Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 08, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ISCO | |
Entity Registrant Name | International Stem Cell CORP | |
Entity Central Index Key | 0001355790 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity File Number | 0-51891 | |
Entity Tax Identification Number | 20-4494098 | |
Entity Address, Address Line One | 5950 Priestly Drive | |
Entity Address, City or Town | Carlsbad | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92008 | |
City Area Code | 760 | |
Local Phone Number | 940-6383 | |
Entity Common Stock, Shares Outstanding | 7,533,083 | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash | $ 463,000 | $ 1,075,000 |
Accounts receivable, net | 1,080,000 | 651,000 |
Inventory, net | 1,409,000 | 1,501,000 |
Prepaid expenses and other current assets | 307,000 | 543,000 |
Total current assets | 3,259,000 | 3,770,000 |
Non-current inventory | 745,000 | 805,000 |
Property and equipment, net | 691,000 | 469,000 |
Intangible assets, net | 2,691,000 | 2,674,000 |
Right-of-use assets | 784,000 | |
Deposits and other assets | 90,000 | 78,000 |
Total assets | 8,260,000 | 7,796,000 |
Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' Equity (Deficit) | ||
Accounts payable | 722,000 | 458,000 |
Accrued liabilities | 651,000 | 579,000 |
Operating lease liabilities, current | 236,000 | |
Related party payable | 1,848,000 | 2,045,000 |
Advances | 250,000 | 250,000 |
Warrant liability | 1,745,000 | |
Total current liabilities | 3,707,000 | 5,077,000 |
Long-term deferred rent | 182,000 | |
Operating lease liabilities, net of current portion | 929,000 | |
Total liabilities | 4,636,000 | 5,259,000 |
Commitments and Contingencies | ||
Stockholders' Equity (Deficit) | ||
Common stock, $0.001 par value, 120,000,000 shares authorized, 7,533,083 and 6,933,861 shares issued and outstanding at September 30, 2019 and December 31, 2018 | 8,000 | 7,000 |
Additional paid-in capital | 102,988,000 | 109,188,000 |
Accumulated deficit | (103,677,000) | (106,663,000) |
Total stockholders' equity (deficit) | (676,000) | 2,537,000 |
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | 8,260,000 | 7,796,000 |
Series B Preferred Stock [Member] | ||
Stockholders' Equity (Deficit) | ||
Convertible Preferred stock | ||
Series G Preferred Stock [Member] | ||
Stockholders' Equity (Deficit) | ||
Convertible Preferred stock | 5,000 | 5,000 |
Series D Preferred Stock [Member] | ||
Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' Equity (Deficit) | ||
Series D Redeemable Convertible Preferred stock, $0.001 par value, 50 shares authorized, 43 issued and outstanding, with liquidation preference of $4,300 at September 30, 2019 | 4,300,000 | |
Series I-1 Preferred Stock [Member] | ||
Stockholders' Equity (Deficit) | ||
Convertible Preferred stock | ||
Series D Preferred Stock [Member] | ||
Stockholders' Equity (Deficit) | ||
Convertible Preferred stock | ||
Series I-2 Preferred Stock [Member] | ||
Stockholders' Equity (Deficit) | ||
Convertible Preferred stock |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value | $ 0.001 | |
Preferred stock, shares authorized | 20,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 7,533,083 | 6,933,861 |
Common stock, shares outstanding | 7,533,083 | 6,933,861 |
Series D Preferred Stock [Member] | ||
Temporary equity, par value | $ 0.001 | |
Temporary equity, shares authorized | 50 | |
Temporary equity, shares issued | 43 | |
Temporary equity, shares outstanding | 43 | |
Temporary equity, liquidation preference | $ 4,300 | |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 250,000 | 250,000 |
Preferred stock, shares outstanding | 250,000 | 250,000 |
Liquidation preference | $ 423 | $ 411 |
Series D Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | |
Preferred stock, shares authorized | 50 | |
Preferred stock, shares issued | 43 | |
Preferred stock, shares outstanding | 43 | |
Liquidation preference | $ 4,300 | |
Series G Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 5,000,000 | 5,000,000 |
Liquidation preference | $ 5,000 | $ 5,000 |
Series I-1 Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 814 | 814 |
Preferred stock, shares outstanding | 814 | 814 |
Liquidation preference | $ 814 | $ 814 |
Series I-2 Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 4,310 | 4,310 |
Preferred stock, shares issued | 4,310 | 4,310 |
Preferred stock, shares outstanding | 4,310 | 4,310 |
Liquidation preference | $ 4,310 | $ 4,310 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Total revenues | $ 2,096 | $ 3,195 | $ 6,635 | $ 8,866 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Expenses | ||||
Cost of sales | $ 799 | $ 1,315 | $ 2,497 | $ 3,235 |
Research and development | 79 | 616 | 1,001 | 1,879 |
Selling and marketing | 626 | 608 | 2,057 | 1,940 |
General and administrative | 1,405 | 1,319 | 4,324 | 4,026 |
Total expenses | 2,909 | 3,858 | 9,879 | 11,080 |
Loss from operations | (813) | (663) | (3,244) | (2,214) |
Other income (expense) | ||||
Change in fair value of warrant liability | 837 | 758 | 1,745 | 1,092 |
Interest expense | (21) | (17) | (55) | (26) |
Miscellaneous income | 43 | 2 | 45 | |
Total other income (expense), net | 816 | 784 | 1,692 | 1,111 |
Net income (loss) | 3 | 121 | (1,552) | (1,103) |
Net income (loss) applicable to common stockholders | $ 3 | $ 121 | $ (1,552) | $ (1,103) |
Net income (loss) per common share-basic | $ 0 | $ 0.02 | $ (0.21) | $ (0.18) |
Net income (loss) per common share-diluted | $ 0 | $ 0.02 | $ (0.21) | $ (0.18) |
Weighted average shares-basic | 7,546 | 6,337 | 7,502 | 6,233 |
Weighted average shares-diluted | 7,546 | 6,404 | 7,502 | 6,233 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Series D Redeemable Convertible Preferred Stock [Member] | Preferred Stock [Member]Series B Convertible Preferred Stock [Member] | Preferred Stock [Member]Series G Convertible Preferred Stock [Member] | Preferred Stock [Member]Series I One Convertible Preferred Stock [Member] | Preferred Stock [Member]Series I Two Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2017 | $ 2,064 | $ 5 | $ 6 | $ 106,585 | $ (104,532) | ||||
Beginning balance, shares at Dec. 31, 2017 | 250 | 5,000 | 1 | 4 | 6,057 | ||||
Issuance of common stock | |||||||||
for services | 8 | 8 | |||||||
for services, shares | 6 | ||||||||
from exercise of options | 90 | 90 | |||||||
from exercise of options, shares | 82 | ||||||||
Conversion of preferred stock, shares | 50 | ||||||||
Stock-based compensation | 307 | 307 | |||||||
Net income (loss) | (830) | (830) | |||||||
Ending balance at Mar. 31, 2018 | 1,639 | $ 5 | $ 6 | 106,990 | (105,362) | ||||
Ending balance, shares at Mar. 31, 2018 | 250 | 5,000 | 1 | 4 | 6,195 | ||||
Beginning balance at Dec. 31, 2017 | 2,064 | $ 5 | $ 6 | 106,585 | (104,532) | ||||
Beginning balance, shares at Dec. 31, 2017 | 250 | 5,000 | 1 | 4 | 6,057 | ||||
Issuance of common stock | |||||||||
Net income (loss) | (1,103) | ||||||||
Ending balance at Sep. 30, 2018 | 2,786 | $ 5 | $ 7 | 108,409 | (105,635) | ||||
Ending balance, shares at Sep. 30, 2018 | 250 | 5,000 | 1 | 4 | 6,600 | ||||
Beginning balance at Mar. 31, 2018 | 1,639 | $ 5 | $ 6 | 106,990 | (105,362) | ||||
Beginning balance, shares at Mar. 31, 2018 | 250 | 5,000 | 1 | 4 | 6,195 | ||||
Issuance of common stock | |||||||||
for services | 7 | 7 | |||||||
for services, shares | 4 | ||||||||
from exercise of options | 34 | 34 | |||||||
from exercise of options, shares | 27 | ||||||||
Conversion of preferred stock, shares | 70 | ||||||||
Stock-based compensation | 357 | 357 | |||||||
Net income (loss) | (394) | (394) | |||||||
Ending balance at Jun. 30, 2018 | 1,643 | $ 5 | $ 6 | 107,388 | (105,756) | ||||
Ending balance, shares at Jun. 30, 2018 | 250 | 5,000 | 1 | 4 | 6,296 | ||||
Issuance of common stock | |||||||||
for cash | 500 | $ 1 | 499 | ||||||
for cash, shares | 286 | ||||||||
from exercise of options | 21 | 21 | |||||||
from exercise of options, shares | 18 | ||||||||
Stock-based compensation | 501 | 501 | |||||||
Net income (loss) | 121 | 121 | |||||||
Ending balance at Sep. 30, 2018 | 2,786 | $ 5 | $ 7 | 108,409 | (105,635) | ||||
Ending balance, shares at Sep. 30, 2018 | 250 | 5,000 | 1 | 4 | 6,600 | ||||
Beginning balance at Dec. 31, 2018 | 2,537 | $ 5 | $ 7 | 109,188 | (106,663) | ||||
Beginning balance, shares at Dec. 31, 2018 | 250 | 5,000 | 1 | 4 | 6,934 | ||||
Issuance of common stock | |||||||||
Out of period correction (Note 2) | (4,300) | (8,837) | 4,537 | ||||||
Out of period correction (Note 2), Redeemable Convertible Redeemable Preferred Stock | $ 4,300 | ||||||||
Conversion of debt | 1,049 | $ 1 | 1,048 | ||||||
Conversion of debt, shares | 599 | ||||||||
Stock-based compensation | 506 | 506 | |||||||
Net income (loss) | (906) | (906) | |||||||
Ending balance at Mar. 31, 2019 | (1,114) | $ 5 | $ 8 | 101,905 | (103,032) | ||||
Ending balance at Mar. 31, 2019 | 4,300 | ||||||||
Ending balance, shares at Mar. 31, 2019 | 250 | 5,000 | 1 | 4 | 7,533 | ||||
Beginning balance at Dec. 31, 2018 | 2,537 | $ 5 | $ 7 | 109,188 | (106,663) | ||||
Beginning balance, shares at Dec. 31, 2018 | 250 | 5,000 | 1 | 4 | 6,934 | ||||
Issuance of common stock | |||||||||
Conversion of debt | 1,049 | ||||||||
Net income (loss) | (1,552) | ||||||||
Ending balance at Sep. 30, 2019 | (676) | $ 5 | $ 8 | 102,988 | (103,677) | ||||
Ending balance at Sep. 30, 2019 | 4,300 | ||||||||
Ending balance, shares at Sep. 30, 2019 | 250 | 5,000 | 1 | 4 | 7,533 | ||||
Beginning balance at Mar. 31, 2019 | (1,114) | $ 5 | $ 8 | 101,905 | (103,032) | ||||
Beginning balance, shares at Mar. 31, 2019 | 250 | 5,000 | 1 | 4 | 7,533 | ||||
Beginning balance at Mar. 31, 2019 | 4,300 | ||||||||
Issuance of common stock | |||||||||
Stock-based compensation | 571 | 571 | |||||||
Net income (loss) | (648) | (648) | |||||||
Ending balance at Jun. 30, 2019 | (1,191) | $ 5 | $ 8 | 102,476 | (103,680) | ||||
Ending balance at Jun. 30, 2019 | 4,300 | ||||||||
Ending balance, shares at Jun. 30, 2019 | 250 | 5,000 | 1 | 4 | 7,533 | ||||
Issuance of common stock | |||||||||
Stock-based compensation | 512 | 512 | |||||||
Net income (loss) | 3 | 3 | |||||||
Ending balance at Sep. 30, 2019 | $ (676) | $ 5 | $ 8 | $ 102,988 | $ (103,677) | ||||
Ending balance at Sep. 30, 2019 | $ 4,300 | ||||||||
Ending balance, shares at Sep. 30, 2019 | 250 | 5,000 | 1 | 4 | 7,533 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (1,552) | $ (1,103) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 203 | 215 |
Impairment of intangible assets | 145 | 361 |
Stock-based compensation expense | 1,589 | 1,165 |
Common stock issued for services | 15 | |
Change in fair value of warrant liability | (1,745) | (1,092) |
Gain on settlement of trade payables | (32) | |
Allowance for inventory obsolescence | 89 | 62 |
Interest expense on bridge loan from related party | 51 | 25 |
Loss on disposal of property and equipment | 1 | |
Changes in operating assets and liabilities | ||
Accounts receivable | (429) | (1,080) |
Inventory | 63 | (311) |
Prepaid expenses and other current assets | 387 | 267 |
Deposits and other assets | (12) | 10 |
Right-of-use assets under lease obligations | 222 | |
Accounts payable | 264 | 249 |
Accrued liabilities | 90 | 132 |
Operating lease liabilities | (224) | |
Net cash used in operating activities | (859) | (1,116) |
Cash flows from investing activities | ||
Purchases of property and equipment | (146) | (157) |
Payments for patent licenses and trademarks | (250) | (372) |
Net cash used in investing activities | (396) | (529) |
Cash flows from financing activities | ||
Proceeds from a bridge loan from a related party | 800 | 2,000 |
Proceeds from sale of common stock | 500 | |
Proceeds from exercise of stock options | 145 | |
Payments on financed insurance premiums | (157) | (143) |
Net cash provided by financing activities | 643 | 2,502 |
Net (decrease) increase in cash | (612) | 857 |
Cash, beginning of period | 1,075 | 304 |
Cash, end of period | 463 | $ 1,161 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 4 | |
Supplemental disclosure of non-cash investing and financing activities | ||
Conversion of debt | 1,049 | |
