10, 2013, NNJCA converted $500,000 of its outstanding indebtedness into 50,000 shares of our common stock at the IPO price of $10.00 per share concurrent with our IPO. On August 19, 2013, the remaining principal under these notes were repaid to Dr. Pecora and NNJCA using a portion of the proceeds from our Secondary Offering. | |
The loan bore an annual interest rate equal to the prime rate plus 6.25% (9.50% at September 30, 2013). We accrued a fee due to Pecora and NNJCA of $130,000 of which $32,667 was paid upon conversion of the notes and the remaining balance paid on August 19, 2013. | |
On May 19, 2006, we issued a convertible promissory note in favor of our Chairman and founder, Dr. Chaganti, the holder, which obligated us to pay the holder the sum of $100,000, together with interest at the rate of 8.5% per annum, due April 1, 2014. Interest expense for the nine months ended September 30, 2013 and 2012 totaled $2,357 and $6,300, respectively. (see Note 4 for additional information regarding the conversion of the promissory note into common stock concurrent with our IPO on April 10, 2013.). Pursuant to a consulting and advisory agreement, Dr. Chaganti also received options to purchase a total of 36,000 shares of common stock at price of $10.00 per share which vested over a two year period. Total non-cash stock-based compensation recognized under the consulting agreement for the nine months ended September 30, 2013 and 2012 were $76,220 and $367,050, respectively. Additionally, we entered into a three-year consulting agreement with Dr. Chaganti expiring on September 30, 2013 pursuant to which Dr. Chaganti received $5,000 per month for providing consulting and technical support services. Total expenses for each of the nine month periods ended September 30, 2013 and 2012 were $45,000. | |
On August 15, 2010, we entered into a two-year consulting agreement with Dr. Pecora, a member of our board of directors, pursuant to which Dr. Pecora received $5,000 per month for providing consulting and advisory services. Dr. Pecora also received stock options under the consulting and advisory agreement to purchase a total of 12,000 shares of common stock at price of $10.00 per share which vested over a two year period. The cash component of this agreement was terminated by mutual consent in 2011. Total non-cash stock-based compensation recognized under the consulting agreement for the nine months ended September 30, 2013 and 2012 were $0 and $142,740, respectively. | |
In August 2010, we entered into a consulting agreement with Equity Dynamics, Inc., an entity controlled by John Pappajohn, pursuant to which Equity Dynamics, Inc. receives a monthly fee of $10,000 plus reimbursement of expenses. Total consulting fees for each of the nine month periods ended September 30, 2013 and 2012 were $90,000. As of September 30, 2013, we owed Equity Dynamics, Inc. $20,000. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Note 13. Contingencies | |
In the normal course of business, the Company may become involved in various claims and legal proceedings. In the opinion of management, the ultimate liability or disposition thereof is not expected to have a material adverse effect on our financial condition, results of operations, or liquidity. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of presentation | ' | ||||||||||||||||
Basis of presentation: The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for interim reporting as they are prescribed by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2012 that are included in our prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, on October 23, 2013 (Prospectus). The consolidated balance sheet as of December 31, 2012, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. Interim financial results are not necessarily indicative of the results that may be expected for future interim periods or for the year ending December 31, 2013. | |||||||||||||||||
Liquidity/Going Concern | ' | ||||||||||||||||
Liquidity/Going Concern: Our primary sources of liquidity have been funds generated from debt financing, the sale of shares of common and preferred stock, grants in lieu of federal income tax credits, National Institute of Health grants and sales of state NOL carryforwards. | |||||||||||||||||
We believe our cash resources, prior to our latest offering of common stock, which was consummated on October 28, 2013, were sufficient to satisfy our liquidity requirements at our current level of operations through September 2014 and assuming we are able to secure an extension of the $6.0 million of indebtedness due April 1, 2014 through March 2015. We have commenced negotiations with Wells Fargo and with Mr. Pappajohn, who serves as a guarantor for such outstanding indebtedness, to further extend the maturity date. However, there can be no assurances that we will be successful. If we are not successful in obtaining an extension, we expect that we would use a portion of the net proceeds received from our latest offering of common stock, which was consummated on October 28, 2013, to repay that debt. Including the funds raised through the offering of common stock which was consummated on October 28, 2013, we believe that our current cash resources are sufficient to satisfy our liquidity requirements for at least two years even if we are unable to secure an extension of the Wells Fargo debt. Our forecast of the period of time through which our financial resources will be adequate to support our operations and the costs to support our general and administrative, sales and marketing and research and development activities are forward-looking statements and involve risks and uncertainties. | |||||||||||||||||
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has suffered recurring losses from operations and had negative working capital at September 30, 2013. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Refer to the section entitled “Capital Resources and Expenditure Requirements” in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Form 10-Q of which these financial statements are a part. | |||||||||||||||||
Principles of consolidation | ' | ||||||||||||||||
Principles of consolidation: The accompanying consolidated financial statements include the accounts of Cancer Genetics, Inc. and our wholly owned subsidiary, Cancer Genetics Italia S.r.L. All significant intercompany account balances and transactions have been eliminated in consolidation. | |||||||||||||||||
Use of estimates and assumptions | ' | ||||||||||||||||
Use of estimates and assumptions: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, among others, realization of amounts billed, realization of long-lived assets, realization of intangible assets, accruals for registration payments and assumptions used to value stock options and warrants. Actual results could differ from those estimates. | |||||||||||||||||
Risks and uncertainties | ' | ||||||||||||||||
Risks and uncertainties: We operate in an industry that is subject to intense competition, government regulation and rapid technological change. Our operations are subject to significant risk and uncertainties including financial, operational, technological, regulatory and other risks, including the potential risk of business failure. | |||||||||||||||||
Cash and cash equivalents | ' | ||||||||||||||||
Cash and cash equivalents: Highly liquid investments with original maturities of three months or less when purchased are considered to be cash equivalents. Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents. We maintain cash and cash equivalents with high-credit quality financial institutions. At times, such amounts may exceed insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on our cash and cash equivalents. | |||||||||||||||||
Revenue recognition | ' | ||||||||||||||||
Revenue recognition: Revenue is recognized in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, Revenue Recognition, and ASC 954-605 Health Care Entities, Revenue Recognition which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred and title and the risks and rewards of ownership have been transferred to the customer or services have been rendered; (3) the price is fixed or determinable; and (4) collectability is reasonably assured. In determining whether the price is fixed or determinable, we consider payment limits imposed by insurance carriers and Medicare and the amount of revenue recorded takes into account the historical percentage of revenue we have collected for each type of test for each payor category. Periodically, an adjustment is made to revenue to record differences between our anticipated cash receipts from insurance carriers and Medicare and actual receipts from such payors. For the periods presented, such adjustments were not significant. For direct bill customers (including clinical trials customers), revenue is recorded based upon the contractually agreed upon fee schedule. When assessing collectability, we consider whether we have sufficient payment history to reliably estimate a payor’s individual payment patterns. For new tests where there is no evidence of payment history at the time the tests are completed, we only recognize revenues once reimbursement experience can be established. We then recognize revenue equal to the amount of cash received. Sales of probes are recorded on the shipping date. We do not bill customers for shipping and handling fees and do not collect any sales or other taxes. | |||||||||||||||||
Revenues from grants to support product development are recognized when costs and expenses under the terms of the grant have been incurred and payments under the grants become contractually due. | |||||||||||||||||
Accounts receivable | ' | ||||||||||||||||
Accounts receivable: Accounts receivable are carried at original invoice amount less an estimate for contractual adjustments and doubtful receivables, the amounts of which are determined by an analysis of individual accounts. Our policy for assessing the collectability of receivables is dependent upon the major payor source of the underlying revenue. For direct bill clients, an assessment of credit worthiness is performed prior to initial engagement and is reassessed periodically. If deemed necessary, an allowance is established on receivables from direct bill clients. For insurance carriers where there is not an established pattern of collection, revenue is not recorded until cash is received. For receivables where insurance carriers have made payments to patients instead of directing payments to the Company, an allowance is established for a portion of such receivables. After reasonable collection efforts are exhausted, amounts deemed to be uncollectible are written off against the allowance for doubtful accounts. Since the Company only recognizes revenue to the extent it expects to collect such amounts, bad debt expense related to receivables from patient service revenue is recorded in general and administrative expense in the consolidated statement of operations. Recoveries of accounts receivable previously written off are recorded when received. | |||||||||||||||||
Deferred Offering costs | ' | ||||||||||||||||