Financed insurance premiums | $ 151 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | 1. Organization and Significant Accounting Policies Organization and Business International Stem Cell Corporation (the “Company”) was organized in Delaware in June 2005 and is publicly traded in OTC QX. The Company is a research and development company, for the therapeutic market, which has focused on advancing potential clinical applications of human parthenogenetic stem cells (“hpSCs”) for the treatment of various diseases of the central nervous system and liver diseases. The Company has the following wholly-owned subsidiaries: • Lifeline Cell Technology, LLC ("LCT”) – for the biomedical market, develops, manufactures and commercializes primary human cell research products including over 208 human cell culture products, including frozen human “primary” cells and the reagents (called “media”) needed to grow, maintain and differentiate the cells; • Lifeline Skin Care, Inc. ("LSC”) – for the anti-aging cosmetic market, develops, manufactures and markets a category of anti-aging cosmetic skin care products based on the Company’s proprietary parthenogenetic stem cell technology and small molecule technology; • Cyto Therapeutics Pty. Ltd. ("Cyto Therapeutics”) – performs research and development for the Therapeutic Market and is currently conducting clinical trials in Australia for the use of ISC-hpNSC® in the treatment of Parkinson’s disease. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and the results of its operations and cash flows for the periods presented. The unaudited condensed balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by GAAP for annual financial statements. The operating results presented in these unaudited interim condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2018 included in the Company’s annual report on Form 10-K filed with the SEC on April 19, 2019. Principles of Consolidation The consolidated financial statements include the accounts of International Stem Cell Corporation and its subsidiaries after intercompany balances and transactions have been eliminated. Liquidity and Going Concern The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern, which assumes that the Company will realize its assets and satisfy its liabilities in the normal course of business. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of the uncertainty concerning the Company’s ability to continue as a going concern. The Company has an accumulated deficit of approximately $103,700,000 as of September 30, 2019 and has incurred net losses and has had negative operating cash flows since inception. The Company has had no revenue from its principal operations in therapeutic and clinical product development through research and development efforts. Based on cash on-hand at September 30, 2019 of $463,000 and anticipated cash burn, the Company estimates it has existing resources to fund the Company’s principal operations into the first quarter of 2020. There can be no assurance that the Company will be successful in maintaining normal operating cash flow or obtaining additional funding. The Company continues to evaluate various financing sources and options to raise working capital to help fund current research and development programs and operations. The Company will need to obtain significant additional capital from sources including the exercise of outstanding warrants, equity and/or debt financings, license arrangements, grants and/or collaborative research arrangements to sustain its operations and develop products. The timing and degree of any future capital requirements will depend on many factors, including: • the accuracy of the assumptions underlying the estimates for capital needs in 2019 and beyond; • the extent that revenues from sales of LSC and LCT products cover the related costs and provide capital; • scientific progress in research and development programs; • the magnitude and scope of the Company’s research and development programs and its ability to establish, enforce and maintain strategic arrangements for research, development, clinical testing, manufacturing and marketing; • the progress with preclinical development and clinical trials; • the time and costs involved in obtaining regulatory approvals; • the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing patent claims; and • the number and type of product candidates that the Company decides to pursue. Additional financing through strategic collaborations, public or private equity financings or other financing sources may not be available on acceptable terms, or at all. Additional equity financing could result in significant dilution to stockholders. Additional debt financing may be expensive and require the Company to pledge all or a substantial portion of its assets. Further, if additional funds are obtained through arrangements with collaborative partners, these arrangements may require the Company to relinquish rights to some of its technologies, product candidates or products that the Company would otherwise seek to develop and commercialize on its own. If sufficient capital is not available, the Company may be required to delay, reduce the scope of or eliminate one or more of its product initiatives. Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. There were no cash equivalents as of September 30, 2019 and December 31, 2018. Inventory Inventory is accounted for using the average cost and first-in, first-out (FIFO) methods for LCT cell culture media and reagents, average cost and specific identification methods for LSC products, and specific identification method for LCT products. Inventory balances are stated at the lower of cost or net realizable value. Laboratory supplies used in the research and development process are expensed as consumed. Inventory is reviewed periodically for product expiration and obsolescence and is adjusted accordingly. The value of the inventory that is not expected to be sold within twelve months of the current reporting period is classified as non-current inventory on the condensed consolidated balance sheets. Accounts Receivable Trade accounts receivable are recorded at the net invoice value and are not interest bearing. Accounts receivable primarily consist of trade accounts receivable from the sales of LCT’s products, timing of cash receipts by the Company related to LSC credit card sales to customers, as well as LSC trade receivable amounts related to spa and distributor sales. The Company considers receivables past due based on the contractual payment terms. The Company reviews its exposure to accounts receivable and reserves specific amounts if collectability is no longer reasonably assured. As of September 30, 2019 and December 31, 2018, the Company had an allowance for doubtful accounts totaling $12,000. Advances On June 18, 2008, the Company entered into an agreement with BioTime, Inc. (“BioTime”), where BioTime paid an advance of $250,000 to LCT to produce, make, and distribute Joint Products. The $250,000 advance will be paid down with the first $250,000 of net revenues that otherwise would be allocated to LCT under the agreement. As of September 30, 2019, no revenues were realized from this agreement. Property and Equipment Property and equipment are stated at cost. The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. The costs of major remodeling and leasehold improvements are capitalized and amortized over the shorter of the remaining term of the lease or the estimated life of the asset. Intangible Assets Intangible assets consist of acquired patent licenses and capitalized legal fees related to the acquisition, filing, maintenance, and defense of patents and trademarks. Patent or patent license amortization only begins once a patent license is acquired or a patent is issued by the appropriate authoritative bodies. In the period in which a patent application is rejected or efforts to pursue the patent are abandoned, all the related accumulated costs are expensed. Patents and other intangible assets are amortized on a straight-line basis over the shorter of the lives of the underlying patents or the useful life of the license. All amortization expense related to intangible assets is included in general and administrative expense. Long-Lived Asset Impairment The Company reviews long-lived assets for impairment when events or changes in business conditions indicate that their carrying value may not be recovered, and at least annually. The Company considers assets to be impaired and writes them down to fair value if expected associated undiscounted cash flows are less than the carrying amounts. Fair value is the present value of the associated cash flows. The Company recognized $145,000 and $157,000 of impairment losses on its intangible assets during the three months ended September 30, 2019 and 2018. The Company recognized $145,000 of impairment losses on its intangible assets during the nine months ended September 30, 2019 and $361,000 of impairment losses on its intangible assets during the nine months ended September 30, 2018 due to abandonment of efforts to pursue certain patents or patented technologies. Revenue Recognition Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. This principle is applied using the following five-step process: 1. Identify the contract with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) each performance obligation is satisfied The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table presents the Company's revenue disaggregated by segment, product and geography, based on management's assessment of available data (in thousands): Biomedical Market: Three Months Ended September 30, 2019 Three Month Ended September 30, 2018 U.S. OUS* Total Revenues % of Total Revenues U.S. OUS* Total Revenues % of Total Revenues Biomedical products Cells $ 179 $ 102 $ 281 18 % $ 326 $ 84 $ 410 15 % Media 1,262 111 1,373 82 % 2,337 83 2,420 85 % Other 16 — 16 0 % 5 — 5 0 % Total $ 1,457 $ 213 $ 1,670 100 % $ 2,668 $ 167 $ 2,835 100 % Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 U.S. OUS* Total Revenues % of Total Revenues U.S. OUS* Total Revenues % of Total Revenues Biomedical products Cells $ 635 $ 288 $ 923 18 % $ 873 $ 288 $ 1,161 15 % Media 4,020 348 4,368 82 % 6,055 387 6,442 85 % Other 19 — 19 0 % 18 — 18 0 % Total $ 4,674 $ 636 $ 5,310 100 % $ 6,946 $ 675 $ 7,621 100 % *Outside the United States Cosmetic Market: Three Months Ended September 30, 2019 Three Month Ended September 30, 2018 Total Revenues % of Total Revenues Total Revenues % of Total Revenues Cosmetic sales channels Ecommerce $ 230 54 % $ 200 56 % Professional 196 46 % 160 44 % Total $ 426 100 % $ 360 100 % Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Total Revenues % of Total Revenues Total Revenues % of Total Revenues Cosmetic sales channels Ecommerce $ 670 51 % $ 771 62 % Professional 655 49 % 474 38 % Total $ 1,325 100 % $ 1,245 100 % The Company's revenue consists primarily of sales of products from its two revenue-generating operating segments, the biomedical products and anti-aging cosmetics products business segments. The cosmetic market segment markets and sells a line of luxury skincare products sold through two sales channels: ecommerce and professional. The ecommerce channel sells direct to customers through online orders, while the professional sales are to spas, salons and other skincare providers. The biomedical market segment markets and sells primary human cell research products with two product categories, cells and media, sold both within and outside the United States. Contract terms for unit price, quantity, shipping and payment are governed by sales agreements, invoices or online order forms which the Company considers to be a customer's contract in all cases. The unit price is considered the observable stand-alone selling price for the arrangements. Any promotional or volume sales discounts are applied evenly to the units sold for purposes of calculating standalone selling price. The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. Product sales generally consist of a single performance obligation that the Company satisfies at a point in time. For LSC products, ecommerce sales are primarily paid through credit card charges, while professional sales are invoiced. The professional sales and biomedical products' standard payment terms for its customers are generally 30 days after the Company satisfies the performance obligations. For anti-aging cosmetic products, the Company honors a 30-day return policy, but historical returns have been minimal and as such, no estimated allowance for sales returns was recorded as of September 30, 2019 and December 31, 2018. The Company elects to account for shipping and handling as activities to fulfill the promise to transfer the goods. As a result, no consideration is allocated to shipping and handling. Rather, the Company accrues the cost of shipping and handling upon shipment of the product, and all contract revenue is recognized at the same time. Variable Consideration The Company records revenue from customers in an amount that reflects the transaction price it expects to be entitled to after transferring control of those goods or services. From time to time, the Company offers sales promotions on its skincare products such as discounts and free product offers. Variable consideration is estimated at contract inception only to the extent that it is probable that a significant reversal of revenue will not occur, and updated at the end of each reporting period as additional information becomes available. Contract Balances The Company records a receivable when it has an unconditional right to receive consideration after the performance obligations are satisfied. As of September 30, 2019 and December 31, 2018, accounts receivable totaled $1,080,000 and $651,000, respectively. For the nine months ended September 30, 2019 and 2018, the Company did not incur material impairment losses with respect to its receivables. Practical Expedients The Company has elected the practical expedient not to determine whether contacts with customers contain significant financing components. The Company pays commissions on certain sales for its biomedical and cosmetic market(s) once the customer payment has been received, which are accrued at the time of the sale. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. In addition, the Company has elected to exclude sales taxes in consideration of the transaction price. Allowance for Sales Returns The Company’s cosmetic products have a 30-day product return guarantee and based on historical rate of returns, the Company determined that there is a low probability that returns will occur. The returns that have historically occurred have not been significant and have been recognized as they occur as a reduction of revenue that is recognized as performance obligations are met. As of September 30, 2019 and December 31, 2018, the Company recorded no allowance for sales returns. Cost of Sales Cost of sales consists primarily of salaries and benefits associated with employee efforts expended directly on the production of the Company’s products and include related direct materials, general laboratory supplies and allocation of overhead. Certain of the agreements under which the Company has licensed technology will require the payment of royalties based on the sale of its future products. Such royalties will be recorded as a component of cost of sales. Additionally, the amortization of license fees or milestone payments related to developed technologies used in the Company’s products will be classified as a component of cost of sales to the extent such payments become due in the future. Research and Development Costs Research and development costs, which are expensed as incurred, are primarily comprised of costs and expenses for salaries and benefits associated with research and development personnel, overhead and occupancy, contract services, and amortization of license costs for technology used in research and development with alternative future uses. Stock-Based Compensation The Company recognizes stock-based compensation expense associated with stock options and other stock-based awards in accordance with the authoritative guidance for stock-based compensation. The cost of a stock-based award is measured at the grant date based on the estimated fair value of the award, and is recognized as expense on a straight-line basis, net of estimated forfeitures over the requisite service period of the award. The fair value of stock options is estimated using the Black-Scholes option valuation model, which requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected life of the option. The fair value of restricted stock awards is based on the market value of the Company’s common stock on the date of grant. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Assets and liabilities that are measured at fair value are reported using a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The table below sets forth a summary of the Company’s liabilities which are measured at fair value on a recurring basis as of September 30, 2019 (in thousands): Total Level 1 Level 2 Level 3 Warrant Liabilities Balance as of September 30, 2019 $ — $ — $ — $ — Balance as of December 31, 2018 1,745 — — 1,745 The following table displays the rollforward activity of liabilities with inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity) (in thousands): Warrant Liability Ending balance at December 31, 2018 $ 1,745 Adjustments to estimated fair value (1,745 ) Ending balance at September 30, 2019 $ — Warrant Liability The Company is required to recognize warrant agreements as a liability since they did not meet the specific conditions for equity classification and therefore need to be recognized at its fair value. The fair value of the warrant liability is calculated using the Monte-Carlo simulation model, which requires the use of certain estimates. The fair value of these warrants is re-measured at each financial reporting period with any changes in fair value being recognized as a component of other income (expense) in the accompanying condensed consolidated statements of operations. Nine Months Ended September 30, 2019 2018 Significant assumptions: Risk-free interest rate 1.70% - 2.09% 2.70% - 2.84% Volatility 73.4% 88.5% Term to expiration 0.54 - 1.46 years 1.54 - 2.46 years Subsequent financing 100% 90% Income Taxes The Company accounts for income taxes in accordance with applicable authoritative guidance, which requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards. Use of Estimates The preparation of consolidated 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 amounts reported in the unaudited condensed consolidated financial statements. Significant estimates include patent life (remaining legal life versus remaining useful life), inventory carrying values, allowance for excess and obsolete inventories, allowance for sales returns and doubtful accounts, and transactions using the Black-Scholes option pricing model, e.g., stock options, as well as the Monte-Carlo valuation method for warrants. Actual results could differ from those estimates. Fair Value of Financial Instruments The Company believes that the carrying value of its cash, receivables, accounts payable, accrued liabilities and related party note payable as of September 30, 2019 and December 31, 2018 approximate their fair values because of the short-term nature of those instruments. The fair value of warrants was determined at each issuance and quarterly reporting date as necessary using the Monte-Carlo valuation method. Income (Loss) Per Common Share The computation of net loss per common share is based on the weighted average number of shares outstanding during each period. The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the period plus the common stock equivalents, which would arise from conversion of convertible preferred stock and exercise of stock options and warrants outstanding using the treasury stock method and the average market price per share during the period. For the periods below, these stock options, warrants, and convertible preferred stock were not included in the diluted loss per share calculation because the effect would have been anti-dilutive. Nine Months Ended September 30, 2019 2018 Options outstanding 5,427,557 4,492,689 Convertible preferred stock 6,132,278 6,277,626 Warrants outstanding 3,951,052 3,951,052 Comprehensive Income Comprehensive income or loss includes all changes in stockholders’ equity except those resulting from investments by owners and distributions to owners. The Company did not have any items of comprehensive income or loss other than net loss from operations for the nine months ended September 30, 2019 and 2018. Recently Issued Accounting Pronouncements Accounting Pronouncements Adopted In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting.” The adoption of ASU 2018-07 on January 1, 2019 did not result in a material impact on the Company’s balance sheet or statement of operations I n July 2017, the FASB issued ASU No. 2017-11, "Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivatives and Hedging (Topic 815)" ("ASU 2017-11") effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2017-11 changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments require entities that present earnings per share ("EPS") in accordance with Topic 260 to recognize the effect of the down round feature when triggered with the effect treated as a dividend and as a reduction of income available to common shareholders in basic EPS. The adoption of ASU 2017-11 on January 1, 2019 did not result in a material impact on the Company’s balance sheet or statement of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize “right-of-use” assets and a lease liability for all leases with lease terms of more than 12 months. The Company elected the exception from applying the new guidance for any short-term leases or leases with terms less than or equal to 12 months. Topic 842 requires additional quantitative and qualitative financial statement footnote disclosures about the leases, significant judgments made in accounting for those leases and amounts recognized in the financial statements about those leases. In 2018 and 2019, the FASB has issued and incorporated several additional ASUs to provide clarifying guidance associated with the application of certain principles within Topic 842. The effective date will be the first quarter of fiscal year 2019. The Company elected the “package of practical expedients,” which allowed the Company to not reassess under the new guidance, the Company’s prior conclusions about lease identification, classification, and treatment of initial direct costs as well as electing the modified retrospective approach effective January 1, 2019. At adoption, total right-of-use assets and operating lease liabilities were approximately $1,180,000 and $1,389,000 respectively. All operating lease expense is recognized on a straight-line basis over the lease term. Accounting Pronouncements Being Evaluated In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820), “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments— Credit Losses (Topic 326). The ASU introduced a new credit loss methodology, the Current Expected Credit Losses (CECL) methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity debt securities, trade receivables and other receivables measured at amortized cost at the time the financial asset is originated or acquired. The Company is currently evaluating the impact of the adoption of this ASU, which will be effective for the Company as of January 1, 2020. |
Correction of Immaterial Missta
Correction of Immaterial Misstatements in the Financial Statements for the Year Ended December 31, 2018 | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Correction of Immaterial Misstatements in the Financial Statements for the Year Ended December 31, 2018 | 2. Correction of Immaterial Misstatements in the Financial Statements for the Year Ended December 31, 2018 During the quarter ended June 30, 2019, the Company determined that the Series D Preferred Stock has a contingent redemption feature. As this feature may trigger the redemption of the convertible preferred stock is not solely within the Company’s control, the convertible preferred stock should be classified in temporary equity (outside of permanent equity) on the Company’s consolidated balance sheet as of December 31, 2018. The March 31, 2019 consolidated balance sheet has been corrected by classifying the Series D redeemable convertible preferred stock within temporary equity from additional paid-in capital in the amount of $4,300,000. The Company also determined that the beneficial conversion feature was previously incorrectly recorded in accumulated deficit instead of additional paid-in capital in the amount of $4,537,000. Based on a quantitative and qualitative analysis of the errors as required by authoritative guidance, management concluded the errors were not material to any of the previously issued financial statements from 2009 through 2018 and corrected the error prospectively. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | 3. Inventory The components of inventories are as follows (in thousands): September 30, December 31, 2019 2018 Raw materials $ 818 $ 656 Work in process 467 590 Finished goods 1,174 1,276 Total 2,459 2,522 Less: allowance for inventory excess and obsolescence (305 ) (216 ) Total current and non-current inventory, net $ 2,154 $ 2,306 Inventory, net $ 1,409 $ 1,501 Non-current inventory 745 805 Total current and non-current inventory, net $ 2,154 $ 2,306 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consist of the following (in thousands): September 30, December 31, 2019 2018 Machinery and equipment $ 1,643 $ 1,614 Computer equipment and software 257 251 Office equipment 230 215 Leasehold improvements 1,276 996 Construction in progress 28 45 3,434 3,121 Less: accumulated depreciation and amortization (2,743 ) (2,652 ) Property and equipment, net $ 691 $ 469 Depreciation expense for the three months ended September 30, 2019 and 2018 was $40,000 and $45,000 respectively. Depreciation expense for the nine months ended September 30, 2019 and 2018 was $115,000 and $130,000, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets Intangible Assets consists of the following (in thousands): September 30, 2019 December 31, 2018 Patents and Trademarks $ 3,706 $ 3,632 Less: accumulated amortization (1,015 ) (958 ) Intangible assets, net $ 2,691 $ 2,674 Amortization expense for the three months ended September 30, 2019 and 2018 was $26,000 and $30,000, respectively. Amortization expense for the nine months ended September 30, 2019 and 2018 was $88,000 and $85,000, respectively. Impairment charges for the three and nine months ended September 30, 2019 were $145,000. Impairment charges for three and nine months ending September 30, 2018 were $157,000 and $361,000 respectively. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Capital Stock | 6. Capital Stock As of September 30, 2019, the Company is authorized to issue 120,000,000 shares of common stock, $0.001 par value per share, and 20,000,000 shares of preferred stock, $0.001 par value per share. Capital Transactions On January 21, 2019, the Company issued 599,222 shares of common stock upon conversion of a portion of the Company’s outstanding indebtedness with a principal amount of $1,000,000 and accrued and unpaid interest on the principal of $49,000 (See Note 7 for details on the conversion). In accordance with the Series G Certificate of Designation, the issuance of Common Shares at the conversion price of $1.75 per share triggered further adjustment in the conversion price and conversion ratio of the Series G Preferred Stock from $9.92 per share and 0.1008 shares to $9.70 per share and 0.1031 shares, respectively. The deemed dividend as a result of the down-round adjustment was trivial. Reserved Shares At September 30, 2019, the Company had shares of common stock reserved for future issuance as follows: Options outstanding 5,427,557 Shares available for future grant under the 2010 Equity Participation Plan 4,020,295 Convertible preferred stock 6,132,278 Warrants 3,951,052 Total 19,531,182 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions During the first quarter of 2011, the Company executed an operating lease for its corporate offices with S Real Estate Holdings LLC. S Real Estate Holdings LLC is owned by Dr. Russell Kern, the Company’s Executive Vice President and Chief Scientific Officer and a director and was previously owned by Dr. Andrey Semechkin, the Company’s Chief Executive Officer and Co-Chairman of the Board of Directors. The lease agreement was negotiated at arm’s length and was reviewed by the Company’s outside legal counsel. The terms of the lease were reviewed by a committee of independent directors, and the Company believes that, in total, those terms are at least as favorable to the Company as could be obtained for comparable facilities from an unaffiliated party. In March 2017 the Company signed an amendment to the lease agreement to extend the term of the lease until 2020 and include annual adjustments to the monthly lease payments. For the nine months ended September 30, 2019 and 2018, the Company recorded $120,000 in rent expense that was related to the facility lease arrangement with related parties. Between March 6, 2018 and August 8, 2018, to obtain funding for working capital purposes, the Company borrowed a total of $2,000,000 from Dr. Andrey Semechkin and issued an unsecured non-convertible promissory note in the principal amount of $2,000,000 (the “Note”) to Dr. Semechkin (the “Noteholder”). The outstanding principal amount under the Note accrued interest at a rate of four percent (4%) per annum. The Note was due and payable November 1, 2018 and on November 12, 2018, to satisfy the indebtedness incurred on the Note, an amendment to the Note was entered into extending the due date to January 15, 2019. On January 21, 2019, the Company entered into