Deferred Offering costs: Deferred offering costs represent legal, accounting and other direct costs related to our effort to raise capital through a stock offering. Future costs related to our offering activities will be deferred until the completion of the offering, at which time they will be reclassified to additional paid-in capital as a reduction of the offering proceeds. In connection with our IPO, $617,706 in deferred offering costs were expensed and approximately $2.5 million in deferred offering costs were reclassified to additional paid-in capital. Additionally, $733,250 in deferred offering costs were reduced due to discounts given by vendors associated with that offering and $120,000 was refunded. In connection with our Secondary Offering, we incurred $1.8 million in offering costs, all of which were reclassified to additional paid-in-capital. | |||||||||||||||||
Warrant liability | ' | ||||||||||||||||
Warrant liability: We have issued certain warrants which contain an exercise price adjustment feature in the event we issue additional equity instruments at a price lower than the exercise price of the warrant. The warrants are described herein as derivative warrants. We account for these derivative warrants as liabilities. These common stock purchase warrants do not trade in an active securities market, and as such, we estimate the fair value of these warrants using the binomial lattice valuation pricing model with the assumptions as follows: The risk-free interest rate for periods within the contractual life of the warrant is based on the U.S. Treasury yield curve. The expected life of the warrants is based upon the contractual life of the warrants. Volatility is estimated based on an average of the historical volatilities of the common stock of four entities with characteristics similar to those of the Company. Prior to our IPO, the measurement date fair value of the underlying common shares was based upon an external valuation of our shares. (See Notes 8 and 9). Subsequent to the IPO and Secondary Offering, we use the closing price of our shares on the OTC Bulletin Board and the NASDAQ Capital Market, respectively. | |||||||||||||||||
We compute the fair value of the warrant liability at each reporting period and the change in the fair value is recorded as non-cash expense or non-cash income. The key component in the value of the warrant liability is our stock price, which is subject to significant fluctuation and is not under our control. The resulting effect on our net income (loss) is therefore subject to significant fluctuation and will continue to be so until the warrants are exercised, amended or expire. Assuming all other fair value inputs remain constant, we will record non-cash expense when the stock price increases and non-cash income when the stock price decreases. | |||||||||||||||||
Income taxes | ' | ||||||||||||||||
Income taxes: Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist of taxes currently due plus deferred income taxes. Deferred income taxes are recognized for temporary differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Deferred income taxes are also recognized for net operating loss carryforwards that are available to offset future taxable income and research and development credits. On January 22, 2013, we sold certain state net operating loss carryforwards. The proceeds of $663,900 are included in our income tax benefit for the nine months ended September 30, 2013. | |||||||||||||||||
Registration payment arrangements | ' | ||||||||||||||||
Registration payment arrangements: We account for our obligations under registration payment arrangements in accordance with ASC 825-20, Registration Payment Arrangements. ASC 825-20 requires us to record a liability if we determine a registration payment is probable and if it can reasonably be estimated. As of September 30, 2013 and December 31, 2012, we have an accrued liability of $300,000 and $541,000, respectively, related to registration rights obligations associated with the issuance of Series B preferred stock and certain notes payable. | |||||||||||||||||
Stock-based compensation | ' | ||||||||||||||||
Stock-based compensation: Stock-based compensation is accounted for in accordance with the provisions of ASC 718, Compensation-Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. We estimate the fair value of stock-based awards on the date of grant using the Black-Scholes option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. See additional information in Note 7. | |||||||||||||||||
All issuances of stock options or other issuances of equity instruments to employees as the consideration for services received by us are accounted for based on the fair value of the equity instrument issued. | |||||||||||||||||
We account for stock-based compensation awards to non-employees in accordance with ASC 505-50, Equity Based Payments to Non-Employees. Under ASC 505-50, we determine the fair value of the warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. Stock-based compensation awards issued to non-employees are recorded in expense and additional paid-in capital in stockholders’ deficit over the applicable service periods based on the fair value of the awards or consideration received at the vesting date. | |||||||||||||||||
Subsequent events | ' | ||||||||||||||||
Subsequent events: We have evaluated potential subsequent events through November 13, 2013, which is the date the financial statements were issued. | |||||||||||||||||
Earnings (loss) per share | ' | ||||||||||||||||
Earnings (loss) per share: Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares assumed to be outstanding during the period of computation. Diluted earnings per share is computed similar to basic earnings per share except that the numerator is adjusted for the change in fair value of the warrant liability (only if dilutive) and the denominator is increased to include the number of dilutive potential common shares outstanding during the period using the treasury stock method. | |||||||||||||||||
Basic net income (loss) and diluted net loss per share data were computed as follows: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) for basic earnings per share | $ | (3,066,376 | ) | $ | 311,588 | $ | (9,848,164 | ) | $ | (2,621,390 | ) | ||||||
Less gain in fair value of warrant liability | — | 3,334,000 | 4,096,000 | 6,370,000 | |||||||||||||
Net (loss) for diluted earnings per share | $ | (3,066,376 | ) | $ | (3,022,412 | ) | $ | (13,944,164 | ) | $ | (8,991,390 | ) | |||||
Denominator: | |||||||||||||||||
Weighted-average basic common shares outstanding | 5,055,591 | 1,346,124 | 3,463,730 | 1,340,530 | |||||||||||||
Assumed conversion of dilutive securities: | |||||||||||||||||
Common stock purchase warrants | — | 9,554 | 4,897 | 9,554 | |||||||||||||
Potentially dilutive common shares | — | 9,554 | 4,897 | 9,554 | |||||||||||||
Denominator for diluted earnings per share—adjusted weighted-average shares | 5,055,591 | 1,355,678 | 3,468,627 | 1,350,084 | |||||||||||||
Basic net income (loss) per share | $ | (0.61 | ) | $ | 0.23 | $ | (2.84 | ) | $ | (1.96 | ) | ||||||
Diluted net loss per share | $ | (0.61 | ) | $ | (2.23 | ) | $ | (4.02 | ) | $ | (6.66 | ) | |||||
The following table summarizes potentially dilutive adjustments to the weighted average number of common shares which were excluded from the calculation: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Common stock purchase warrants | 1,843,582 | 955,458 | 1,843,582 | 955,458 | |||||||||||||
Stock options | 506,294 | 553,580 | 506,294 | 553,580 | |||||||||||||
Common shares issuable upon conversion of Series A Preferred Stock | — | 352,614 | — | 352,614 | |||||||||||||
Common shares issuable upon conversion of Series B Preferred Stock | — | 364,320 | — | 364,320 | |||||||||||||
2,349,876 | 2,225,972 | 2,349,876 | 2,225,972 | ||||||||||||||
Organization_Description_of_Bu1
Organization, Description of Business, Reverse Stock Splits and Initial Public Offering (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Net Proceeds from Public Offering | ' | ||||||||
Net proceeds of $42.2 million were available to us from the public offering and were determined as follows: | |||||||||
Gross proceeds (including over-allotment) | $ | 46,013,800 | |||||||
Underwriting discounts, expenses and commissions | (3,446,792 | ) | |||||||
Estimated other offering costs | (315,850 | ) | |||||||
Pro forma net proceeds | $ | 42,251,158 | |||||||
Schedule of Balance Sheet Data and Pro Forma Balance Sheet Data | ' | ||||||||
The following table summarizes certain actual balance sheet data and pro forma balance sheet data to reflect the activities related to our recent public offering noted above, as of September 30, 2013: | |||||||||
September 30, | Pro forma | ||||||||
2013 | September 30, | ||||||||
2013 | |||||||||
Cash and cash equivalents | $ | 9,878,176 | $ | 52,129,334 | |||||
Loan guarantee and financing fees | 621,000 | 621,000 | |||||||
Accounts payable and accrued expenses | 1,807,081 | 1,807,081 | |||||||
Notes payable, current portion | 43,622 | 43,622 | |||||||
Line of credit | 6,000,000 | 6,000,000 | |||||||
Warrant liability | 1,178,000 | 1,178,000 | |||||||
Common stock | 597 | 925 | |||||||
Additional paid-in capital | 63,681,317 | 105,932,147 | |||||||
Accumulated deficit | $ | (58,800,191 | ) | $ | (58,800,191 | ) |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Computation of Basic Net Income (Loss) and Diluted Net Loss Per Share Data | ' | ||||||||||||||||
Basic net income (loss) and diluted net loss per share data were computed as follows: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) for basic earnings per share | $ | (3,066,376 | ) | $ | 311,588 | $ | (9,848,164 | ) | $ | (2,621,390 | ) | ||||||
Less gain in fair value of warrant liability | — | 3,334,000 | 4,096,000 | 6,370,000 | |||||||||||||
Net (loss) for diluted earnings per share | $ | (3,066,376 | ) | $ | (3,022,412 | ) | $ | (13,944,164 | ) | $ | (8,991,390 | ) | |||||
Denominator: | |||||||||||||||||
Weighted-average basic common shares outstanding | 5,055,591 | 1,346,124 | 3,463,730 | 1,340,530 | |||||||||||||
Assumed conversion of dilutive securities: | |||||||||||||||||
Common stock purchase warrants | — | 9,554 | 4,897 | 9,554 | |||||||||||||
Potentially dilutive common shares | — | 9,554 | 4,897 | 9,554 | |||||||||||||
Denominator for diluted earnings per share—adjusted weighted-average shares | 5,055,591 | 1,355,678 | 3,468,627 | 1,350,084 | |||||||||||||
Basic net income (loss) per share | $ | (0.61 | ) | $ | 0.23 | $ | (2.84 | ) | $ | (1.96 | ) | ||||||
Diluted net loss per share | $ | (0.61 | ) | $ | (2.23 | ) | $ | (4.02 | ) | $ | (6.66 | ) | |||||
Summary of Potentially Dilutive Adjustments to Weighted Average Number of Common Shares Excluded from Calculation | ' | ||||||||||||||||
The following table summarizes potentially dilutive adjustments to the weighted average number of common shares which were excluded from the calculation: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Common stock purchase warrants | 1,843,582 | 955,458 | 1,843,582 | 955,458 | |||||||||||||
Stock options | 506,294 | 553,580 | 506,294 | 553,580 | |||||||||||||
Common shares issuable upon conversion of Series A Preferred Stock | — | 352,614 | — | 352,614 | |||||||||||||
Common shares issuable upon conversion of Series B Preferred Stock | — | 364,320 | — | 364,320 | |||||||||||||
2,349,876 | 2,225,972 | 2,349,876 | 2,225,972 | ||||||||||||||
Revenue_and_Accounts_Receivabl1
Revenue and Accounts Receivable (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Schedule of Revenue by Payor Type | ' | ||||||||||||||||
Revenue by payor type for the three and nine months ended September 30, 2013 and 2012 is comprised of the following: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Medicare | $ | 229,723 | $ | 178,291 | $ | 637,838 | $ | 586,896 | |||||||||