a Note Conversion Agreement with Dr. Andrey Semechkin, the Company’s Co-Chairman and Chief Executive Officer (the “Conversion Agreement”). The Conversion Agreement provides for the conversion of a total of $1,049,000 (representing $1,000,000 of principal and $49,000 of accrued interest, representing all accrued interest on the amount owed to Dr. Semechkin through January 21, 2019) under the promissory note issued to Dr. Semechkin on August 8, 2018 into a total of 599,222 shares of the Company’s common stock, representing a conversion price of $1.75 per share, which was greater than the fair value of common stock on the date of conversion at a price of $1.60 per share. Dr. Semechkin took less than fair value to avoid further dilution by triggering down-round adjustments to outstanding warrants and convertible preferred stock. Due to Dr. Semechkin’s role in the Company and controlling interest in the Company, no gain was recorded by the Company upon conversion and the excess was recorded within additional paid-in capital due to the absence of retained earnings. Under the Conversion Agreement, the remaining $1,000,000 owed to Dr. Semechkin under the Note has been reflected in a new unsecured, non-convertible promissory note in the principal amount of $1,000,000 (the “New Note”). The outstanding principal amount under the New Note accrues interest at a rate of 4.5% per annum. The New Note is due and payable on January 15, 2020, but may be pre-paid by the Company without penalty at any time. On April 17, 2019 to obtain additional funding for working capital purposes, the Company issued an unsecured, non-convertible promissory note (the “New Promissory Note”) in the amount of $1,800,000 to Dr. Andrey Semechkin, the Company’s Chief Executive Officer and Co-Chairman of the Board of Directors. Dr. Andrey Semechkin surrendered an existing promissory note from the Company for $1,000,000 and provided an additional $800,000 of funds to the Company. The outstanding principal amount accrues interest at a rate of 4.5% per annum and is due and payable, on January 15, 2020 but may be pre-paid by the Company without penalty at any time. |
Stock Options and Warrants
Stock Options and Warrants | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options and Warrants | 8. Stock Options and Warrants Stock Options The Company adopted the 2006 Equity Participation Plan (as amended the “2006 Plan”), which provides for the grant of stock options, restricted stock and other equity-based awards. Awards for up to 100,000 shares may be granted to employees, directors and consultants under this Plan. The options granted under the 2006 Plan may be either qualified or non-qualified options. Options may be granted with different vesting terms and expire no later than 10 years from the date of grant. The 2006 Plan expired on November 16, 2016. Options and other equity based awards granted prior to the expiration of the 2006 Plan will continue in effect until the option or award is exercised or terminates pursuant to its terms. No new awards may be granted under the 2006 Plan following its expiration. In April 2010, the Company adopted the 2010 Equity Participation Plan (as amended the “2010 Plan”), which provides for the grant of stock options, restricted stock and other equity-based awards. Awards for up to 9,700,000 shares may be granted to employees, directors and consultants under the 2010 Plan. The options granted under the 2010 Plan may be either qualified or non-qualified options. Options may be granted with different vesting terms and expire no later than 10 years from the date of grant. In November and December of 2009, the Company issued non-qualified stock options to purchase shares of common stock outside the 2006 and 2010 option plans to certain employees and consultants. These options vest over 50 months and expire no later than 10 years from the date of grant. As of September 30, 2019 and 2018, 12,634 and 50,730, options remain outstanding. Total stock-based compensation expense for the three and nine months ended September 30, 2019 and 2018 was comprised of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of sales $ 29 $ 22 $ 83 $ 37 Research and development 115 176 426 451 Selling and marketing 31 20 88 36 General and administrative 337 283 992 641 $ 512 $ 501 $ 1,589 $ 1,165 Unrecognized compensation expense related to stock options as of September 30, 2019 was $2,365,000, which is expected to be recognized over a weighted average period of approximately 1.65 years. In accordance with applicable authoritative guidance, the Company is required to establish assumptions and estimates of the fair value of stock options granted, as well as use a valuation model to calculate the fair value of stock-based awards. The Company uses the Black-Scholes option-pricing model to determine the fair-value of stock-based awards. All options are amortized over the requisite service periods. The fair value of options granted is estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions for the nine months ended September 30, 2019 and 2018: Nine Months Ended September 30, 2019 2018 Significant assumptions (weighted average): Risk-free interest rate at grant date 2.44 % 2.72 % Expected stock price volatility 84.95 % 92.68 % Expected dividend payout 0 % 0 % Expected option life based on management's estimate 5.71 years 5.70 years Transactions involving stock options issued to employees, directors and consultants under the 2006 Plan, the 2010 Plan and outside the plans are summarized below. Options issued have a maximum life of 10 years. The following tables summarize the changes in options outstanding and the related exercise prices for the Company’s common stock options issued: Number of Weighted Options Weighted Average Aggregate Under Average Remaining Intrinsic 2006 Plan and Price Per Contractual Value 2010 Plan Share Term (in thousands) Outstanding at December 31, 2018 4,354,708 $ 3.95 Granted 1,345,964 $ 1.44 Exercised — $ — Canceled or expired (285,749 ) $ 2.63 Outstanding at September 30, 2019 5,414,923 $ 3.39 8.25 years $ — Vested and expected to vest at September 30, 2019 5,176,891 $ 3.48 8.21 years $ — Exercisable at September 30, 2019 3,042,547 $ 4.83 7.74 years $ — Weighted Number of Weighted Average Aggregate Options Issued Average Exercise Remaining Intrinsic Outside Price Per Contractual Value the Plan Share Term (in thousands) Outstanding, vested and exercisable at December 31, 2018 12,634 $ 90.23 Granted — $ — Exercised — $ — Canceled or expired — $ — Outstanding, vested and exercisable at September 30, 2019 12,634 $ — 0.16 years $ — Restricted Stock Awards Restricted stock awards are grants that entitle the holder to acquire shares of common stock at zero or a fixed price, which is typically nominal. The Company accounts for the restricted stock awards as issued and outstanding common stock, even though the shares covered by a restricted stock award cannot be sold, pledged, or otherwise disposed of until the award vests and any unvested shares may be reacquired by the Company for the original purchase price following the awardee’s termination of service. No restricted stock was awarded for the nine months ended September 30, 2019. For the nine months ended September 30, 2018, there were 9,855 shares of restricted stock awarded and fully vested at a weighted average grant date fair value of $1.55 per share. The fair value of the restricted stock awards is based on the market value of the common stock on the date of grant. The total grant-date fair value of restricted stock awards vested during the nine months ended September 30, 2019 and 2018, was none and approximately $15,000 respectively. The Company recognized none and approximately $15,000 of stock-based compensation expense related to the restricted stock awards for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, there was no unrecognized compensation costs related to unvested awards. Warrants Issued with Common Stock Share data related to warrant transactions through September 30, 2019 were as follows: Common Stock October 2014 Financing Common Stock March 2016 Financing Total Warrants Exercise Price Outstanding, December 31, 2018 2,483 3,948,569 3,951,052 $ 1.75 Forfeited/Cancelled — — — Outstanding, September 30, 2019 2,483 3,948,569 3,951,052 $ 1.75 Expiration Date April 14, 2020 March 15, 2021 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Leases The Company has three operating leases for real estate in California and Maryland: • Carlsbad, California – corporate offices with a term date of February 2020 and leased from a related party (see also Note 7), • Oceanside, California – primary research facility and laboratory space with a term date of December 2021 with the Company’s option to terminate the lease on January 1, 2020 upon a six-month advanced notice, • Frederick, Maryland – mixed laboratory and administrative space with a term date of November 2025. These operating leases are included in "right-of-use assets" on the Company's September 30, 2019 balance sheet and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments is included in “operating lease liabilities, current” and “operating lease liabilities, net of current portion” on the Company's September 30, 2019 balance sheet. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. As of September 30, 2019, total right-of-use assets and operating lease liabilities were approximately $784,000 and $1,165,000, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. As most of the Company’s operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would expect to pay to borrow on a collateralized and fully amortizing basis over a similar term an amount equal to the lease payments in a similar economic environment. Information related to the Company's right-of-use assets and related lease liabilities were as follows (in thousands): Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease costs $ 117 $ 370 Cash paid for operating lease liabilities 124 360 Right-of-use assets obtained in exchange for new operating lease obligations — 1,389 Weighted-average remaining lease term (years) 4.99 Weighted average discount rate 17.55 % Maturities of lease liabilities as of September 30, 2019 were as follows : 2019 (remaining months) $ 125 2020 368 2021 347 2022 220 2023 226 Thereafter 473 1,759 Less: present value adjustments (594 ) Total lease liabilities $ 1,165 Current operating lease liabilities $ 236 Non-current operating lease liabilities 929 Total operating lease liabilities $ 1,165 Future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018, are as follows (in thousands): Amount 2019 $ 491 2020 368 2021 347 2022 220 2023 227 Thereafter 454 Total $ 2,107 Licensed Patents The Company has a minimum annual license fee of $75,000 payable in two installments per year to Astellas Pharma pursuant to the amended UMass IP license agreement and is noncancelable. Customer Concentration During the nine months ended September 30, 2019 for the biomedical market segment, two customers accounted for 39% and 13%, respectively, of consolidated revenues. During the nine months ended September 30, 2018 for the biomedical market segment, two customers accounted for 33% and 27%, respectively, of consolidated revenues. No other single customer accounted for more than 10% of revenues for any period presented. Vendor Concentration During the nine months ended September 30, 2019, no single vendor accounted for more than 10% of consolidated purchases, while during the same periods in 2018 one vendor accounted for approximately 25% of consolidated purchases. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments | 10. Segments The Company’s chief operating decision-maker reviews financial information presented on a consolidated basis, accompanied by disaggregated information by each reportable company’s statement of operations. The Company operates the business on the basis of three reporting segments, the parent company and two business units: ISCO – therapeutic market, LSC – anti-aging cosmetic market, and LCT – biomedical market. Revenues, Expenses and Operating Income (loss) The Company does not measure the performance of its segments on any asset-based metrics. Therefore, segment information is presented only for operating income (loss). Revenues, expenses and operating income (loss) by market segment were as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenues: Anti-aging cosmetic market $ 426 $ 360 $ 1,325 $ 1,245 Biomedical market 1,670 2,835 5,310 7,621 Total revenues 2,096 3,195 6,635 8,866 Operating expenses: Therapeutic market 953 1,431 3,753 4,476 Anti-aging cosmetic market 636 589 1,956 1,931 Biomedical market 1,320 1,838 4,170 4,673 Total operating expenses 2,909 3,858 9,879 11,080 Operating income (loss): Therapeutic market (953 ) (1,431 ) (3,753 ) (4,476 ) Anti-aging cosmetic market (210 ) (229 ) (631 ) (686 ) Biomedical market 350 997 1,140 2,948 Total operating loss $ (813 ) $ (663 ) $ (3,244 ) $ (2,214 ) |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business | Organization and Business International Stem Cell Corporation (the “Company”) was organized in Delaware in June 2005 and is publicly traded in OTC QX. The Company is a research and development company, for the therapeutic market, which has focused on advancing potential clinical applications of human parthenogenetic stem cells (“hpSCs”) for the treatment of various diseases of the central nervous system and liver diseases. The Company has the following wholly-owned subsidiaries: • Lifeline Cell Technology, LLC ("LCT”) – for the biomedical market, develops, manufactures and commercializes primary human cell research products including over 208 human cell culture products, including frozen human “primary” cells and the reagents (called “media”) needed to grow, maintain and differentiate the cells; • Lifeline Skin Care, Inc. ("LSC”) – for the anti-aging cosmetic market, develops, manufactures and markets a category of anti-aging cosmetic skin care products based on the Company’s proprietary parthenogenetic stem cell technology and small molecule technology; • Cyto Therapeutics Pty. Ltd. ("Cyto Therapeutics”) – performs research and development for the Therapeutic Market and is currently conducting clinical trials in Australia for the use of ISC-hpNSC® in the treatment of Parkinson’s disease. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and the results of its operations and cash flows for the periods presented. The unaudited condensed balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by GAAP for annual financial statements. The operating results presented in these unaudited interim condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2018 included in the Company’s annual report on Form 10-K filed with the SEC on April 19, 2019. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of International Stem Cell Corporation and its subsidiaries after intercompany balances and transactions have been eliminated. |
Liquidity and Going Concern | Liquidity and Going Concern The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern, which assumes that the Company will realize its assets and satisfy its liabilities in the normal course of business. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of the uncertainty concerning the Company’s ability to continue as a going concern. The Company has an accumulated deficit of approximately $103,700,000 as of September 30, 2019 and has incurred net losses and has had negative operating cash flows since inception. The Company has had no revenue from its principal operations in therapeutic and clinical product development through research and development efforts. Based on cash on-hand at September 30, 2019 of $463,000 and anticipated cash burn, the Company estimates it has existing resources to fund the Company’s principal operations into the first quarter of 2020. There can be no assurance that the Company will be successful in maintaining normal operating cash flow or obtaining additional funding. The Company continues to evaluate various financing sources and options to raise working capital to help fund current research and development programs and operations. The Company will need to obtain significant additional capital from sources including the exercise of outstanding warrants, equity and/or debt financings, license arrangements, grants and/or collaborative research arrangements to sustain its operations and develop products. The timing and degree of any future capital requirements will depend on many factors, including: • the accuracy of the assumptions underlying the estimates for capital needs in 2019 and beyond; • the extent that revenues from sales of LSC and LCT products cover the related costs and provide capital; • scientific progress in research and development programs; • the magnitude and scope of the Company’s research and development programs and its ability to establish, enforce and maintain strategic arrangements for research, development, clinical testing, manufacturing and marketing; • the progress with preclinical development and clinical trials; • the time and costs involved in obtaining regulatory approvals; • the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing patent claims; and • the number and type of product candidates that the Company decides to pursue. Additional financing through strategic collaborations, public or private equity financings or other financing sources may not be available on acceptable terms, or at all. Additional equity financing could result in significant dilution to stockholders. Additional debt financing may be expensive and require the Company to pledge all or a substantial portion of its assets. Further, if additional funds are obtained through arrangements with collaborative partners, these arrangements may require the Company to relinquish rights to some of its technologies, product candidates or products that the Company would otherwise seek to develop and commercialize on its own. If sufficient capital is not available, the Company may be required to delay, reduce the scope of or eliminate one or more of its product initiatives. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. There were no cash equivalents as of September 30, 2019 and December 31, 2018. |
Inventory | Inventory Inventory is accounted for using the average cost and first-in, first-out (FIFO) methods for LCT cell culture media and reagents, average cost and specific identification methods for LSC products, and specific identification method for LCT products. Inventory balances are stated at the lower of cost or net realizable value. Laboratory supplies used in the research and development process are expensed as consumed. Inventory is reviewed periodically for product expiration and obsolescence and is adjusted accordingly. The value of the inventory that is not expected to be sold within twelve months of the current reporting period is classified as non-current inventory on the condensed consolidated balance sheets. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are recorded at the net invoice value and are not interest bearing. Accounts receivable primarily consist of trade accounts receivable from the sales of LCT’s products, timing of cash receipts by the Company related to LSC credit card sales to customers, as well as LSC trade receivable amounts related to spa and distributor sales. The Company considers receivables past due based on the contractual payment terms. The Company reviews its exposure to accounts receivable and reserves specific amounts if collectability is no longer reasonably assured. As of September 30, 2019 and December 31, 2018, the Company had an allowance for doubtful accounts totaling $12,000. |
Advances | Advances On June 18, 2008, the Company entered into an agreement with BioTime, Inc. (“BioTime”), where BioTime paid an advance of $250,000 to LCT to produce, make, and distribute Joint Products. The $250,000 advance will be paid down with the first $250,000 of net revenues that otherwise would be allocated to LCT under the agreement. As of September 30, 2019, no revenues were realized from this agreement. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. The costs of major remodeling and leasehold improvements are capitalized and amortized over the shorter of the remaining term of the lease or the estimated life of the asset. |
Intangible Assets | Intangible Assets Intangible assets consist of acquired patent licenses and capitalized legal fees related to the acquisition, filing, maintenance, and defense of patents and trademarks. Patent or patent license amortization only begins once a patent license is acquired or a patent is issued by the appropriate authoritative bodies. In the period in which a patent application is rejected or efforts to pursue the patent are abandoned, all the related accumulated costs are expensed. Patents and other intangible assets are amortized on a straight-line basis over the shorter of the lives of the underlying patents or the useful life of the license. All amortization expense related to intangible assets is included in general and administrative expense. |
Long-Lived Asset Impairment | Long-Lived Asset Impairment The Company reviews long-lived assets for impairment when events or changes in business conditions indicate that their carrying value may not be recovered, and at least annually. The Company considers assets to be impaired and writes them down to fair value if expected associated undiscounted cash flows are less than the carrying amounts. Fair value is the present value of the associated cash flows. The Company recognized $145,000 and $157,000 of impairment losses on its intangible assets during the three months ended September 30, 2019 and 2018. The Company recognized $145,000 of impairment losses on its intangible assets during the nine months ended September 30, 2019 and $361,000 of impairment losses on its intangible assets during the nine months ended September 30, 2018 due to abandonment of efforts to pursue certain patents or patented technologies. |
Revenue Recognition | Revenue Recognition Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. This principle is applied using the following five-step process: 1. Identify the contract with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) each performance obligation is satisfied The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table presents the Company's revenue disaggregated by segment, product and geography, based on management's assessment of available data (in thousands): Biomedical Market: Three Months Ended September 30, 2019 Three Month Ended September 30, 2018 U.S. OUS* Total Revenues % of Total Revenues U.S. OUS* Total Revenues % of Total Revenues Biomedical products Cells $ 179 $ 102 $ 281 18 % $ 326 $ 84 $ 410 15 % Media 1,262 111 1,373 82 % 2,337 83 2,420 85 % Other 16 — 16 0 % 5 — 5 0 % Total $ 1,457 $ 213 $ 1,670 100 % $ 2,668 $ 167 $ 2,835 100 % Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 U.S. OUS* Total Revenues % of Total Revenues U.S. OUS* Total Revenues % of Total Revenues Biomedical products Cells $ 635 $ 288 $ 923 18 % $ 873 $ 288 $ 1,161 15 % Media 4,020 348 4,368 82 % 6,055 387 6,442 85 % Other 19 — 19 0 % 18 — 18 0 % Total $ 4,674 $ 636 $ 5,310 100 % $ 6,946 $ 675 $ 7,621 100 % *Outside the United States Cosmetic Market: Three Months Ended September 30, 2019 Three Month Ended September 30, 2018 Total Revenues % of Total Revenues Total Revenues % of Total Revenues Cosmetic sales channels Ecommerce $ 230 54 % $ 200 56 % Professional 196 46 % 160 44 % Total $ 426 100 % $ 360 100 % Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Total Revenues % of Total Revenues Total Revenues % of Total Revenues Cosmetic sales channels Ecommerce $ 670 51 % $ 771 62 % Professional 655 49 % 474 38 % Total $ 1,325 100 % $ 1,245 100 % The Company's revenue consists primarily of sales of products from its two revenue-generating operating segments, the biomedical products and anti-aging cosmetics products business segments. The cosmetic market segment markets and sells a line of luxury skincare products sold through two sales channels: ecommerce and professional. The ecommerce channel sells direct to customers through online orders, while the professional sales are to spas, salons and other skincare providers. The biomedical market segment markets and sells primary human cell research products with two product categories, cells and media, sold both within and outside the United States. Contract terms for unit price, quantity, shipping and payment are governed by sales agreements, invoices or online order forms which the Company considers to be a customer's contract in all cases. The unit price is considered the observable stand-alone selling price for the arrangements. Any promotional or volume sales discounts are applied evenly to the units sold for purposes of calculating standalone selling price. The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. Product sales generally consist of a single performance obligation that the Company satisfies at a point in time. For LSC products, ecommerce sales are primarily paid through credit card charges, while professional sales are invoiced. The professional sales and biomedical products' standard payment terms for its customers are generally 30 days after the Company satisfies the performance obligations. For anti-aging cosmetic products, the Company honors a 30-day return policy, but historical returns have been minimal and as such, no estimated allowance for sales returns was recorded as of September 30, 2019 and December 31, 2018. The Company elects to account for shipping and handling as activities to fulfill the promise to transfer the goods. As a result, no consideration is allocated to shipping and handling. Rather, the Company accrues the cost of shipping and handling upon shipment of the product, and all contract revenue is recognized at the same time. Variable Consideration The Company records revenue from customers in an amount that reflects the transaction price it expects to be entitled to after transferring control of those goods or services. From time to time, the Company offers sales promotions on its skincare products such as discounts and free product offers. Variable consideration is estimated at contract inception only to the extent that it is probable that a significant reversal of revenue will not occur, and updated at the end of each reporting period as additional information becomes available. Contract Balances The Company records a receivable when it has an unconditional right to receive consideration after the performance obligations are satisfied. As of September 30, 2019 and December 31, 2018, accounts receivable totaled $1,080,000 and $651,000, respectively. For the nine months ended September 30, 2019 and 2018, the Company did not incur material impairment losses with respect to its receivables. Practical Expedients The Company has elected the practical expedient not to determine whether contacts with customers contain significant financing components. The Company pays commissions on certain sales for its biomedical and cosmetic market(s) once the customer payment has been received, which are accrued at the time of the sale. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. In addition, the Company has elected to exclude sales taxes in consideration of the transaction price. |
Allowance for Sales Returns | Allowance for Sales Returns The Company’s cosmetic products have a 30-day product return guarantee and based on historical rate of returns, the Company determined that there is a low probability that returns will occur. The returns that have historically occurred have not been significant and have been recognized as they occur as a reduction of revenue that is recognized as performance obligations are met. As of September 30, 2019 and December 31, 2018, the Company recorded no allowance for sales returns. |