Direct bill (including clinical trials clients) | 1,060,684 | 473,965 | 2,798,883 | 1,158,212 | |||||||||||||
Grants and royalty | 100,000 | 279,973 | 100,000 | 474,973 | |||||||||||||
Insurance carrier and all others | 314,739 | 310,375 | 1,218,741 | 1,005,750 | |||||||||||||
$ | 1,705,146 | $ | 1,242,604 | $ | 4,755,462 | $ | 3,225,831 | ||||||||||
Schedule of Accounts Receivable by Payor Type | ' | ||||||||||||||||
Accounts receivable by payor type at September 30, 2013 and December 31, 2012 consists of the following: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Medicare | $ | 520,153 | $ | 193,024 | |||||||||||||
Direct bill (including clinical trials clients) | 585,034 | 339,763 | |||||||||||||||
Insurance carrier and all others | 546,947 | 353,758 | |||||||||||||||
Allowance for doubtful accounts | (36,000 | ) | (36,000 | ) | |||||||||||||
$ | 1,616,134 | $ | 850,545 | ||||||||||||||
Notes_Payable_and_Lines_of_Cre1
Notes Payable and Lines of Credit (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Summary of Short-Term and Long-Term Debt Obligations | ' | ||||||||
Below is a summary of our short-term and long-term debt obligations as of September 30, 2013 and December 31, 2012: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
December 2011 Financing Transaction | $ | — | $ | 4,000,000 | |||||
Secured Note Payable, short-term | 43,622 | 79,867 | |||||||
Unamortized debt discount | — | (243,300 | ) | ||||||
Notes Payable, Current Portion | $ | 43,622 | $ | 3,836,567 | |||||
Lines of Credit, Current Portion | $ | 6,000,000 | $ | 3,000,000 | |||||
Unamortized Debt Discount | — | (128,800 | ) | ||||||
Lines of Credit, Current Portion | $ | 6,000,000 | $ | 2,871,200 | |||||
December 2011 Financing Transaction | $ | — | $ | 2,000,000 | |||||
2012 Convertible Debt Financing Transaction | — | 3,000,000 | |||||||
December 2012 Bridge Financing Transaction | — | 1,000,000 | |||||||
Other Note Payable | — | 100,000 | |||||||
Secured Note Payable | — | 22,298 | |||||||
Unamortized debt discount | — | (3,681,615 | ) | ||||||
Notes Payable, Long-Term | $ | — | $ | 2,440,683 | |||||
Lines of Credit, Long-Term | $ | — | $ | 6,000,000 | |||||
Conversion of Indebtedness into Shares of Common Stock | ' | ||||||||
On April 10, 2013, we completed our IPO and converted the following indebtedness into shares of common stock at the IPO price of $10.00 per share: | |||||||||
Converted Amount | Common Shares | ||||||||
December 2011 Financing Transaction | $ | 4,500,000 | 450,000 | ||||||
2012 Convertible Debt Financing Transaction | 3,000,000 | 300,000 | |||||||
December 2012 Bridge Financing Transaction | 1,000,000 | 100,000 | |||||||
Business Lines of Credit (DAM) | 1,000,000 | 100,000 | |||||||
Other Note Payable and accrued interest | 134,300 | 13,430 | |||||||
$ | 9,634,300 | 963,430 | |||||||
Stock_Option_Plans_Tables
Stock Option Plans (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Summary of Employee and Nonemployee Stock Option Activity | ' | ||||||||||||||||||||
A summary of employee and nonemployee stock option activity for year ended December 31, 2012 and the nine months ended September 30, 2013 is as follows: | |||||||||||||||||||||
Options Outstanding | Weighted- | Aggregate | |||||||||||||||||||
Average | Intrinsic | ||||||||||||||||||||
Remaining | Value | ||||||||||||||||||||
Contractual | |||||||||||||||||||||
Number of | Weighted- | Term (in years) | |||||||||||||||||||
Shares | Average | ||||||||||||||||||||
Exercise | |||||||||||||||||||||
Price | |||||||||||||||||||||
Outstanding January 1, 2012 | 559,990 | $ | 12.85 | 8.1 | $ | 11,737,710 | |||||||||||||||
Granted | 2,400 | 33.8 | |||||||||||||||||||
Cancelled or expired | (9,050 | ) | 23.43 | ||||||||||||||||||
Outstanding December 31, 2012 | 553,340 | $ | 12.76 | 7.13 | $ | 1,142,432 | |||||||||||||||
Granted | 59,350 | 10.17 | |||||||||||||||||||
Cancelled or expired | (106,396 | ) | 20.46 | ||||||||||||||||||
Outstanding September 30, 2013 | 506,294 | $ | 7.6 | 6.53 | $ | 6,407,644 | |||||||||||||||
Exercisable, September 30, 2013 | 393,580 | $ | 7 | 6.24 | $ | 5,220,243 | |||||||||||||||
Summary of Outstanding and Vested Stock Options Granted | ' | ||||||||||||||||||||
The following table summarizes information about outstanding and vested stock options granted to employees and non-employees as of September 30, 2013 as follows: | |||||||||||||||||||||
Options Outstanding | Options Vested | ||||||||||||||||||||
and Exercisable | |||||||||||||||||||||
Exercise Price | Number of | Weighted- | Weighted- | Number of | Weighted- | ||||||||||||||||
Shares | Average | Average | Shares | Average | |||||||||||||||||
Outstanding | Remaining | Exercise | Exercise | ||||||||||||||||||
Contractual | Price | Price | |||||||||||||||||||
Life (in years) | |||||||||||||||||||||
4 | 175,000 | 5.58 | $ | 4 | 175,000 | $ | 4 | ||||||||||||||
4.8 | 33,340 | 6.3 | 4.8 | 25,459 | 4.8 | ||||||||||||||||
10 | 292,154 | 7.06 | 10 | 193,011 | 10 | ||||||||||||||||
11.75 | 5,600 | 9.54 | 11.75 | — | 11.75 | ||||||||||||||||
12.5 | 200 | 7.19 | 12.5 | 110 | 12.5 | ||||||||||||||||
Total | 506,294 | 6.53 | $ | 7.6 | 393,580 | $ | 7 | ||||||||||||||
Effects of Stock-Based Compensation Related to Stock Option Awards | ' | ||||||||||||||||||||
The following table presents the effects of stock-based compensation related to stock option awards to employees and nonemployees on our Statement of Operations during the periods presented: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Cost of revenues | $ | 8,442 | $ | 1,126 | $ | 22,621 | $ | 9,557 | |||||||||||||
Research and development | 28,516 | 120,183 | 119,314 | 389,295 | |||||||||||||||||
General and administrative | 71,268 | 62,426 | 223,535 | 223,150 | |||||||||||||||||
Sales and marketing | 9,107 | 17,748 | 41,731 | 144,165 | |||||||||||||||||
Total stock-based compensation | $ | 117,333 | $ | 201,483 | $ | 407,202 | $ | 766,167 | |||||||||||||
Non-Employees [Member] | ' | ||||||||||||||||||||
Weighted-Average Assumptions Used to Estimate the Fair Value of Options Granted | ' | ||||||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair value of options reaching their measurement date for non-employees during the periods presented: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Volatility | 75.32 | % | 75.23 | % | 75.87 | % | 75.01 | % | |||||||||||||
Risk free interest rate | 1.93 | % | 1.04 | % | 1.4 | % | 1.31 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||
Term (years) | 7.21 | 8.1 | 7.5 | 8.35 | |||||||||||||||||
Employees [Member] | ' | ||||||||||||||||||||
Weighted-Average Assumptions Used to Estimate the Fair Value of Options Granted | ' | ||||||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair value of options granted to employees during the periods presented: | |||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Volatility | 77.11 | % | 77.39 | % | |||||||||||||||||
Risk free interest rate | 0.76 | % | 1.43 | % | |||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||||||
Term (years) | 5.95 | 6.5 | |||||||||||||||||||
Weighted-average fair value of options granted during the period | $ | 6.72 | $ | 9.34 |
Warrants_Tables
Warrants (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||||||
Summary of Warrant Activity | ' | ||||||||||||||||||||||||||||
The following table summarizes the warrant activity for the nine months ended September 30, 2013: | |||||||||||||||||||||||||||||
Issued With / For | Exercise | Warrants | 2013 | 2013 | 2013 | IPO | Warrants | ||||||||||||||||||||||
Price | Outstanding | Warrants | Warrants | Warrants | Adjustments (E) | Outstanding | |||||||||||||||||||||||
January 1, | Issued | Exercised | Expired | September 30, | |||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||
Non-Derivative Warrants: | |||||||||||||||||||||||||||||
Financing | $ | 10 | — | — | — | — | 243,334 | 243,334 | |||||||||||||||||||||
Financing | 15 | — | — | — | — | 436,079 | 436,079 | ||||||||||||||||||||||
Debt Guarantee | 4 | 228,288 | — | (54,000 | ) | — | — | 174,288 | |||||||||||||||||||||
Debt Guarantee | 10 | — | — | — | — | 237,500 | 237,500 | ||||||||||||||||||||||
Debt Guarantee | 15 | — | — | — | — | 585,645 | 585,645 | ||||||||||||||||||||||
Series A Pref. Stock | 14.1 | 65,329 | — | — | (22,861 | ) | — | 42,468 | |||||||||||||||||||||
Consulting | 10 | — | — | — | — | 29,138 | 29,138 | ||||||||||||||||||||||
12.42 | F | 293,617 | — | (54,000 | ) | (22,861 | ) | 1,531,696 | 1,748,452 | ||||||||||||||||||||
Derivative Warrants: | |||||||||||||||||||||||||||||
Financing | 10.00 | B | — | — | — | — | 60,000 | 60,000 | |||||||||||||||||||||
Financing | 25.00 | B | 60,000 | — | — | — | (60,000 | ) | — | ||||||||||||||||||||
Financing | 42.50 | BCD | 75,294 | — | — | — | (75,294 | ) | — | ||||||||||||||||||||
Financing | 42.50 | AD | 54,314 | 2,941 | — | — | (57,255 | ) | — | ||||||||||||||||||||
Financing | 42.50 | ACD | 120,865 | 6,471 | — | — | (127,336 | ) | — | ||||||||||||||||||||
Debt Guarantee | 10.00 | A | — | — | — | — | 12,500 | 12,500 | |||||||||||||||||||||
Debt Guarantee | 25.00 | ACD | 212,000 | — | — | — | (212,000 | ) | — | ||||||||||||||||||||
Debt Guarantee | 25.00 | AD | 95,000 | — | — | — | (95,000 | ) | — | ||||||||||||||||||||
Debt Guarantee | 25.00 | A | 5,000 | — | — | — | (5,000 | ) | — | ||||||||||||||||||||
Debt Guarantee | 32.45 | ACD | 40,000 | — | — | — | (40,000 | ) | — | ||||||||||||||||||||
Debt Guarantee | 42.50 | ACD | 38,392 | — | — | — | (38,392 | ) | — | ||||||||||||||||||||
Debt Guarantee | 42.50 | BCD | 37,000 | — | — | — | (37,000 | ) | — | ||||||||||||||||||||
Series B Pref. Stock | 10.00 | B | — | — | (30,034 | ) | — | 52,464 | 22,430 | ||||||||||||||||||||
Series B Pref. Stock | 25.00 | B | 52,464 | — | — | — | (52,464 | ) | — | ||||||||||||||||||||
Consulting | 10.00 | B | — | — | — | — | 200 | 200 | |||||||||||||||||||||
Consulting | 12.50 | AD | 4,030 | — | — | — | (4,030 | ) | — | ||||||||||||||||||||
Consulting | 14.10 | AD | 10,000 | — | — | — | (10,000 | ) | — | ||||||||||||||||||||
Consulting | 25.00 | B | 200 | — | — | — | (200 | ) | — | ||||||||||||||||||||
Consulting | 25.00 | AD | 4,000 | — | — | — | (4,000 | ) | — | ||||||||||||||||||||
10.00 | F | 808,559 | 9,412 | (30,034 | ) | — | (692,807 | ) | 95,130 | ||||||||||||||||||||
$ | 12.30 | F | 1,102,176 | 9,412 | (84,034 | ) | (22,861 | ) | 838,889 | 1,843,582 | |||||||||||||||||||
A | These warrants are subject to fair value accounting and contain exercise price and number of share adjustment features. See Note 9. | ||||||||||||||||||||||||||||
B | These warrants are subject to fair value accounting and contain an exercise price adjustment feature. See Note 9. | ||||||||||||||||||||||||||||
C | On February 11, 2013, these warrants held by John Pappajohn were amended to limit the adjustment feature(s) to $15.00 per share in an initial public offering (totaling 530,022 warrants). | ||||||||||||||||||||||||||||
D | The exercise price and/or number of share adjustment features of these warrants expired and are no longer subject to fair value accounting after our initial public offering. | ||||||||||||||||||||||||||||
E | On April 10, 2013 the Company completed the IPO at $10.00 per share. The shares of common stock issuable upon the exercise of warrants outstanding as of April 10, 2013 increased by 838,889 shares and the exercise prices of 1,656,860 warrants were adjusted as a result of the share and exercise price adjustment features described above. | ||||||||||||||||||||||||||||