Cost of Sales | Cost of Sales Cost of sales consists primarily of salaries and benefits associated with employee efforts expended directly on the production of the Company’s products and include related direct materials, general laboratory supplies and allocation of overhead. Certain of the agreements under which the Company has licensed technology will require the payment of royalties based on the sale of its future products. Such royalties will be recorded as a component of cost of sales. Additionally, the amortization of license fees or milestone payments related to developed technologies used in the Company’s products will be classified as a component of cost of sales to the extent such payments become due in the future. |
Research and Development Costs | Research and Development Costs Research and development costs, which are expensed as incurred, are primarily comprised of costs and expenses for salaries and benefits associated with research and development personnel, overhead and occupancy, contract services, and amortization of license costs for technology used in research and development with alternative future uses. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense associated with stock options and other stock-based awards in accordance with the authoritative guidance for stock-based compensation. The cost of a stock-based award is measured at the grant date based on the estimated fair value of the award, and is recognized as expense on a straight-line basis, net of estimated forfeitures over the requisite service period of the award. The fair value of stock options is estimated using the Black-Scholes option valuation model, which requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected life of the option. The fair value of restricted stock awards is based on the market value of the Company’s common stock on the date of grant. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Assets and liabilities that are measured at fair value are reported using a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The table below sets forth a summary of the Company’s liabilities which are measured at fair value on a recurring basis as of September 30, 2019 (in thousands): Total Level 1 Level 2 Level 3 Warrant Liabilities Balance as of September 30, 2019 $ — $ — $ — $ — Balance as of December 31, 2018 1,745 — — 1,745 The following table displays the rollforward activity of liabilities with inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity) (in thousands): Warrant Liability Ending balance at December 31, 2018 $ 1,745 Adjustments to estimated fair value (1,745 ) Ending balance at September 30, 2019 $ — |
Warrant Liability | Warrant Liability The Company is required to recognize warrant agreements as a liability since they did not meet the specific conditions for equity classification and therefore need to be recognized at its fair value. The fair value of the warrant liability is calculated using the Monte-Carlo simulation model, which requires the use of certain estimates. The fair value of these warrants is re-measured at each financial reporting period with any changes in fair value being recognized as a component of other income (expense) in the accompanying condensed consolidated statements of operations. Nine Months Ended September 30, 2019 2018 Significant assumptions: Risk-free interest rate 1.70% - 2.09% 2.70% - 2.84% Volatility 73.4% 88.5% Term to expiration 0.54 - 1.46 years 1.54 - 2.46 years Subsequent financing 100% 90% |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with applicable authoritative guidance, which requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards. |
Use of Estimates | Use of Estimates The preparation of consolidated 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 amounts reported in the unaudited condensed consolidated financial statements. Significant estimates include patent life (remaining legal life versus remaining useful life), inventory carrying values, allowance for excess and obsolete inventories, allowance for sales returns and doubtful accounts, and transactions using the Black-Scholes option pricing model, e.g., stock options, as well as the Monte-Carlo valuation method for warrants. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company believes that the carrying value of its cash, receivables, accounts payable, accrued liabilities and related party note payable as of September 30, 2019 and December 31, 2018 approximate their fair values because of the short-term nature of those instruments. The fair value of warrants was determined at each issuance and quarterly reporting date as necessary using the Monte-Carlo valuation method. |
Income (Loss) Per Common Share | Income (Loss) Per Common Share The computation of net loss per common share is based on the weighted average number of shares outstanding during each period. The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the period plus the common stock equivalents, which would arise from conversion of convertible preferred stock and exercise of stock options and warrants outstanding using the treasury stock method and the average market price per share during the period. For the periods below, these stock options, warrants, and convertible preferred stock were not included in the diluted loss per share calculation because the effect would have been anti-dilutive. Nine Months Ended September 30, 2019 2018 Options outstanding 5,427,557 4,492,689 Convertible preferred stock 6,132,278 6,277,626 Warrants outstanding 3,951,052 3,951,052 |
Comprehensive Income | Comprehensive Income Comprehensive income or loss includes all changes in stockholders’ equity except those resulting from investments by owners and distributions to owners. The Company did not have any items of comprehensive income or loss other than net loss from operations for the nine months ended September 30, 2019 and 2018. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Pronouncements Adopted In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting.” The adoption of ASU 2018-07 on January 1, 2019 did not result in a material impact on the Company’s balance sheet or statement of operations I n July 2017, the FASB issued ASU No. 2017-11, "Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivatives and Hedging (Topic 815)" ("ASU 2017-11") effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2017-11 changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments require entities that present earnings per share ("EPS") in accordance with Topic 260 to recognize the effect of the down round feature when triggered with the effect treated as a dividend and as a reduction of income available to common shareholders in basic EPS. The adoption of ASU 2017-11 on January 1, 2019 did not result in a material impact on the Company’s balance sheet or statement of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize “right-of-use” assets and a lease liability for all leases with lease terms of more than 12 months. The Company elected the exception from applying the new guidance for any short-term leases or leases with terms less than or equal to 12 months. Topic 842 requires additional quantitative and qualitative financial statement footnote disclosures about the leases, significant judgments made in accounting for those leases and amounts recognized in the financial statements about those leases. In 2018 and 2019, the FASB has issued and incorporated several additional ASUs to provide clarifying guidance associated with the application of certain principles within Topic 842. The effective date will be the first quarter of fiscal year 2019. The Company elected the “package of practical expedients,” which allowed the Company to not reassess under the new guidance, the Company’s prior conclusions about lease identification, classification, and treatment of initial direct costs as well as electing the modified retrospective approach effective January 1, 2019. At adoption, total right-of-use assets and operating lease liabilities were approximately $1,180,000 and $1,389,000 respectively. All operating lease expense is recognized on a straight-line basis over the lease term. Accounting Pronouncements Being Evaluated In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820), “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments— Credit Losses (Topic 326). The ASU introduced a new credit loss methodology, the Current Expected Credit Losses (CECL) methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity debt securities, trade receivables and other receivables measured at amortized cost at the time the financial asset is originated or acquired. The Company is currently evaluating the impact of the adoption of this ASU, which will be effective for the Company as of January 1, 2020. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Revenue Disaggregated by Segment, Product and Geography Based on Management's Assessment | The following table presents the Company's revenue disaggregated by segment, product and geography, based on management's assessment of available data (in thousands): Biomedical Market: Three Months Ended September 30, 2019 Three Month Ended September 30, 2018 U.S. OUS* Total Revenues % of Total Revenues U.S. OUS* Total Revenues % of Total Revenues Biomedical products Cells $ 179 $ 102 $ 281 18 % $ 326 $ 84 $ 410 15 % Media 1,262 111 1,373 82 % 2,337 83 2,420 85 % Other 16 — 16 0 % 5 — 5 0 % Total $ 1,457 $ 213 $ 1,670 100 % $ 2,668 $ 167 $ 2,835 100 % Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 U.S. OUS* Total Revenues % of Total Revenues U.S. OUS* Total Revenues % of Total Revenues Biomedical products Cells $ 635 $ 288 $ 923 18 % $ 873 $ 288 $ 1,161 15 % Media 4,020 348 4,368 82 % 6,055 387 6,442 85 % Other 19 — 19 0 % 18 — 18 0 % Total $ 4,674 $ 636 $ 5,310 100 % $ 6,946 $ 675 $ 7,621 100 % *Outside the United States Cosmetic Market: Three Months Ended September 30, 2019 Three Month Ended September 30, 2018 Total Revenues % of Total Revenues Total Revenues % of Total Revenues Cosmetic sales channels Ecommerce $ 230 54 % $ 200 56 % Professional 196 46 % 160 44 % Total $ 426 100 % $ 360 100 % Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Total Revenues % of Total Revenues Total Revenues % of Total Revenues Cosmetic sales channels Ecommerce $ 670 51 % $ 771 62 % Professional 655 49 % 474 38 % Total $ 1,325 100 % $ 1,245 100 % |
Fair Values of Liabilities on a Recurring Basis | The table below sets forth a summary of the Company’s liabilities which are measured at fair value on a recurring basis as of September 30, 2019 (in thousands): Total Level 1 Level 2 Level 3 Warrant Liabilities Balance as of September 30, 2019 $ — $ — $ — $ — Balance as of December 31, 2018 1,745 — — 1,745 |
Fair Value Measurement and Unobservable Rollforward Activity of Liabilities | The following table displays the rollforward activity of liabilities with inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity) (in thousands): Warrant Liability Ending balance at December 31, 2018 $ 1,745 Adjustments to estimated fair value (1,745 ) Ending balance at September 30, 2019 $ — |
Assumptions Used as Inputs for Warrant Liability | The following assumptions were used as inputs to the model: Nine Months Ended September 30, 2019 2018 Significant assumptions: Risk-free interest rate 1.70% - 2.09% 2.70% - 2.84% Volatility 73.4% 88.5% Term to expiration 0.54 - 1.46 years 1.54 - 2.46 years Subsequent financing 100% 90% |
Summary of Antidilutive Securities not Included in Diluted Loss Per Share Calculation | For the periods below, these stock options, warrants, and convertible preferred stock were not included in the diluted loss per share calculation because the effect would have been anti-dilutive. Nine Months Ended September 30, 2019 2018 Options outstanding 5,427,557 4,492,689 Convertible preferred stock 6,132,278 6,277,626 Warrants outstanding 3,951,052 3,951,052 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of the Components of Inventories | The components of inventories are as follows (in thousands): September 30, December 31, 2019 2018 Raw materials $ 818 $ 656 Work in process 467 590 Finished goods 1,174 1,276 Total 2,459 2,522 Less: allowance for inventory excess and obsolescence (305 ) (216 ) Total current and non-current inventory, net $ 2,154 $ 2,306 Inventory, net $ 1,409 $ 1,501 Non-current inventory 745 805 Total current and non-current inventory, net $ 2,154 $ 2,306 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following (in thousands): September 30, December 31, 2019 2018 Machinery and equipment $ 1,643 $ 1,614 Computer equipment and software 257 251 Office equipment 230 215 Leasehold improvements 1,276 996 Construction in progress 28 45 3,434 3,121 Less: accumulated depreciation and amortization (2,743 ) (2,652 ) Property and equipment, net $ 691 $ 469 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible Assets consists of the following (in thousands): September 30, 2019 December 31, 2018 Patents and Trademarks $ 3,706 $ 3,632 Less: accumulated amortization (1,015 ) (958 ) Intangible assets, net $ 2,691 $ 2,674 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Summary of Shares of Common Stock Reserved for Future Issuance | At September 30, 2019, the Company had shares of common stock reserved for future issuance as follows: Options outstanding 5,427,557 Shares available for future grant under the 2010 Equity Participation Plan 4,020,295 Convertible preferred stock 6,132,278 Warrants 3,951,052 Total 19,531,182 |
Stock Options and Warrants (Tab
Stock Options and Warrants (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Total Stock-based Compensation Expense | Total stock-based compensation expense for the three and nine months ended September 30, 2019 and 2018 was comprised of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of sales $ 29 $ 22 $ 83 $ 37 Research and development 115 176 426 451 Selling and marketing 31 20 88 36 General and administrative 337 283 992 641 $ 512 $ 501 $ 1,589 $ 1,165 |
Fair Value of Stock Option Award Weighted Average Assumptions | The fair value of options granted is estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions for the nine months ended September 30, 2019 and 2018: Nine Months Ended September 30, 2019 2018 Significant assumptions (weighted average): Risk-free interest rate at grant date 2.44 % 2.72 % Expected stock price volatility 84.95 % 92.68 % Expected dividend payout 0 % 0 % Expected option life based on management's estimate 5.71 years 5.70 years |