F | Weighted average exercise prices are as of September 30, 2013. |
Fair_Value_of_Warrants_Tables
Fair Value of Warrants (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Assumptions Used in Computing Fair Value of Derivative Warrants | ' | ||||||||||||||||||||||||
The following tables summarize the assumptions used in computing the fair value of derivative warrants subject to fair value accounting at the date of issue during the nine months ended September 30, 2013 and 2012 and at September 30, 2013, April 5, 2013 (IPO valuation date) and December 31, 2012. In computing the fair value of the warrants, if the stated exercise price of the warrants exceeded the assumed value of the Company stock at the date the fair value was being computed, the exercise price and number of shares (if applicable) underlying the warrants were adjusted to reflect an assumed trigger of the price and/or share adjustment features related to the applicable warrants: | |||||||||||||||||||||||||
Debt Guarantee | Issued During | As of | As of | As of | |||||||||||||||||||||
the Nine | September 30, 2013 | April 5, 2013 | December 31, 2012 | ||||||||||||||||||||||
Months Ended | |||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||
Exercise Price | $ | 42.5 | $ | 10 | $ | 13.56 | $ | 9.6 | |||||||||||||||||
Expected life (years) | 4.73 | 1.08 | 2.42 | 2.66 | |||||||||||||||||||||
Expected volatility | 80.47 | % | 57.51 | % | 66.37 | % | 67.71 | % | |||||||||||||||||
Risk-free interest rate | 0.9 | % | 0.1 | % | 0.32 | % | 0.37 | % | |||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||||||
Series B | As of | As of | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Exercise Price | $ | 10 | $ | 9.6 | |||||||||||||||||||||
Expected life (years) | 2.17 | 2.92 | |||||||||||||||||||||||
Expected volatility | 65.18 | % | 61.44 | % | |||||||||||||||||||||
Risk-free interest rate | 0.33 | % | 0.36 | % | |||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | |||||||||||||||||||||
Consulting | As of | As of | As of | ||||||||||||||||||||||
September 30, 2013 | April 5, 2013 | December 31, 2012 | |||||||||||||||||||||||
Exercise Price | $ | 10 | $ | 10 | $ | 9.6 | |||||||||||||||||||
Expected life (years) | 2.39 | 2.33 | 2.48 | ||||||||||||||||||||||
Expected volatility | 63.81 | % | 63.2 | % | 63.29 | % | |||||||||||||||||||
Risk-free interest rate | 0.33 | % | 0.27 | % | 0.28 | % | |||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||||||
Issued During the Nine Months Ended | Issued During the | As of September 30, | As of April 5, | As of December 31, | |||||||||||||||||||||
September 30, | Three Months | 2013 | 2013 | 2012 | |||||||||||||||||||||
Ended | |||||||||||||||||||||||||
Financing | 2013 | 2012 | September 30, 2012 | ||||||||||||||||||||||
Exercise Price | $ | 13.34 | $ | 42.5 | $ | 42.5 | $ | 10 | $ | 13.21 | $ | 9.6 | |||||||||||||
Expected life (years) | 9.78 | 4.93 | 5.08 | 2.5 | 8.3 | 6.66 | |||||||||||||||||||
Expected volatility | 74.7 | % | 79.41 | % | 79.36 | % | 63.12 | % | 73.22 | % | 73.38 | % | |||||||||||||
Risk-free interest rate | 1.95 | % | 0.79 | % | 0.71 | % | 0.63 | % | 1.44 | % | 1.06 | % | |||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||
Summary of Derivative Warrant Activity | ' | ||||||||||||||||||||||||
The following table summarizes the derivative warrant activity subject to fair value accounting for the nine months ended September 30, 2013: | |||||||||||||||||||||||||
Issued with/for | Fair value of | Fair value | Reclassification | Warrants | Change in | Fair value of | |||||||||||||||||||
warrants | of warrants | to equity in | Exercised | fair value | warrants | ||||||||||||||||||||
outstanding as of | issued | IPO | of warrants | outstanding as of | |||||||||||||||||||||
December 31, 2012 | September 30, 2013 | ||||||||||||||||||||||||
Series B Preferred Stock | $ | 230,000 | $ | — | $ | — | $ | (373,000 | ) | $ | 422,000 | $ | 279,000 | ||||||||||||
Debt Guarantee | 5,679,000 | — | (2,514,000 | ) | — | (3,026,000 | ) | 139,000 | |||||||||||||||||
Consulting | 147,000 | — | (108,000 | ) | — | (36,000 | ) | 3,000 | |||||||||||||||||
Financing | 6,493,000 | 268,000 | (4,548,000 | ) | — | (1,456,000 | ) | 757,000 | |||||||||||||||||
$ | 12,549,000 | $ | 268,000 | $ | (7,170,000 | ) | $ | (373,000 | ) | $ | (4,096,000 | ) | $ | 1,178,000 | |||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Summary of Financial Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table summarizes the financial liabilities measured at fair value on a recurring basis segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Warrant liability | $ | 1,178,000 | — | — | $ | 1,178,000 | |||||||||||
December 31, 2012 | |||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Warrant liability | $ | 12,549,000 | — | — | $ | 12,549,000 | |||||||||||
Summary of Activity for Liabilities Measured at Fair Value Using Level 3 Inputs | ' | ||||||||||||||||
The following table reflects the activity for liabilities measured at fair value using Level 3 inputs for the nine months ended September 30: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance as of January 1 | $ | 12,549,000 | $ | 11,113,000 | |||||||||||||
Issuances of derivative financial instruments | 268,000 | 3,678,000 | |||||||||||||||
Derivative financial instruments reclassified to equity in IPO | (7,170,000 | ) | — | ||||||||||||||
Derivative financial instruments reclassified to equity upon exercise | (373,000 | ) | — | ||||||||||||||
Unrealized (gain) loss related to change in fair value | (4,096,000 | ) | (6,370,000 | ) | |||||||||||||
Balance as of September 30 | $ | 1,178,000 | $ | 8,421,000 | |||||||||||||
Organization_Description_of_Bu2
Organization, Description of Business, Reverse Stock Splits and Initial Public Offering - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||
Apr. 10, 2013 | Mar. 01, 2013 | Feb. 08, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 05, 2013 | Dec. 31, 2012 | Oct. 28, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Apr. 10, 2013 | Aug. 19, 2013 | Sep. 30, 2013 | |
Subsequent Event | Subsequent Event | Cancer Genetics Italia SRL [Member] | Cancer Genetics Italia SRL [Member] | Cancer Genetics Italia SRL [Member] | Cancer Genetics Italia SRL [Member] | Cancer Genetics Italia SRL [Member] | IPO [Member] | Secondary Offering [Member] | Secondary Offering [Member] | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | ' | ' | ' | $14,306,501 | ' | $14,306,501 | ' | ' | $8,951,771 | ' | ' | $349,000 | ' | $349,000 | ' | $329,000 | ' | ' | ' |
Revenue | ' | ' | ' | 1,705,146 | 1,242,604 | 4,755,462 | 3,225,831 | ' | ' | ' | ' | 55,000 | 24,000 | 147,000 | 60,000 | ' | ' | ' | ' |
Reverse stock split ratio | ' | 0.4 | 0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 690,000 | ' | ' | 5,965,340 | ' | 5,965,340 | ' | ' | 1,349,936 | 3,286,700 | 10,000 | ' | ' | ' | ' | ' | 690,000 | 1,500,000 | ' |
Public offering price per share | $10 | ' | ' | ' | ' | ' | ' | ' | ' | $14 | ' | ' | ' | ' | ' | ' | $10 | $10 | ' |
Gross proceeds from public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,000,000 | ' | ' | ' | ' | ' | ' | 6,900,000 | 15,000,000 | ' |
Net proceeds from initial public offering | ' | ' | ' | ' | ' | 4,984,025 | -1,190,609 | ' | ' | 42,200,000 | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' |
Aggregate number of Series A and Series B convertible preferred stock converted into common stock | 1,287,325 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivative warrants | 7,200,000 | ' | ' | ' | ' | 7,170,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of debt converted | 9,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of debt into common stock | 963,430 | ' | ' | ' | ' | 12,596,066 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from secondary public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,200,000 | ' | ' | ' | ' | ' | ' | ' | 13,300,000 | ' |
Amount used for repayment of certain indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 |
Additional common stock sold at public offering | ' | ' | ' | ' | ' | ' | ' | 105,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105,000 |
Additional gross proceeds from issuance of shares | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 |
Additional net proceeds from issuance of shares | ' | ' | ' | ' | ' | ' | ' | $947,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $947,000 |
Underwriter's overallotment shares | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | 428,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization_Description_of_Bu3
Organization, Description of Business, Reverse Stock Splits and Initial Public Offering - Schedule of Net Proceeds from Public Offering (Detail) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Subsequent Event [Line Items] | ' | ' | ' |
Estimated other offering costs | ' | ' | ($3,343,289) |
Pro forma net proceeds | 4,984,025 | -1,190,609 | ' |
Pro Forma [Member] | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' |
Gross proceeds (including over-allotment) | 46,013,800 | ' | ' |
Underwriting discounts, expenses and commissions | -3,446,792 | ' | ' |
Estimated other offering costs | -315,850 | ' | ' |
Pro forma net proceeds | $42,251,158 | ' | ' |
Organization_Description_of_Bu4
Organization, Description of Business, Reverse Stock Splits and Initial Public Offering - Schedule of Balance Sheet Data and Pro Forma Balance Sheet Data (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Subsequent Event [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $9,878,176 | $819,906 | $903,257 | $2,417,256 |
Loan guarantee and financing fees | 621,000 | ' | ' | ' |
Accounts payable and accrued expenses | 1,807,081 | 4,578,761 | ' | ' |
Notes Payable, current portion | 43,622 | 3,836,567 | ' | ' |
Line of credit | 6,000,000 | 2,871,200 | ' | ' |
Warrant liability | 1,178,000 | 12,549,000 | ' | ' |
Common stock | 597 | 135 | ' | ' |
Additional paid-in capital | 63,681,317 | 24,970,255 | ' | ' |
Accumulated deficit | -58,800,191 | -48,934,585 | ' | ' |
Pro Forma [Member] | ' | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 52,129,334 | ' | ' | ' |
Loan guarantee and financing fees | 621,000 | ' | ' | ' |
Accounts payable and accrued expenses | 1,807,081 | ' | ' | ' |
Notes Payable, current portion | 43,622 | ' | ' | ' |
Line of credit | 6,000,000 | ' | ' | ' |
Warrant liability | 1,178,000 | ' | ' | ' |
Common stock | 925 | ' | ' | ' |
Additional paid-in capital | 105,932,147 | ' | ' | ' |
Accumulated deficit | ($58,800,191) | ' | ' | ' |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' |
Outstanding indebtedness | $6,000,000 | ' |
Outstanding indebtedness maturity date | 1-Apr-14 | ' |
Deferred offering costs reclassified to additional paid-in capital | 2,500,000 | ' |
Deferred offering cost | 617,706 | ' |
Offering costs discounted | 733,250 | ' |
Deferred cost expected to be refunded | 120,000 | ' |
Reclassification of offering costs to additional paid-in-capital | 1,800,000 | ' |
Income tax benefit | 663,900 | ' |
Accrued liability related to registration rights obligations associated with the issuance of Series B preferred stock and certain notes payable | $300,000 | $541,000 |
Significant_Accounting_Policie4
Significant Accounting Policies - Computation of Basic Net Income (Loss) and Diluted Net Loss Per Share Data (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Numerator: | ' | ' | ' | ' |
Net income (loss) | ($3,066,376) | $311,588 | ($9,848,164) | ($2,621,390) |
Less gain in fair value of warrant liability | -1,033,000 | 3,334,000 | 4,096,000 | 6,370,000 |
Net (loss) for diluted earnings per share | ($3,066,376) | ($3,022,412) | ($13,944,164) | ($8,991,390) |
Denominator: | ' | ' | ' | ' |
Weighted-average basic common shares outstanding | 5,055,591 | 1,346,124 | 3,463,730 | 1,340,530 |
Assumed conversion of dilutive securities: | ' | ' | ' | ' |
Common stock purchase warrants | ' | 9,554 | 4,897 | 9,554 |
Potentially dilutive common shares | ' | 9,554 | 4,897 | 9,554 |
Denominator for diluted earnings per share-adjusted weighted-average shares | 5,055,591 | 1,355,678 | 3,468,627 | 1,350,084 |
Basic net income (loss) per share | ($0.61) | $0.23 | ($2.84) | ($1.96) |
Diluted net loss per share | ($0.61) | ($2.23) | ($4.02) | ($6.66) |
Significant_Accounting_Policie5
Significant Accounting Policies - Summary of Potentially Dilutive Adjustments to Weighted Average Number of Common Shares Excluded from Calculation (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Securities excluded from calculation | 2,349,876 | 2,225,972 | 2,349,876 | 2,225,972 |
Warrants [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Securities excluded from calculation | 1,843,582 | 955,458 | 1,843,582 | 955,458 |
Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Securities excluded from calculation | 506,294 | 553,580 | 506,294 | 553,580 |
Series A Preferred Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Securities excluded from calculation | ' | 352,614 | ' | 352,614 |
Series B Preferred Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Securities excluded from calculation | ' | 364,320 | ' | 364,320 |
Revenue_and_Accounts_Receivabl2
Revenue and Accounts Receivable - Schedule of Revenue by Payor Type (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Revenue | $1,705,146 | $1,242,604 | $4,755,462 | $3,225,831 |
Medicare [Member] | ' | ' | ' | ' |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Revenue | 229,723 | 178,291 | 637,838 | 586,896 |
Direct Bill (Including Clinical Trials Clients) [Member] | ' | ' | ' | ' |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Revenue | 1,060,684 | 473,965 | 2,798,883 | 1,158,212 |
Grants and Royalty [Member] | ' | ' | ' | ' |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Revenue | 100,000 | 279,973 | 100,000 | 474,973 |
Insurance Carrier and All Others [Member] | ' | ' | ' | ' |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Revenue | $314,739 | $310,375 | $1,218,741 | $1,005,750 |
Revenue_and_Accounts_Receivabl3
Revenue and Accounts Receivable - Schedule of Accounts Receivable by Payor Type (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Allowance for doubtful accounts | ($36,000) | ($36,000) |
Accounts receivable, net | 1,616,134 | 850,545 |
Medicare [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable, gross | 520,153 | 193,024 |
Direct Bill (Including Clinical Trials Clients) [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable, gross | 585,034 | 339,763 |
Insurance Carrier and All Others [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable, gross | $546,947 | $353,758 |
Revenue_and_Accounts_Receivabl4
Revenue and Accounts Receivable - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Sites accounted for approximately 10% or more of our revenue | 2 | 3 | 2 | 3 |
Clinical Testing [Member] | ' | ' | ' | ' |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Percentage of revenue | 75.00% | 61.00% | 71.00% | 61.00% |
Community Hospitals [Member] | ' | ' | ' | ' |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Percentage of revenue | 36.00% | 56.00% | 37.00% | 47.00% |
Community Hospitals [Member] | 10% or More Clinical Revenue [Member] | ' | ' | ' | ' |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Percentage of revenue | 10.00% | ' | ' | 11.00% |
Clinical Trials Client [Member] | 10% or More Clinical Revenue [Member] | ' | ' | ' | ' |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Percentage of revenue | 44.00% | 15.00% | 40.00% | 12.00% |
University Teaching Center [Member] | 10% or More Clinical Revenue [Member] | ' | ' | ' | ' |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Percentage of revenue | ' | 12.00% | ' | 15.00% |
Community Hospital Network [Member] | 10% or More Clinical Revenue [Member] | ' | ' | ' | ' |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ' | ' | ' | ' |
Percentage of revenue | ' | 10.00% | ' | ' |
Notes_Payable_and_Lines_of_Cre2
Notes Payable and Lines of Credit - Summary of Short-Term and Long-Term Debt Obligations (Detail) (USD $) | Sep. 30, 2013 | Apr. 10, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' | ' |
Unamortized debt discount | ' | ' | ($243,300) |
Notes Payable, current portion | 43,622 | ' | 3,836,567 |
Line of Credit, Principal Balance | 6,000,000 | ' | 3,000,000 |
Unamortized Debt Discount | ' | -3,500,000 | -128,800 |
Line of Credit, Current Portion | 6,000,000 | ' | 2,871,200 |
Unamortized debt discount | ' | ' | -3,681,615 |
Notes payable, long-term | ' | ' | 2,440,683 |
Lines of Credit, Long-Term | ' | ' | 6,000,000 |
December 2011 Financing Transaction [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes Payable, current portion | ' | ' | 4,000,000 |
Notes payable, long-term | ' | ' | 2,000,000 |
2012 Convertible Debt Financing Transaction [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable, long-term | ' | ' | 3,000,000 |
Secured Note Payable [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes Payable, current portion | 43,622 | ' | 79,867 |
Notes payable, long-term | ' | ' | 22,298 |
December 2012 Bridge Financing Transaction [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable, long-term | ' | ' | 1,000,000 |
Other Note Payable [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable, long-term | ' | ' | $100,000 |
Notes_Payable_and_Lines_of_Cre3
Notes Payable and Lines of Credit - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||
Apr. 10, 2013 | Sep. 30, 2013 | Aug. 19, 2013 | Dec. 31, 2012 | Apr. 10, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Aug. 19, 2013 | Dec. 31, 2012 | Apr. 10, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Apr. 10, 2013 | Feb. 22, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Apr. 10, 2013 | Aug. 19, 2013 | Apr. 10, 2013 | Feb. 13, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 19, 2013 | Dec. 31, 2012 | Apr. 10, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 10, 2013 | Dec. 07, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 07, 2012 | Dec. 07, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
IPO [Member] | John Pappajohn [Member] | John Pappajohn [Member] | John Pappajohn [Member] | NNJCA [Member] | NNJCA [Member] | NNJCA [Member] | December 2011 Financing Transaction [Member] | December 2011 Financing Transaction [Member] | December 2011 Financing Transaction [Member] | December 2011 Financing Transaction [Member] | December 2011 Financing Transaction [Member] | December 2011 Financing Transaction [Member] | December 2011 Financing Transaction [Member] | December 2011 Financing Transaction [Member] | December 2011 Financing Transaction [Member] | December 2011 Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | Business Lines of Credit (DAM) [Member] | Business Lines of Credit (DAM) [Member] | Business Lines of Credit (DAM) [Member] | Business Lines of Credit (DAM) [Member] | Business Lines of Credit (DAM) [Member] | Business Lines of Credit (DAM) [Member] | Business Lines of Credit (DAM) [Member] | Business Lines of Credit (DAM) [Member] | Other Note Payable [Member] | Other Note Payable [Member] | Other Note Payable [Member] | December 2012 Bridge Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | Wells Fargo Bank [Member] | Secured Note Payable [Member] | Secured Note Payable [Member] | |||||
Financial Guarantee [Member] | Financial Guarantee [Member] | IPO [Member] | John Pappajohn [Member] | John Pappajohn [Member] | NNJCA [Member] | NNJCA [Member] | Dr. Pecora [Member] | IPO [Member] | IPO [Member] | John Pappajohn [Member] | John Pappajohn [Member] | John Pappajohn [Member] | Mr. Oman [Member] | IPO [Member] | IPO [Member] | IPO [Member] | John Pappajohn [Member] | John Pappajohn [Member] | ||||||||||||||||||||||||||||||||||
Financial Guarantee [Member] | Financial Guarantee [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings from utilization of line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,000,000 | ' | ' |
Debt instrument spread on variable rate | ' | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' | ' | ' | ' | ' | 1.75% | ' | ' |
Debt instrument maturity date | ' | 1-Apr-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Aug-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Apr-14 | ' | ' |
Interest on line of credit at end period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' |
Secured note interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.00% | ' |
Secured note outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,622 | 102,165 |
Remaining debt discount after conversion | 3,500,000 | ' | ' | 128,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued fee on debt instrument | 419,000 | 130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognizable conversion feature in converted debt | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt outstanding under credit agreement | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | 1,500,000 | ' | ' | 0 | ' | 6,000,000 | ' | ' | 4,000,000 | ' | 1,500,000 | 500,000 | 3,000,000 | ' | ' | ' | ' | ' | 1,750,000 | ' | 1,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' |
Conversion of outstanding debt to common stock | 9,600,000 | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | 4,500,000 | ' | ' | ' | ' | 4,000,000 | ' | 500,000 | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Shares | 963,430 | 12,596,066 | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | 450,000 | ' | ' | ' | ' | ' | ' | 450,000 | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | 13,430 | ' | ' | 100,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price of notes | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | $10 | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | $10 | ' | ' | ' | ' | $42.50 | ' | $10 | $10 | ' | ' | ' | ' | ' |
Outstanding balance, repaid | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument amount paid upon conversion of the notes | ' | 32,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
IPO funding period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '181 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants to purchase aggregate common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,059 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,353 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price | ' | $12.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42.50 | ' | ' | ' | $15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42.50 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants outstanding per share | ' | ' | ' | ' | ' | ' | $15 | $15 | ' | ' | $4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15 | ' | ' | ' |
Line of credit outstanding under credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2,000,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, repaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual interest rate equal to prime rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes payable, long-term | ' | ' | ' | 2,440,683 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | 22,298 |