Summary of Changes in Options Outstanding and Related Exercise Prices for Shares of Company's Common Stock Options Issued | The following tables summarize the changes in options outstanding and the related exercise prices for the Company’s common stock options issued: Number of Weighted Options Weighted Average Aggregate Under Average Remaining Intrinsic 2006 Plan and Price Per Contractual Value 2010 Plan Share Term (in thousands) Outstanding at December 31, 2018 4,354,708 $ 3.95 Granted 1,345,964 $ 1.44 Exercised — $ — Canceled or expired (285,749 ) $ 2.63 Outstanding at September 30, 2019 5,414,923 $ 3.39 8.25 years $ — Vested and expected to vest at September 30, 2019 5,176,891 $ 3.48 8.21 years $ — Exercisable at September 30, 2019 3,042,547 $ 4.83 7.74 years $ — Weighted Number of Weighted Average Aggregate Options Issued Average Exercise Remaining Intrinsic Outside Price Per Contractual Value the Plan Share Term (in thousands) Outstanding, vested and exercisable at December 31, 2018 12,634 $ 90.23 Granted — $ — Exercised — $ — Canceled or expired — $ — Outstanding, vested and exercisable at September 30, 2019 12,634 $ — 0.16 years $ — |
Summary of Outstanding Warrants Related to Warrant Transactions | Share data related to warrant transactions through September 30, 2019 were as follows: Common Stock October 2014 Financing Common Stock March 2016 Financing Total Warrants Exercise Price Outstanding, December 31, 2018 2,483 3,948,569 3,951,052 $ 1.75 Forfeited/Cancelled — — — Outstanding, September 30, 2019 2,483 3,948,569 3,951,052 $ 1.75 Expiration Date April 14, 2020 March 15, 2021 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Information Related to Right-of-use Assets and Lease Liabilities | Information related to the Company's right-of-use assets and related lease liabilities were as follows (in thousands): Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating lease costs $ 117 $ 370 Cash paid for operating lease liabilities 124 360 Right-of-use assets obtained in exchange for new operating lease obligations — 1,389 Weighted-average remaining lease term (years) 4.99 Weighted average discount rate 17.55 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2019 were as follows : 2019 (remaining months) $ 125 2020 368 2021 347 2022 220 2023 226 Thereafter 473 1,759 Less: present value adjustments (594 ) Total lease liabilities $ 1,165 Current operating lease liabilities $ 236 Non-current operating lease liabilities 929 Total operating lease liabilities $ 1,165 |
Summary of Future Minimum Lease Payments Required under Operating Leases that Have Initial or Remaining Non-Cancelable Lease Terms in Excess of One Year | Future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018, are as follows (in thousands): Amount 2019 $ 491 2020 368 2021 347 2022 220 2023 227 Thereafter 454 Total $ 2,107 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenues, Expenses and Operating Income (Loss) by Market Segment | Revenues, expenses and operating income (loss) by market segment were as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenues: Anti-aging cosmetic market $ 426 $ 360 $ 1,325 $ 1,245 Biomedical market 1,670 2,835 5,310 7,621 Total revenues 2,096 3,195 6,635 8,866 Operating expenses: Therapeutic market 953 1,431 3,753 4,476 Anti-aging cosmetic market 636 589 1,956 1,931 Biomedical market 1,320 1,838 4,170 4,673 Total operating expenses 2,909 3,858 9,879 11,080 Operating income (loss): Therapeutic market (953 ) (1,431 ) (3,753 ) (4,476 ) Anti-aging cosmetic market (210 ) (229 ) (631 ) (686 ) Biomedical market 350 997 1,140 2,948 Total operating loss $ (813 ) $ (663 ) $ (3,244 ) $ (2,214 ) |
Organization and Significant _4
Organization and Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jun. 18, 2008USD ($) | |
Organization And Significant Accounting Policies [Line Items] | ||||||
Accumulated deficit | $ 103,677,000 | $ 103,677,000 | $ 106,663,000 | |||
Cash on-hand | 463,000 | $ 463,000 | 1,075,000 | |||
Original maturities period, maximum | 3 months | |||||
Cash equivalents | 0 | $ 0 | 0 | |||
Allowance for doubtful accounts receivable | 12,000 | 12,000 | 12,000 | |||
Advances | 250,000 | 250,000 | 250,000 | $ 250,000 | ||
Specified amount of revenue to be utilized for advances | $ 250,000 | |||||
Revenue realized from agreement | 0 | |||||
Impairment losses on intangible assets | 145,000 | $ 157,000 | $ 145,000 | $ 361,000 | ||
Number of revenue-generating operating segments | Segment | 2 | |||||
Description of payment terms | The Company's revenue consists primarily of sales of products from its two revenue-generating operating segments, the biomedical products and anti-aging cosmetics products business segments. The cosmetic market segment markets and sells a line of luxury skincare products sold through two sales channels: ecommerce and professional. The ecommerce channel sells direct to customers through online orders, while the professional sales are to spas, salons and other skincare providers. The biomedical market segment markets and sells primary human cell research products with two product categories, cells and media, sold both within and outside the United States. | |||||
Accounts receivable | 1,080,000 | $ 1,080,000 | 651,000 | |||
Impairment losses with respect to receivables | $ 0 | $ 0 | ||||
Product return guarantee period | 30 days | |||||
Allowance for sales returns | $ 0 | 0 | ||||
Right-of-use assets | 784,000 | 784,000 | ||||
Operating lease, liabilities | 1,165,000 | 1,165,000 | ||||
ASU 2016-02 [Member] | ||||||
Organization And Significant Accounting Policies [Line Items] | ||||||
Right-of-use assets | 1,180,000 | 1,180,000 | ||||
Operating lease, liabilities | 1,389,000 | 1,389,000 | ||||
LSC [Member] | ||||||
Organization And Significant Accounting Policies [Line Items] | ||||||
Allowance for doubtful accounts receivable | $ 0 | $ 0 | $ 0 | |||
Minimum [Member] | ||||||
Organization And Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of property and equipment | 3 years | |||||
Maximum [Member] | ||||||
Organization And Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of property and equipment | 5 years |
Organization and Significant _5
Organization and Significant Accounting Policies - Summary of Revenue Disaggregated by Segment, Product and Geography Based on Management's Assessment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 2,096 | $ 3,195 | $ 6,635 | $ 8,866 |
Biomedical Market [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,670 | $ 2,835 | $ 5,310 | $ 7,621 |
% of Total Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Biomedical Market [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,457 | $ 2,668 | $ 4,674 | $ 6,946 |
Biomedical Market [Member] | OUS [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 213 | 167 | 636 | 675 |
Biomedical Market [Member] | Cells [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 281 | $ 410 | $ 923 | $ 1,161 |
% of Total Revenues | 18.00% | 15.00% | 18.00% | 15.00% |
Biomedical Market [Member] | Cells [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 179 | $ 326 | $ 635 | $ 873 |
Biomedical Market [Member] | Cells [Member] | OUS [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 102 | 84 | 288 | 288 |
Biomedical Market [Member] | Media [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,373 | $ 2,420 | $ 4,368 | $ 6,442 |
% of Total Revenues | 82.00% | 85.00% | 82.00% | 85.00% |
Biomedical Market [Member] | Media [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,262 | $ 2,337 | $ 4,020 | $ 6,055 |
Biomedical Market [Member] | Media [Member] | OUS [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 111 | 83 | 348 | 387 |
Biomedical Market [Member] | Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 16 | $ 5 | $ 19 | $ 18 |
% of Total Revenues | 0.00% | 0.00% | 0.00% | 0.00% |
Biomedical Market [Member] | Other [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 16 | $ 5 | $ 19 | $ 18 |
Cosmetic Market [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 426 | $ 360 | $ 1,325 | $ 1,245 |
% of Total Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Cosmetic Market [Member] | Ecommerce [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 230 | $ 200 | $ 670 | $ 771 |
% of Total Revenues | 54.00% | 56.00% | 51.00% | 62.00% |
Cosmetic Market [Member] | Professional [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 196 | $ 160 | $ 655 | $ 474 |
% of Total Revenues | 46.00% | 44.00% | 49.00% | 38.00% |
Organization and Significant _6
Organization and Significant Accounting Policies - Fair Values of Liabilities on a Recurring Basis (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Warrant Liabilities | |
Balance as of December 31, 2018 | $ 1,745 |
Fair Value, Measurements, Recurring [Member] | Warrants [Member] | |
Warrant Liabilities | |
Balance as of September 30, 2019 | |
Balance as of December 31, 2018 | 1,745 |
Fair Value, Measurements, Recurring [Member] | Warrants [Member] | Level 3 [Member] | |
Warrant Liabilities | |
Balance as of September 30, 2019 | |
Balance as of December 31, 2018 | $ 1,745 |
Organization and Significant _7
Organization and Significant Accounting Policies - Fair Value Measurement and Unobservable Rollforward Activity of Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||||
Balance as of December 31, 2018 | $ 1,745 | |||
Change in fair value of warrant liability | $ (837) | $ (758) | $ (1,745) | $ (1,092) |
Organization and Significant _8
Organization and Significant Accounting Policies - Assumptions Use as Inputs for Warrant Liability (Detail) | Sep. 30, 2019 | Sep. 30, 2018 |
Risk-Free Interest Rate [Member] | Minimum [Member] | ||
Significant assumptions: | ||
Warrants and Rights Outstanding, Measurement Input | 1.70 | 2.70 |
Risk-Free Interest Rate [Member] | Maximum [Member] | ||
Significant assumptions: | ||
Warrants and Rights Outstanding, Measurement Input | 2.09 | 2.84 |
Volatility [Member] | ||
Significant assumptions: | ||
Warrants and Rights Outstanding, Measurement Input | 73.4 | 88.5 |
Term to Expiration [Member] | Minimum [Member] | ||
Significant assumptions: | ||
Warrants and Rights Outstanding, Term | 6 months 14 days | 1 year 6 months 14 days |
Term to Expiration [Member] | Maximum [Member] | ||
Significant assumptions: | ||
Warrants and Rights Outstanding, Term | 1 year 5 months 15 days | 2 years 5 months 15 days |
Subsequent Financing [Member] | ||
Significant assumptions: | ||
Warrants and Rights Outstanding, Measurement Input | 100 | 90 |
Organization and Significant _9
Organization and Significant Accounting Policies - Summary of Antidilutive Effect Not Included In Diluted Loss Per Share Calculation (Detail) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 6,132,278 | 6,277,626 |
Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 5,427,557 | 4,492,689 |
Warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 3,951,052 | 3,951,052 |
Correction of Immaterial Miss_2
Correction of Immaterial Misstatements in the Financial Statements for the Year Ended December 31, 2018 - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Additional Paid-in Capital [Member] | |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |
Quantifying misstatement in current year financial statements, amount | $ 4,537,000 |
Series D Redeemable Convertible Preferred Stock [Member] | |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |
Quantifying misstatement in current year financial statements, amount | $ 4,300,000 |
Inventory - Summary of the Comp
Inventory - Summary of the Components of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 818 | $ 656 |
Work in process | 467 | 590 |
Finished goods | 1,174 | 1,276 |
Total | 2,459 | 2,522 |
Less: allowance for inventory excess and obsolescence | (305) | (216) |
Total current and non-current inventory, net | 2,154 | 2,306 |
Inventory, net | 1,409 | 1,501 |
Non-current inventory | $ 745 | $ 805 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,434 | $ 3,121 |
Less: accumulated depreciation and amortization | (2,743) | (2,652) |
Property and equipment, net | 691 | 469 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,643 | 1,614 |
Computer Equipment and Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 257 | 251 |
Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 230 | 215 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,276 | 996 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 28 | $ 45 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 40 | $ 45 | $ 115 | $ 130 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Patents and Trademarks | $ 3,706 | $ 3,632 |
Less: accumulated amortization | (1,015) | (958) |
Intangible assets, net | $ 2,691 | $ 2,674 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 26,000 | $ 30,000 | $ 88,000 | $ 85,000 |
Impairment charges | $ 145,000 | $ 157,000 | $ 145,000 | $ 361,000 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Jan. 21, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||||
Common stock, shares authorized | 120,000,000 | 120,000,000 | ||
Preferred stock, shares authorized | 20,000,000 | |||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Preferred stock, par value | 0.001 | |||
Non-convertible promissory note, principal amount | $ 1,000,000 | |||
Accrued and unpaid interest | $ 49,000 | |||
Convertible common stock, conversion price | $ 1.75 | |||
Series G Preferred Stock [Member] | ||||
Equity [Abstract] | ||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||
Convertible preferred stock, conversion price | $ 9.70 | $ 9.92 | ||
Conversion ratio for each share | 0.1031 | 0.1008 | ||
Common Stock [Member] | ||||
Equity [Abstract] | ||||
Conversion of debt, shares | 599,222 | 599,000 |
Capital Stock - Summary of Shar
Capital Stock - Summary of Shares of Common Stock Reserved for Future Issuance (Detail) | Sep. 30, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 19,531,182 |