Accrued interest on notes payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes_Payable_and_Lines_of_Cre4
Notes Payable and Lines of Credit - Conversion of Indebtedness into Shares of Common Stock (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||
Apr. 10, 2013 | Sep. 30, 2013 | Apr. 10, 2013 | Apr. 10, 2013 | Apr. 10, 2013 | Dec. 07, 2012 | Apr. 10, 2013 | Feb. 13, 2013 | Apr. 10, 2013 | |
December 2011 Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | Business Lines of Credit (DAM) [Member] | Business Lines of Credit (DAM) [Member] | Other Notes Payable and Accrued Interest [Member] | |||
Debt Conversion [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Converted Amount | $9,600,000 | ' | $4,500,000 | $3,000,000 | $1,000,000 | ' | $1,000,000 | $1,000,000 | $134,300 |
Common Shares | 963,430 | 12,596,066 | 450,000 | 300,000 | 100,000 | 100,000 | 100,000 | ' | 13,430 |
Letter_of_Credit_Additional_In
Letter of Credit - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Jun. 30, 2013 | Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Stand-by letter of credit | ' | $300,000 |
Letter of credit facility restricted amount | $50,000 | $250,000 |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||
Apr. 10, 2013 | Sep. 30, 2013 | Sep. 05, 2013 | Dec. 31, 2012 | Aug. 19, 2013 | Sep. 30, 2013 | Oct. 28, 2013 | Oct. 31, 2013 | Apr. 10, 2013 | Apr. 10, 2013 | Dec. 31, 2012 | Apr. 10, 2013 | Dec. 31, 2012 | |
Secondary Offering [Member] | Secondary Offering [Member] | Subsequent Event | Subsequent Event | Cleveland Clinic [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | |||||
Common stock, shares issued | 690,000 | 5,965,340 | ' | 1,349,936 | 1,500,000 | ' | 3,286,700 | 10,000 | 2,000 | ' | ' | ' | ' |
Underwriter's overallotment shares | 90,000 | ' | ' | ' | ' | ' | 428,700 | ' | ' | ' | ' | ' | ' |
Common stock sold at IPO, price per share | $10 | ' | ' | ' | $10 | ' | $14 | ' | ' | ' | ' | ' | ' |
Number of shares converted to common stock | 1,287,325 | ' | ' | ' | ' | ' | ' | ' | ' | 376,525 | ' | 910,800 | ' |
Gross proceeds from public offering | ' | ' | ' | ' | $15,000,000 | ' | $46,000,000 | ' | ' | ' | ' | ' | ' |
Net proceeds from secondary public offering | ' | ' | ' | ' | 13,300,000 | ' | 42,200,000 | ' | ' | ' | ' | ' | ' |
Additional common stock sold at public offering | ' | ' | 105,000 | ' | ' | 105,000 | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from issuance of shares | ' | ' | 1,100,000 | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' |
Additional net proceeds from issuance of shares | ' | ' | $947,000 | ' | ' | $947,000 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | 9,764,000 | ' | ' | ' | ' | ' | ' | ' | ' | 588,000 | ' | 2,000,000 |
Stock_Option_Plans_Additional_
Stock Option Plans - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||||
Apr. 10, 2013 | Apr. 17, 2013 | Apr. 05, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 10, 2013 | Oct. 03, 2013 | Oct. 08, 2013 | Oct. 10, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 05, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Oct. 10, 2013 | Oct. 10, 2013 | Oct. 10, 2013 | Oct. 10, 2013 | Oct. 10, 2013 | Oct. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 01, 2010 | Apr. 29, 2008 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 10, 2013 | |
Stock_Plan | Subsequent Event | Subsequent Event | Eight Employees Incentive Stock Options [Member] | Twelve Employees Incentive Stock Options [Member] | Employees [Member] | Employees [Member] | Non-Employees [Member] | Non-Employees [Member] | Non-Employees [Member] | Chief Executive Officer [Member] | Vice President Research and Development [Member] | Non-employee Directors [Member] | Mr. Brownlie, Chairman Audit Committee [Member] | Mr. Thompson, Chairman Audit Committee [Member] | Chairman of Audit Committee [Member] | 2011 Equity Incentive Plan [Member] | 2008 Stock Option Plan [Member] | 2008 Stock Option Plan [Member] | 2008 Stock Option Plan [Member] | Strike Price of $25.00 or More [Member] | Strike Price of $12.50 [Member] | Restricted Stock Awards [Member] | |||||
Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Non-employee Directors [Member] | |||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equity incentive plans | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000 | ' | ' | ' | ' | ' | ' |
Shares of common stock reserved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550,000 | 251,475 | ' | ' | ' |
Options granted maximum exercisable period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' |
Shares available for future awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000 | 91,706 | ' | ' | ' | ' | ' |
Issuance of shares under stock options plans | ' | ' | ' | 48,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options strike price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | $12.50 | ' |
Exchange options for number of options held with exercise price equal to initial public offering price, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | 80.00% | ' |
Price per share on equity offering | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | $10 | ' |
Outstanding stock options | ' | ' | 336,300 | 506,294 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial public offering exercisable lower price range | ' | ' | $12.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial public offering exercisable upper price range | ' | ' | $33.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial offering, options exchanged | ' | ' | 242,070 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price option | ' | $11.75 | $10 | ' | ' | $15.39 | $10 | $19.88 | $15.39 | ' | ' | ' | ' | ' | ' | ' | $15.39 | $15.39 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approved options issued | ' | ' | 53,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options issued, exercise price | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares approved by Board of Directors | ' | 5,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of common stock | ' | ' | ' | $20.26 | $9.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to nonvested stock options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | $768,129 | $846,810 | ' | $190,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to nonvested stock options granted expect to recognize, period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 6 months 26 days | '2 years 7 months 10 days | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of options exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount received from employee options exercised | ' | ' | ' | ' | ' | ' | 1,640 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock option purchased | ' | ' | ' | 59,350 | 2,400 | ' | 164 | 19,600 | 77,000 | ' | ' | ' | ' | ' | 200,000 | 10,000 | 10,000 | 12,312 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vesting period | ' | ' | ' | ' | ' | '5 years | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option expired | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted shares of common stock issued to Chief Executive Officer | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted, total | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Annual base fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' |
Annual fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000 | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 |
Stock options issued to purchase shares of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Option_Plans_Summary_of_
Stock Option Plans - Summary of Employee and Nonemployee Stock Option Activity (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Options Outstanding, Number of Shares Outstanding | ' | ' | ' |
Beginning balance | 553,340 | 559,990 | ' |
Granted | 59,350 | 2,400 | ' |
Cancelled or expired | -106,396 | -9,050 | ' |
Ending balance | 506,294 | 553,340 | 559,990 |
Exercisable | 393,580 | ' | ' |
Options Outstanding, Weighted-Average Exercise Price | ' | ' | ' |
Beginning balance | $12.76 | $12.85 | ' |
Granted | $10.17 | $33.80 | ' |
Cancelled or expired | $20.46 | $23.43 | ' |
Ending balance | $7.60 | $12.76 | $12.85 |
Exercisable | $7 | ' | ' |
Weighted-Average Remaining Contractual Term (in years) | ' | ' | ' |
Outstanding | '6 years 6 months 11 days | '7 years 1 month 17 days | '8 years 1 month 6 days |
Exercisable | '6 years 2 months 27 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding, beginning balance | $1,142,432 | $11,737,710 | ' |
Outstanding, ending balance | 6,407,644 | 1,142,432 | 11,737,710 |
Exercisable | $5,220,243 | ' | ' |
Stock_Option_Plans_Summary_of_1
Stock Option Plans - Summary of Outstanding and Vested Stock Options Granted (Detail) (USD $) | 1 Months Ended | 9 Months Ended |
Apr. 05, 2013 | Sep. 30, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise Price | $33.80 | ' |
Number of Shares Options Outstanding | 336,300 | 506,294 |
Weighted-Average Remaining Contractual Life, Options Outstanding (in years) | ' | '6 years 6 months 11 days |
Weighted-Average Exercise Price, Options Outstanding | ' | $7.60 |
Number of Shares Options Vested and Exercisable | ' | 393,580 |
Weighted-Average Exercise Price, Options Vested and Exercisable | ' | $7 |
Exercise Price 4.00 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise Price | ' | $4 |
Number of Shares Options Outstanding | ' | 175,000 |
Weighted-Average Remaining Contractual Life, Options Outstanding (in years) | ' | '5 years 6 months 29 days |
Weighted-Average Exercise Price, Options Outstanding | ' | $4 |
Number of Shares Options Vested and Exercisable | ' | 175,000 |
Weighted-Average Exercise Price, Options Vested and Exercisable | ' | $4 |
Exercise Price 4.80 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise Price | ' | $4.80 |
Number of Shares Options Outstanding | ' | 33,340 |
Weighted-Average Remaining Contractual Life, Options Outstanding (in years) | ' | '6 years 3 months 18 days |
Weighted-Average Exercise Price, Options Outstanding | ' | $4.80 |
Number of Shares Options Vested and Exercisable | ' | 25,459 |
Weighted-Average Exercise Price, Options Vested and Exercisable | ' | $4.80 |
Exercise Price 10.00 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise Price | ' | $10 |
Number of Shares Options Outstanding | ' | 292,154 |
Weighted-Average Remaining Contractual Life, Options Outstanding (in years) | ' | '7 years 22 days |
Weighted-Average Exercise Price, Options Outstanding | ' | $10 |
Number of Shares Options Vested and Exercisable | ' | 193,011 |
Weighted-Average Exercise Price, Options Vested and Exercisable | ' | $10 |
Exercise Price 11.75 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise Price | ' | $11.75 |
Number of Shares Options Outstanding | ' | 5,600 |
Weighted-Average Remaining Contractual Life, Options Outstanding (in years) | ' | '9 years 6 months 15 days |
Weighted-Average Exercise Price, Options Outstanding | ' | $11.75 |
Number of Shares Options Vested and Exercisable | ' | ' |
Weighted-Average Exercise Price, Options Vested and Exercisable | ' | $11.75 |
Exercise Price 12.50 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Exercise Price | ' | $12.50 |
Number of Shares Options Outstanding | ' | 200 |
Weighted-Average Remaining Contractual Life, Options Outstanding (in years) | ' | '7 years 2 months 9 days |
Weighted-Average Exercise Price, Options Outstanding | ' | $12.50 |
Number of Shares Options Vested and Exercisable | ' | 110 |
Weighted-Average Exercise Price, Options Vested and Exercisable | ' | $12.50 |
Stock_Option_Plans_WeightedAve
Stock Option Plans - Weighted-Average Assumptions Used to Estimate the Fair Value of Options Granted (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Employees [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Volatility | ' | ' | 77.11% | 77.39% |
Risk free interest rate | ' | ' | 0.76% | 1.43% |
Dividend yield | ' | ' | 0.00% | 0.00% |
Term (years) | ' | ' | '5 years 11 months 12 days | '6 years 6 months |
Weighted-average fair value of options granted during the period | ' | ' | 6.72 | 9.34 |
Non-Employees [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Volatility | 75.32% | 75.23% | 75.87% | 75.01% |
Risk free interest rate | 1.93% | 1.04% | 1.40% | 1.31% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Term (years) | '7 years 2 months 16 days | '8 years 1 month 6 days | '7 years 6 months | '8 years 4 months 6 days |
Stock_Option_Plans_Effects_of_
Stock Option Plans - Effects of Stock-Based Compensation Related to Stock Option Awards (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $117,333 | $201,483 | $310,982 | $766,167 |
Cost of Revenues [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 8,442 | 1,126 | 22,621 | 9,557 |
Research and Development [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 28,516 | 120,183 | 119,314 | 389,295 |
General and Administrative [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 71,268 | 62,426 | 223,535 | 223,150 |
Selling and Marketing [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $9,107 | $17,748 | $41,731 | $144,165 |
Warrants_Additional_Informatio
Warrants - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||
Sep. 27, 2013 | Sep. 10, 2013 | Jul. 06, 2013 | Jul. 08, 2013 | Apr. 29, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 11, 2013 | Feb. 22, 2013 | Sep. 30, 2013 | Feb. 11, 2013 | Feb. 22, 2013 | |
Subsequent Event | Minimum [Member] | Maximum [Member] | 2012 Convertible Debt Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | John Pappajohn [Member] | John Pappajohn [Member] | John Pappajohn [Member] | Certain Warrant Holders [Member] | Mr. Oman [Member] | |||||||||
Subsequent Event | Subsequent Event | 2012 Convertible Debt Financing Transaction [Member] | December 2012 Bridge Financing Transaction [Member] | 2012 Convertible Debt Financing Transaction [Member] | |||||||||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,353 | ' | 4,118 | ' | ' | 2,941 |
Fair value of warrants at the date of issue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $221,000 | ' | $47,000 | ' | ' | ' | ' | ' |
Term of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | '10 years | ' | ' | ' | ' | ' |
Price per share on equity offering | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | $10 | ' | $10 | ' | ' | ' | ' | ' |
Warrants exercise price | ' | ' | ' | ' | ' | ' | $12.30 | ' | ' | ' | ' | ' | $42.50 | $42.50 | ' | $15 | ' | ' | ' |
Maximum IPO price description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'If our final IPO price was below $15.00, there would be no further adjustment to the price or number of shares covered by the warrants held by him. | ' | ' |
Final IPO price to determine exercise price of the warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15 | ' | ' | ' | ' |
Adjusted exercise price of warrants on initial public offerings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15 | ' | ' | ' | ' |
Warrants to purchase common stock, issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 114,030 | ' |
Shares issuable on exercise of warrants | ' | ' | ' | ' | ' | ' | 838,889 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants effected with adjusted exercise price | ' | ' | ' | ' | ' | 1,656,860 | 1,656,860 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds form warrants exercised | ' | ' | ' | $96,000 | $96,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised to purchase common stock | ' | ' | 6,000 | 24,000 | 24,000 | ' | 30,034 | ' | 33,868 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock per share value on warrant exercised | ' | ' | $4 | $4 | $4 | ' | $10 | ' | ' | $10 | $14.10 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants, surrendered | ' | ' | 2,072 | ' | ' | ' | 14,313 | ' | 23,188 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants issued | ' | ' | 3,928 | ' | ' | ' | 9,412 | ' | 10,680 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant outstanding | ' | ' | ' | ' | ' | ' | 1,843,582 | 1,102,176 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended expiration date of warrant | '11 days | '17 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants_Summary_of_Warrant_Ac
Warrants - Summary of Warrant Activity (Detail) (USD $) | 1 Months Ended | 9 Months Ended |
Jul. 06, 2013 | Sep. 30, 2013 | |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $12.30 |
Warrants outstanding, beginning balance | ' | 1,102,176 |
Warrants issued | 3,928 | 9,412 |
Warrants exercised | ' | -84,034 |
Warrants expired | ' | -22,861 |
IPO adjustments | ' | 838,889 |
Warrants outstanding, ending balance | ' | 1,843,582 |
Warrant Issued With [Member] | Warrants Other Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $12.42 |
Warrants outstanding, beginning balance | ' | 293,617 |
Warrants issued | ' | ' |
Warrants exercised | ' | -54,000 |
Warrants expired | ' | -22,861 |
IPO adjustments | ' | 1,531,696 |
Warrants outstanding, ending balance | ' | 1,748,452 |
Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $10 |
Warrants outstanding, beginning balance | ' | 808,559 |
Warrants issued | ' | 9,412 |
Warrants exercised | ' | -30,034 |
Warrants expired | ' | ' |
IPO adjustments | ' | -692,807 |
Warrants outstanding, ending balance | ' | 95,130 |
Debt Guarantee [Member] | Warrant Issued With [Member] | Warrants Other Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $4 |
Warrants outstanding, beginning balance | ' | 228,288 |
Warrants issued | ' | ' |
Warrants exercised | ' | -54,000 |
Warrants expired | ' | ' |
IPO adjustments | ' | ' |
Warrants outstanding, ending balance | ' | 174,288 |
Debt Guarantee [Member] | Warrant Issued With [Member] | Warrants Other Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $10 |
Warrants outstanding, beginning balance | ' | ' |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | 237,500 |
Warrants outstanding, ending balance | ' | 237,500 |
Debt Guarantee [Member] | Warrant Issued With [Member] | Warrants Other Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $15 |
Warrants outstanding, beginning balance | ' | ' |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | 585,645 |
Warrants outstanding, ending balance | ' | 585,645 |
Debt Guarantee [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $10 |
Warrants outstanding, beginning balance | ' | ' |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | 12,500 |
Warrants outstanding, ending balance | ' | 12,500 |
Debt Guarantee [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $25 |
Warrants outstanding, beginning balance | ' | 212,000 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -212,000 |
Warrants outstanding, ending balance | ' | ' |
Debt Guarantee [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $25 |
Warrants outstanding, beginning balance | ' | 95,000 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -95,000 |
Warrants outstanding, ending balance | ' | ' |
Debt Guarantee [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $25 |
Warrants outstanding, beginning balance | ' | 5,000 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -5,000 |
Warrants outstanding, ending balance | ' | ' |
Debt Guarantee [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $32.45 |
Warrants outstanding, beginning balance | ' | 40,000 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -40,000 |
Warrants outstanding, ending balance | ' | ' |
Debt Guarantee [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $42.50 |
Warrants outstanding, beginning balance | ' | 38,392 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -38,392 |
Warrants outstanding, ending balance | ' | ' |
Debt Guarantee [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $42.50 |
Warrants outstanding, beginning balance | ' | 37,000 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -37,000 |
Warrants outstanding, ending balance | ' | ' |
Series A Preferred Stock [Member] | Warrant Issued With [Member] | Warrants Other Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $14.10 |
Warrants outstanding, beginning balance | ' | 65,329 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | -22,861 |
IPO adjustments | ' | ' |
Warrants outstanding, ending balance | ' | 42,468 |
Series B Preferred Stock [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $10 |
Warrants outstanding, beginning balance | ' | ' |
Warrants issued | ' | ' |
Warrants exercised | ' | -30,034 |
Warrants expired | ' | ' |
IPO adjustments | ' | 52,464 |
Warrants outstanding, ending balance | ' | 22,430 |
Series B Preferred Stock [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $25 |
Warrants outstanding, beginning balance | ' | 52,464 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -52,464 |
Warrants outstanding, ending balance | ' | ' |
Financing [Member] | Warrant Issued With [Member] | Warrants Other Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $10 |
Warrants outstanding, beginning balance | ' | ' |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | 243,334 |
Warrants outstanding, ending balance | ' | 243,334 |
Financing [Member] | Warrant Issued With [Member] | Warrants Other Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $15 |
Warrants outstanding, beginning balance | ' | ' |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | 436,079 |
Warrants outstanding, ending balance | ' | 436,079 |
Consulting [Member] | Warrant Issued With [Member] | Warrants Other Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $10 |
Warrants outstanding, beginning balance | ' | ' |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | 29,138 |
Warrants outstanding, ending balance | ' | 29,138 |
Financing [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $10 |
Warrants outstanding, beginning balance | ' | ' |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | 60,000 |
Warrants outstanding, ending balance | ' | 60,000 |
Financing [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $25 |
Warrants outstanding, beginning balance | ' | 60,000 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -60,000 |
Warrants outstanding, ending balance | ' | ' |
Financing [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $42.50 |
Warrants outstanding, beginning balance | ' | 75,294 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -75,294 |
Warrants outstanding, ending balance | ' | ' |
Financing [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $42.50 |
Warrants outstanding, beginning balance | ' | 54,314 |
Warrants issued | ' | 2,941 |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -57,255 |
Warrants outstanding, ending balance | ' | ' |
Financing [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $42.50 |
Warrants outstanding, beginning balance | ' | 120,865 |
Warrants issued | ' | 6,471 |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -127,336 |
Warrants outstanding, ending balance | ' | ' |