Options Outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 5,427,557 |
2010 Equity Participation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 4,020,295 |
Convertible Preferred Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 6,132,278 |
Warrants [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 3,951,052 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Apr. 17, 2019 | Jan. 21, 2019 | Mar. 31, 2019 | Aug. 08, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||||||
Related party rent expense | $ 120,000 | $ 120,000 | |||||
Non-convertible promissory note, principal amount | $ 1,000,000 | ||||||
Debt conversion, converted instrument | $ 1,000,000 | ||||||
Accrued interest on promissory note | $ 49,000 | ||||||
Conversion of debt | $ 1,049,000 | 1,049,000 | |||||
Related party payable | 800,000 | $ 1,848,000 | $ 2,045,000 | ||||
Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Conversion of debt, shares | 599,222 | 599,000 | |||||
Conversion of debt | $ 1,000 | ||||||
Unsecured Non-convertible Promissory Note [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Non-convertible promissory note, principal amount | $ 1,800,000 | ||||||
Maturity date | Jan. 15, 2020 | ||||||
Annual interest rate | 4.50% | ||||||
Related party transaction, description | The outstanding principal amount accrues interest at a rate of 4.5% per annum and is due and payable, on January 15, 2020 but may be pre-paid by the Company without penalty at any time. | ||||||
Chief Executive Officer and Co-Chairman [Member] | Unsecured Non-convertible Promissory Note [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Non-convertible promissory note, principal amount | $ 2,000,000 | ||||||
Maturity date | Nov. 1, 2018 | ||||||
Annual interest rate | 4.00% | ||||||
Related party transaction, description | The outstanding principal amount under the Note accrued interest at a rate of four percent (4%) per annum. The Note was due and payable November 1, 2018 and on November 12, 2018, to satisfy the indebtedness incurred on the Note, an amendment to the Note was entered into extending the due date to January 15, 2019 | ||||||
Co Chairman And Chief Executive Officer [Member] | Note Conversion Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Non-convertible promissory note, principal amount | $ 1,000,000 | ||||||
Related party transaction, description | The outstanding principal amount under the New Note accrues interest at a rate of 4.5% per annum. The New Note is due and payable on January 15, 2020, but may be pre-paid by the Company without penalty at any time. | ||||||
Debt conversion, converted instrument | 1,049,000 | ||||||
Accrued interest on promissory note | $ 49,000 | ||||||
Conversion price | $ 1.75 | ||||||
Fair value of common stock price per share | $ 1.60 | ||||||
Gain on conversion | $ 0 | ||||||
Co Chairman And Chief Executive Officer [Member] | Note Conversion Agreement [Member] | Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Conversion of debt, shares | 599,222 | ||||||
Co Chairman And Chief Executive Officer [Member] | Unsecured Non-convertible Promissory Note [Member] | Note Conversion Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Non-convertible promissory note, principal amount | $ 1,000,000 | ||||||
Maturity date | Jan. 15, 2020 | ||||||
Annual interest rate | 4.50% | ||||||
Conversion of debt | $ 1,000,000 |
Stock Options and Warrants - St
Stock Options and Warrants - Stock Options - Additional Information (Detail) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2010 | Dec. 31, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to stock options | $ 2,365,000 | ||||
Unrecognized compensation cost related to unvested shares expected to be recognized, weighted-average period | 1 year 7 months 24 days | ||||
2006 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiry of options | 10 years | ||||
Stock options expiration date | Nov. 16, 2016 | ||||
Options granted to employees, directors and consultants | 0 | ||||
2006 Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options that may be granted | 100,000 | ||||
2010 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiry of options | 10 years | ||||
2010 Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options that may be granted | 9,700,000 | ||||
Outside Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiry of options | 10 years | ||||
Options granted to employees, directors and consultants | |||||
Award vesting terms | 50 months | ||||
Number of options outstanding | 12,634 | 12,634 | 50,730 | ||
2006 Plan and 2010 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted to employees, directors and consultants | 1,345,964 | ||||
Number of options outstanding | 5,414,923 | 4,354,708 | |||
2006 Plan and 2010 Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiry of options | 10 years |
Stock Options and Warrants - Sc
Stock Options and Warrants - Schedule of Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 512 | $ 501 | $ 1,589 | $ 1,165 |
Cost of Sales [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 29 | 22 | 83 | 37 |
Research and Development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 115 | 176 | 426 | 451 |
Selling and Marketing [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 31 | 20 | 88 | 36 |
General and Administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 337 | $ 283 | $ 992 | $ 641 |
Stock Options and Warrants - Fa
Stock Options and Warrants - Fair Value of Stock Option Award, Weighted Average Assumptions (Detail) - Options Available for Future Grant [Member] | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Significant assumptions (weighted average): | ||
Risk-free interest rate at grant date | 2.44% | 2.72% |
Expected stock price volatility | 84.95% | 92.68% |
Expected dividend payout | 0.00% | 0.00% |
Expected option life based on management's estimate | 5 years 8 months 15 days | 5 years 8 months 12 days |
Stock Options and Warrants - Su
Stock Options and Warrants - Summary of Changes in Options Outstanding and Related Exercise Prices for Shares of Company's Common Stock Options Issued (Detail) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
2006 Plan and 2010 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Outstanding, Beginning balance | 4,354,708 |
Number of Options, Granted | 1,345,964 |
Number of Options, Canceled or expired | (285,749) |
Number of Options, Outstanding, Ending balance | 5,414,923 |
Number of Options, Options vested and expected to vest Ending Balance | 5,176,891 |
Number of Options, Options exercisable Ending Balance | 3,042,547 |
Weighted Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares | $ 3.95 |
Weighted Average Exercise Price Per Share, Granted | $ / shares | 1.44 |
Weighted Average Exercise Price Per Share, Canceled or expired | $ / shares | 2.63 |
Weighted Average Exercise Price Per Share, Outstanding, Ending balance | $ / shares | 3.39 |
Weighted Average Exercise Price, Options vested or expected to vest Ending Balance | $ / shares | 3.48 |
Weighted Average Exercise Price, Options exercisable Ending Balance | $ / shares | $ 4.83 |
Weighted Average Remaining Contractual Term, Options Outstanding Ending Balance | 8 years 3 months |
Weighted Average Remaining Contractual Term, Options vested or expected to vest Ending Balance | 8 years 2 months 15 days |
Weighted Average Remaining Contractual Term, Options exercisable Ending Balance | 7 years 8 months 26 days |
Outside Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, Outstanding, Beginning balance | 12,634 |
Number of Options, Granted | |
Number of Options, Exercised | |
Number of Options, Canceled or expired | |
Number of Options, Outstanding, Ending balance | 12,634 |
Weighted Average Exercise Price Per Share, Outstanding, Beginning balance | $ / shares | $ 90.23 |
Weighted Average Exercise Price Per Share, Granted | $ / shares | |
Weighted Average Exercise Price Per Share, Exercised | $ / shares | |
Weighted Average Exercise Price Per Share, Canceled or expired | $ / shares | |
Weighted Average Remaining Contractual Term, Options exercisable Ending Balance | 1 month 28 days |
Stock Options and Warrants - Re
Stock Options and Warrants - Restricted Stock Awards - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 512,000 | $ 501,000 | $ 1,589,000 | $ 1,165,000 |
Under 2006 Plan and 2010 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Granted | 0 | 9,855 | ||
Number of Shares, Vested | 9,855 | |||
Weighted Average Grant Date Fair Value, fully Vested | $ 1.55 | |||
Grant-date fair value of restricted stock awards | $ 0 | $ 15,000 | ||
Stock-based compensation expense | 0 | $ 15,000 | ||
Unrecognized compensation costs | $ 0 | $ 0 |
Stock Options and Warrants - _2
Stock Options and Warrants - Summary of Outstanding Warrants Related to Warrant Transactions (Detail) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Number of Shares, Outstanding, Beginning balance | 3,951,052 |
Warrants, Forfeited/Cancelled | |
Number of Shares, Outstanding, Ending balance | 3,951,052 |
Exercise Price, Outstanding, Beginning balance | $ / shares | $ 1.75 |
Exercise Price, Outstanding, Ending balance | $ / shares | $ 1.75 |
October 2014 Financing [Member] | |
Class of Warrant or Right [Line Items] | |
Number of Shares, Outstanding, Beginning balance | 2,483 |
Warrants, Forfeited/Cancelled | |
Number of Shares, Outstanding, Ending balance | 2,483 |
Expiration Date | Apr. 14, 2020 |
March 2016 Financing [Member] | |
Class of Warrant or Right [Line Items] | |
Number of Shares, Outstanding, Beginning balance | 3,948,569 |
Warrants, Forfeited/Cancelled | |
Number of Shares, Outstanding, Ending balance | 3,948,569 |
Expiration Date | Mar. 15, 2021 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2019USD ($)LeaseInstallmentCustomer | Sep. 30, 2018 | |
Commitments And Contingencies [Line Items] | ||
Number of operating leases for real estate | Lease | 3 | |
Right-of-use assets | $ 784,000 | |
Operating lease liabilities | $ 1,165,000 | |
Supplier Concentration Risk [Member] | Vendor One [Member] | Cost of Goods Total [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration risk percentage | 10.00% | 25.00% |
Number of customers accounted for more than 10% | Customer | 0 | |
Biomedical Market [Member] | Customer Concentration Risk [Member] | Major customer 1 [Member] | Sales Revenue Segment [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration risk percentage | 39.00% | 33.00% |
Biomedical Market [Member] | Customer Concentration Risk [Member] | Major customer 2 [Member] | Sales Revenue Segment [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration risk percentage | 13.00% | 27.00% |
Astellas Pharma [Member] | ||
Commitments And Contingencies [Line Items] | ||
Minimum license fee payable | $ 75,000 | |
Number of installments per year | Installment | 2 | |
Carlsbad, California [Member] | ||
Commitments And Contingencies [Line Items] | ||
Operating leases with term date | 2020-02 | |
Oceanside, California [Member] | ||
Commitments And Contingencies [Line Items] | ||
Operating leases with term date | 2021-12 | |
Option to terminate of lease upon six-month advanced notice | Jan. 1, 2020 | |
Advanced notice required to terminate lease | 6 months | |
Frederick, Maryland [Member] | ||
Commitments And Contingencies [Line Items] | ||
Operating leases with term date | 2025-11 |
Commitments and Contingencies_2
Commitments and Contingencies - Information Related to Right-of-use Assets and Lease Liabilities (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Operating Leases Future Minimum Payments Due [Abstract] | ||
Operating lease costs | $ 117 | $ 370 |
Cash paid for operating lease liabilities | $ 124 | 360 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 1,389 | |
Weighted-average remaining lease term (years) | 4 years 11 months 26 days | 4 years 11 months 26 days |
Weighted average discount rate | 17.55% | 17.55% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Maturities of Lease Liabilities (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 (remaining months) | $ 125 |
2020 | 368 |
2021 | 347 |
2022 | 220 |
2023 | 226 |
Thereafter | 473 |
Total lease payments | 1,759 |
Less: present value adjustments | (594) |
Operating lease, liabilities | 1,165 |
Current operating lease liabilities | 236 |
Non-current operating lease liabilities | 929 |
Total operating lease liabilities | $ 1,165 |
Commitments and Contingencies_4
Commitments and Contingencies - Summary of Future Minimum Lease Payments Required under Operating Leases that Have Initial or Remaining Non-Cancelable Lease Terms in Excess of One Year (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2019 | $ 491 |
2020 | 368 |
2021 | 347 |
2022 | 220 |
2023 | 227 |
Thereafter | 454 |
Total | $ 2,107 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019SegmentUnits | |
Segment Reporting [Abstract] | |
Number reporting segments | Segment | 3 |
Number of business units | Units | 2 |
Segments - Revenues, Expenses a
Segments - Revenues, Expenses and Operating Income (Loss) by Market Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 2,096 | $ 3,195 | $ 6,635 | $ 8,866 |
Operating expenses: | ||||
Total operating expenses | 2,909 | 3,858 | 9,879 | 11,080 |
Operating income (loss): | ||||
Total operating income (loss) | (813) | (663) | (3,244) | (2,214) |
Anti-aging Cosmetic Market [Member] | ||||
Revenues: | ||||
Total revenues | 426 | 360 | 1,325 | 1,245 |
Operating expenses: | ||||
Total operating expenses | 636 | 589 | 1,956 | 1,931 |
Operating income (loss): | ||||
Total operating income (loss) | (210) | (229) | (631) | (686) |
Biomedical Market [Member] | ||||
Revenues: | ||||
Total revenues | 1,670 | 2,835 | 5,310 | 7,621 |
Operating expenses: | ||||
Total operating expenses | 1,320 | 1,838 | 4,170 | 4,673 |
Operating income (loss): | ||||
Total operating income (loss) | 350 | 997 | 1,140 | 2,948 |
Therapeutic Market [Member] | ||||
Operating expenses: | ||||
Total operating expenses | 953 | 1,431 | 3,753 | 4,476 |
Operating income (loss): | ||||
Total operating income (loss) | $ (953) | $ (1,431) | $ (3,753) | $ (4,476) |