Consulting [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $10 |
Warrants outstanding, beginning balance | ' | ' |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | 200 |
Warrants outstanding, ending balance | ' | 200 |
Consulting [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $12.50 |
Warrants outstanding, beginning balance | ' | 4,030 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -4,030 |
Warrants outstanding, ending balance | ' | ' |
Consulting [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $14.10 |
Warrants outstanding, beginning balance | ' | 10,000 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -10,000 |
Warrants outstanding, ending balance | ' | ' |
Consulting [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $25 |
Warrants outstanding, beginning balance | ' | 200 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -200 |
Warrants outstanding, ending balance | ' | ' |
Consulting [Member] | Warrant Issued For [Member] | Warrant Derivative [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Warrants, exercise price | ' | $25 |
Warrants outstanding, beginning balance | ' | 4,000 |
Warrants issued | ' | ' |
Warrants exercised | ' | ' |
Warrants expired | ' | ' |
IPO adjustments | ' | -4,000 |
Warrants outstanding, ending balance | ' | ' |
Warrants_Summary_of_Warrant_Ac1
Warrants - Summary of Warrant Activity (Parenthetical) (Detail) (USD $) | 1 Months Ended | ||
Apr. 10, 2013 | Sep. 30, 2013 | Feb. 11, 2013 | |
IPO [Member] | |||
Class of Warrant or Right [Line Items] | ' | ' | ' |
Share price of warrants held by related party | ' | ' | $15 |
Warrants held by director in total | ' | ' | 530,022 |
Share price of common stock at the completion of IPO | $10 | ' | ' |
Shares issuable on exercise of warrants outstanding | 838,889 | ' | ' |
Number of warrants effected with adjusted exercise price | 1,656,860 | 1,656,860 | ' |
Fair_Value_of_Warrants_Assumpt
Fair Value of Warrants - Assumptions Used in Computing Fair Value of Derivative Warrants (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Apr. 05, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Financing [Member] | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' |
Exercise Price | $10 | $13.21 | $9.60 | $42.50 | $13.34 | $42.50 |
Expected life (years) | '2 years 6 months | '8 years 3 months 18 days | '6 years 7 months 28 days | '5 years 29 days | '9 years 9 months 11 days | '4 years 11 months 5 days |
Expected volatility | 63.12% | 73.22% | 73.38% | 79.36% | 74.70% | 79.41% |
Risk-free interest rate | 0.63% | 1.44% | 1.06% | 0.71% | 1.95% | 0.79% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Consulting [Member] | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' |
Exercise Price | $10 | $10 | $9.60 | ' | $10 | ' |
Expected life (years) | '2 years 4 months 21 days | '2 years 3 months 29 days | '2 years 5 months 23 days | ' | ' | ' |
Expected volatility | 63.81% | 63.20% | 63.29% | ' | ' | ' |
Risk-free interest rate | 0.33% | 0.27% | 0.28% | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% | ' | ' | ' |
Series B Preferred Stock [Member] | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' |
Exercise Price | $10 | ' | $9.60 | ' | $10 | ' |
Expected life (years) | '2 years 2 months 1 day | ' | '2 years 11 months 1 day | ' | ' | ' |
Expected volatility | 65.18% | ' | 61.44% | ' | ' | ' |
Risk-free interest rate | 0.33% | ' | 0.36% | ' | ' | ' |
Expected dividend yield | 0.00% | ' | 0.00% | ' | ' | ' |
Debt Guarantee [Member] | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' |
Exercise Price | $10 | $13.56 | $9.60 | $42.50 | $10 | $42.50 |
Expected life (years) | '1 year 29 days | '2 years 5 months 1 day | '2 years 7 months 28 days | ' | ' | '4 years 8 months 23 days |
Expected volatility | 57.51% | 66.37% | 67.71% | ' | ' | 80.47% |
Risk-free interest rate | 0.10% | 0.32% | 0.37% | ' | ' | 0.90% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | ' | ' | 0.00% |
Fair_Value_of_Warrants_Additio
Fair Value of Warrants - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | |||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value of stock price in computing fair value for warrants issued | ' | ' | $9.60 | $18.70 | $20.26 | $33.80 |
Fair value of warrants issue price | $20.26 | $9.60 | ' | ' | ' | ' |
Fair_Value_of_Warrants_Summary
Fair Value of Warrants - Summary of Derivative Warrant Activity (Detail) (USD $) | 1 Months Ended | 9 Months Ended |
Apr. 10, 2013 | Sep. 30, 2013 | |
Class of Warrant or Right [Line Items] | ' | ' |
Beginning balance | ' | $12,549,000 |
Fair value of warrants issued | ' | 268,000 |
Reclassification to equity in IPO | -7,200,000 | -7,170,000 |
Warrants Exercised | ' | -373,000 |
Change in fair value of warrants | ' | -4,096,000 |
Ending balance | ' | 1,178,000 |
Series B Preferred Stock [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Beginning balance | ' | 230,000 |
Fair value of warrants issued | ' | ' |
Reclassification to equity in IPO | ' | ' |
Warrants Exercised | ' | -373,000 |
Change in fair value of warrants | ' | 422,000 |
Ending balance | ' | 279,000 |
Debt Guarantee [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Beginning balance | ' | 5,679,000 |
Fair value of warrants issued | ' | ' |
Reclassification to equity in IPO | ' | -2,514,000 |
Warrants Exercised | ' | ' |
Change in fair value of warrants | ' | -3,026,000 |
Ending balance | ' | 139,000 |
Consulting [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Beginning balance | ' | 147,000 |
Fair value of warrants issued | ' | ' |
Reclassification to equity in IPO | ' | -108,000 |
Warrants Exercised | ' | ' |
Change in fair value of warrants | ' | -36,000 |
Ending balance | ' | 3,000 |
Financing [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Beginning balance | ' | 6,493,000 |
Fair value of warrants issued | ' | 268,000 |
Reclassification to equity in IPO | ' | -4,548,000 |
Warrants Exercised | ' | ' |
Change in fair value of warrants | ' | -1,456,000 |
Ending balance | ' | $757,000 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Warrant liability | $1,178,000 | $12,549,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Warrant liability | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Warrant liability | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Warrant liability | $1,178,000 | $12,549,000 |
Fair_Value_Measurements_Summar1
Fair Value Measurements - Summary of Activity for Liabilities Measured at Fair Value Using Level 3 Inputs (Detail) (USD $) | 1 Months Ended | 9 Months Ended | |
Apr. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Fair Value Disclosures [Abstract] | ' | ' | ' |
Balance as of January 1 | ' | $12,549,000 | $11,113,000 |
Issuances of derivative financial instruments | ' | 268,000 | 3,678,000 |
Derivative financial instruments reclassified to equity in IPO | -7,200,000 | -7,170,000 | ' |
Derivative financial instruments reclassified to equity upon exercise | ' | -373,000 | ' |
Unrealized (gain) loss related to change in fair value | ' | -4,096,000 | -6,370,000 |
Balance as of September 30 | ' | $1,178,000 | $8,421,000 |
Joint_Venture_Agreement_Additi
Joint Venture Agreement - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Apr. 10, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | Oct. 28, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 |
In Millions, except Share data, unless otherwise specified | Subsequent Event | Subsequent Event | Joint Venture Agreement [Member] | Joint Venture Agreement [Member] | Joint Venture Agreement [Member] | |||
Subsequent Event | Maximum [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Entered into agreement date | ' | ' | ' | ' | ' | 30-Nov-11 | ' | ' |
Percentage of outstanding membership interests in joint venture | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Capital contribution in exchange of membership interests | ' | ' | ' | ' | ' | $4 | $1 | $5 |
Fair value of capital contribution in joint venture | ' | ' | ' | ' | ' | $6 | ' | ' |
Common stock, shares issued | 5,965,340 | 690,000 | 1,349,936 | 10,000 | 3,286,700 | ' | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||
Apr. 10, 2013 | Sep. 30, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 15, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Extension | IPO [Member] | Consulting and Advisory Agreement [Member] | Consulting and Advisory Agreement [Member] | Consulting and Advisory Agreement [Member] | Financial Guarantee [Member] | John Pappajohn [Member] | John Pappajohn [Member] | John Pappajohn [Member] | NNJCA [Member] | NNJCA [Member] | NNJCA [Member] | Dr. Pecora [Member] | Dr. Pecora [Member] | Dr. Pecora [Member] | Equity Dynamics, Inc. [Member] | Equity Dynamics, Inc. [Member] | Equity Dynamics, Inc. [Member] | Dr. Chaganti [Member] | Dr. Chaganti [Member] | ||
Financial Guarantee [Member] | Financial Guarantee [Member] | ||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of revolving line of credit extensions facility | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock purchased | ' | ' | ' | ' | ' | ' | 284,000 | ' | 202,630 | 1,051,506 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock exercised | ' | 84,034 | ' | ' | ' | ' | 395,825 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants adjusted in conjunction with IPO | ' | ' | ' | ' | ' | ' | ' | ' | 436,079 | 585,645 | ' | ' | 44,288 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants outstanding per share | ' | ' | ' | ' | ' | ' | ' | ' | $15 | $15 | ' | ' | $4 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional amount of loan received | ' | ' | ' | ' | ' | ' | ' | ' | $6,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt outstanding under credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of outstanding indebtedness to common stock | 9,600,000 | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Shares | 963,430 | 12,596,066 | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price of notes | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument spread on variable rate | ' | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued fee on debt instrument | 419,000 | 130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument amount paid upon conversion of the notes | ' | 32,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes issued to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' |
Interest rate due to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.50% | ' |
Interest expenses on notes issued to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,357 | 6,300 |
Stock options issued to purchase shares of common stock | ' | ' | ' | 36,000 | 36,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000 | ' | ' | ' | ' | ' | ' |
Common stock price | ' | ' | ' | $10 | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' |
Common stock, vesting period | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' |
Consulting and advisory agreement expenses under stock option plan | ' | ' | ' | ' | 76,220 | 367,050 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 142,740 | ' | ' | ' | ' | ' |
Consulting agreement period | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' |
Agreement with related party, fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | 10,000 | ' | ' | 5,000 | ' |
Agreement with related party, consulting fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000 | 90,000 | 45,000 | 45,000 |
Due to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000 | ' | ' | ' |